DDs to meet bank T&Cs

TraySelect

Please can someone suggest some DDs I can set up, for least/minimal monthly outlay, to meet the T&Cs of Lloyds [and possibly other banks].

[Sorry if this is old hat - I've searched Forum but can't find a thread..]

thanks for your help

polymaff

This is asked about every fortnight. Here's the cut-and-paste:

Use two Tesco Internet Saver accounts to create the DDs you need - to meet the DD requirement for as many accounts as you like.

Suggestion: Don't make the DDs too small. Tesco are reported to close such accounts. Best of all, make the sum of the two DDs the average monthly interest the account generates - then you automatically sweep the interest. (e.g. fully-funded Club Lloyds - DD's to total £13.10)

TraySelect

Thanks very much polymaff

chineplate

polymaff wrote: »

This is asked about every fortnight. Here's the cut-and-paste:

Use two Tesco Internet Saver accounts to create the DDs you need - to meet the DD requirement for as many accounts as you like.

Suggestion: Don't make the DDs too small. Tesco are reported to close such accounts. Best of all, make the sum of the two DDs the average monthly interest the account generates - then you automatically sweep the interest. (e.g. fully-funded Club Lloyds - DD's to total £13.10)

How do you set up a DD to pay yourself, I thought that you had to be a member of the BACS Payment Scheme to issue DD.

masonic

chineplate wrote: »

How do you set up a DD to pay yourself, I thought that you had to be a member of the BACS Payment Scheme to issue DD.

The DD is paid to Tesco Bank. Tesco uses the proceeds to credit your savings account. This is a very common mechanism for funding savings accounts. I am surprised you've never come across it before.

chineplate

So, are you saying that I have to instruct Tesco to set up a DD to pull money from my "Other Bank Account. If so what is the mechanism I use to give this instruction to Tesco.

polymaff

chineplate wrote: »

How do you set up a DD to pay yourself, I thought that you had to be a member of the BACS Payment Scheme to issue DD.

chineplate wrote: »

So, are you saying that I have to instruct Tesco to set up a DD to pull money from my "Other Bank Account. If so what is the mechanism I use to give this instruction to Tesco.

You set it up on the Tesco website as a regular payment from the relevant bank account to your Tesco Internet Saver. Tesco then then set this up as a Direct Debit transaction. Very straightforward and reliable.

chineplate

Ok, thanks, understood.

polymaff

chineplate wrote: »

Ok, thanks, understood.

BTW, take note of the "Suggestion" in my initial response to the OP. We're all taking advantage of Tesco's decision to implement regular transfers-in by the relatively expensive (to them) process of Direct Debits, so don't rub their corporate nose in it with a 99p DD.