Standing orders same day

vcristian

Hi,

Would it be OK to have several standing orders between my accounts in the same day if I don't have enough money to make them all if one happens to fail?
Example: 1000£ from A to B; 1000£ from B to C; 1000£ from C to A; being B and C with less than 1000£ in balance.
If I do it leaving 1 day gap between orders, and one bank delay the order (if they don't work that day), I would have the same problem. Any advice?

Thanks

badger09

vcristian wrote: »

Hi,

Would it be OK to have several standing orders between my accounts in the same day if I don't have enough money to make them all if one happens to fail?
Example: 1000£ from A to B; 1000£ from B to C; 1000£ from C to A; being B and C with less than 1000£ in balance.
If I do it leaving 1 day gap between orders, and one bank delay the order (if they don't work that day), I would have the same problem. Any advice?

Thanks

I definitely wouldn't risk SOs all on the same day unless there was sufficient in each account to cover the outgoing SO should the incoming SO be delayed.

Most banks do not process SOs at the weekend, though Tesco does, so you could have problems even leaving one day between them.

Could you avoid the potential problem by moving smaller amounts, say £500 x 2 instead? If not, I would either leave minimum of 3 days between, or do some/all of the transfers manually for accounts with low balances.

agrinnall

Manual payments is the easiest way to be certain in all circumstances that the funds have already arrived before moving them on.

No_6

manual payments if you have a GOOD budget account
are the best way to go...you can take into account bank hols
and xmas dates that sometime muck up SO

if you are lazy stick to SO's

Katiehound

If my SOs are between a/cs in the same bank I set them up to go next day, otherwise I allow 2 days.
All the a/cs have enough to cover the £1k if push comes to shove- just lose interest for one day.

agrinnall

Katiehound wrote: »

If my SOs are between a/cs in the same bank I set them up to go next day, otherwise I allow 2 days.
All the a/cs have enough to cover the £1k if push comes to shove- just lose interest for one day.

Internal transfers are not done by SO and can safely be scheduled on the same day. SOs are processed through the Faster Payments system which cannot be used for payments within a single Financial Institution.

Katiehound

agrinnall wrote: »

Internal transfers are not done by SO and can safely be scheduled on the same day. SOs are processed through the Faster Payments system which cannot be used for payments within a single Financial Institution.

Well, money goes from BOS 1 - BOS2 - the letters SO are written beside that transaction but it is on the same day. Just looked at my statements

agrinnall

Katiehound wrote: »

Well, money goes from BOS 1 - BOS2 - the letters SO are written beside that transaction but it is on the same day. Just looked at my statements

The correct designation would be IBP (intra bank payment) but it sounds like BOS have just lumped them in with SO - they are probably not the only bank to do this, perhaps they think their customers are too stupid to comprehend more than a small set of acronyms, although in reality it would be better for people to be able to see what different types of payments they are making.

northwalesd

I've just checked with a Halifax account, which transfers money to another Halifax account for bills. That too not only uses the acronym SO it quite clearly states Transaction type: Standing Order (SO) against that transaction.

ETA: it is going from a sole account to a joint account, not sure if that makes any difference.

agrinnall

northwalesd wrote: »

I've just checked with a Halifax account, which transfers money to another Halifax account for bills. That too not only uses the acronym SO it quite clearly states Transaction type: Standing Order (SO) against that transaction.

ETA: it is going from a sole account to a joint account, not sure if that makes any difference.

It's not surprising that if BOS do it then Halifax do it too as they use the same systems.

Regardless of how they show it on a statement, it is not actually a Standing Order. It makes no difference what types the accounts are, as I stated previously all SOs are processed through FPS, and it is not possible to use FPS for transfers within a Financial Institution, so these cannot be SOs.

Just to add, none of this makes any significant difference to what you as a customer see, the only real difference, as I mentioned initially, is that internal transfers will nearly always be processed close to immediately whereas SOs are sent to the receiving bank in the early hours of the morning.