"At least 2 Active Direct Debits"

richmoore4071

Hi All,

I have a question about current accounts and what banks mean when they say that you have to have "at least 2 active direct debits" leaving an account.

I'm trying to kind of play the system and have 3 separate current accounts on the go so I can have my £££ earning the most interest possible. If I transfer money between the 3 accounts every month (each one having a direct debit linked to the other two), Will this satisfy the banks' need for me to have 2 active direct debits in each account?

Cheers for any responses or help!

Rx

YorkshireBoy

You can't pull money into current accounts by direct debit.

societys_child

(each one having a direct debit linked to the other two)

Well, yes it would, but . . .

. . which banks do you know that allow you set your own DD ?

Hint: You need an on-line saver or two

Zanderman

richmoore4071 wrote: »

If I transfer money between the 3 accounts every month (each one having a direct debit linked to the other two), Will this satisfy the banks' need for me to have 2 active direct debits in each account?

No, because those won't be direct debits.

Direct Debits are a specific type of debit, mostly used for regular payments to third parties like BT, gas or electric companies etc. You can't set up a DD to yourself - only to an organisation that can accept payment by DD,

The only way round this, without actually paying anyone, is to open savings accounts that can be paid into by DD. That way you can pay out by DD, fulfilling the requirements but not losing any money, as it's just going to a savings account that you can get it back from.

For your scheme to work you may also, of course, have to transfer money direct between the accounts as most have a minimum pay-in each month. That's easy to do, but that won't be DD.

squaredoggy1

We have a BM savings account and a Tesco savings account which use DD to transfer money so we 'cheat' and use them as thee live DD's and only send a £1 across each month!

ceredigion

BOS Classic Account with vantage ?
https://forums.moneysavingexpert.com/discussion/5463084

richmoore4071

Thanks for all the replies everyone!

And also thanks for setting me straight on the difference between a transfer and a DD! As I'm sure is apparent, I'm a bit new to all this.

So...Am I right in saying that if I get a Tesco online saver and a BM account (BM stands for...?) I can set up a direct debit paying into them from the new accounts I intend to open and it'll satisfy the "2 active direct debits" thing?

Failing that can I give a quid or 2 to charity each month or something?

Rxx

squaredoggy1

Birmingham Midshires - but they only allow one DD or linked bank account, Tesco allow more than one bank account against one savings account ie multiple and you can set DD's against all of them pulling say £1 a month to quilfy or to meet the terms of the account - just remeber to leave a few quid in the saver for that transaction..........

latinaid

Thanks for all this info - I came here looking for exactly this, since I found out that Lloyds Club have not been giving me interest for the last two months - I have two DDs set up from my Tesco savings a/c, but I'm guessing they don't count these as two separate DDs. (Interestingly, I did get interest for the first two months after opening the account in April, but they seem to have changed the criteria/clamped down/tightened things up). Just thought I'd mention this in case others like me didn't realise that you have to have the DDs set up to pay into different accounts. I'm now setting up a second Tesco savings account for the 2nd DD (and meanwhile have moved the money into my Santander 123 a/c so it's earning some interest while I'm waiting for it all to get set up)

Katiehound

richmoore4071 wrote: »

Failing that can I give a quid or 2 to charity each month or something?

Rxx

Christian Aid, Save the Children & Water Aid all advertise for £2 (or more!) pm DD donations

Ed-1

latinaid wrote: »

Thanks for all this info - I came here looking for exactly this, since I found out that Lloyds Club have not been giving me interest for the last two months - I have two DDs set up from my Tesco savings a/c, but I'm guessing they don't count these as two separate DDs. (Interestingly, I did get interest for the first two months after opening the account in April, but they seem to have changed the criteria/clamped down/tightened things up). Just thought I'd mention this in case others like me didn't realise that you have to have the DDs set up to pay into different accounts. I'm now setting up a second Tesco savings account for the 2nd DD (and meanwhile have moved the money into my Santander 123 a/c so it's earning some interest while I'm waiting for it all to get set up)

You get a grace period and get paid interest on Club Lloyds for the first full monthly billing period regardless of direct debits.

If you've got 2 direct debit mandates set up and showing then that's fine - but they must both pay out each month. It's not enough to just have them set up (like it is for instance with Santander 123).