Penny direct debits?

jone111

What is the lowest amount DD i can get?

stclair

Possibly £1.....

Biggles

From the bank's point of view, it'll be 1p.

But, in practice, I think the minimum is down to what the payee will accept. Not many firms with any sense will be happy to receive 1p when it probably costs them nearer to £1 to process it.

polymaff

jone111 wrote: »

What is the lowest amount DD i can get?

Don't be tempted into being a wise guy. Particularly if this is in respect of meeting the conditions for interest-bearing accounts, I'd stick to DDs at around about £5.

Kernel_Sanders

polymaff wrote: »

Don't be tempted into being a wise guy. Particularly if this is in respect of meeting the conditions for interest-bearing accounts, I'd stick to DDs at around about £5.

Maybe he's after Co-op's £4 for 4 DDs account, which might not be worth it otherwise after 2 x Tesco and 1 Paypal have been set up. Actually, they have to pay out every month as well.

Dan83

You normally have to move money through an account aswell as set up direct debits to get interest/bonus.

So instead of setting up direct debits for 1p/£1 why not set them up for more money and get the money back via direct debit and not bank transfare.

My Barclays account needs 2 direct debits and £800 per month. Direct debits are set for around 15th and 16th of the month, I've set up a standing order to move £800 in around the 10th.

The £800 then comes back via 2 £400 direct debits.

DCFC79

Why not just do £1 and a few days later send it back to the originating account or do a (or 2) DD for £1 once a month.

Kendall80

I have 2x 50p going out of my club lloyds to tesco savings accounts.

badger09

Dan83 wrote: »

You normally have to move money through an account aswell as set up direct debits to get interest/bonus.

So instead of setting up direct debits for 1p/£1 why not set them up for more money and get the money back via direct debit and not bank transfare.

My Barclays account needs 2 direct debits and £800 per month. Direct debits are set for around 15th and 16th of the month, I've set up a standing order to move £800 in around the 10th.

The £800 then comes back via 2 £400 direct debits.

May I ask, to which of your accounts you return 2 x £400 per month by direct debit?

In my experience, there are very few personal accounts which allow you to set up direct debits. Most direct debits have to be set up by the organisation whose bill you are paying.

Ashen

Biggles wrote: »

From the bank's point of view, it'll be 1p.

But, in practice, I think the minimum is down to what the payee will accept. Not many firms with any sense will be happy to receive 1p when it probably costs them nearer to £1 to process it.

I really don't think it costs them anywhere near that - there are companies that, as a small business you can setup DD's with your clients - they charge 1p fee for a £1 DD (or 1% up to a max of £1).

polymaff

There's a simple answer to all of this which addresses just about everyones' concerns.

Calculate the mean, received, interest per month - and set the DDs to draw this interest out each month, just after it has been paid.

For instance, a fully-funded Club Lloyds account at present generates £13.10 nett per month. Two DDs set to pay out £6.55 each on the 2nd of each month will address the size-of-DD question asked by the OP as well as automating the first part of the aggregation of non-interest-bearing deposits as part of an interest-maximising process.