money going in on same day as money going out means I avoid going into an overdraft?

Jokool

Hi,
I have about £50 over what my bank balance is, due to come out soon on the same date I have a few hundred going into that account. If the time of the direct debit leaving is before I'm paid does that mean I'll incur an issue of going into minus/bank money? or is it that theres a few hour window where the money isn't cleared anyways & therefore I'll have no problem?

Please help, thanks

Jo

mwarby

Many/most banks give you till around 3-4pm to sort out not having enough funds for a direct debit, I'm also fairly sure most if not all banks calculate interest daily, not say hourly

If you tell us which bank we maybe able to give better info

Anthorn

Jokool wrote: »

Hi,
I have about £50 over what my back balance is due to come out soon on the same date I have a few hundred going into that account. if the time of the direct debit leaving is before I'm paid does that mean I'll occur an issue of going into minus/bank money? or is it that theres a few hour window where the money isn't cleared anyways & therefore I'll have no problem?

Please help, thanks

Jo

Probably come to grief: Most banks, at least all those I have had accounts with, take out debits immediately but credits are added after the account is updated which is after midnight. Credits by FPS are largely the exception. That will probably cause your account to be overdrawn and you may be given until 4PM on the day of the debit to credit the account. Check your bank's T&Cs.

You would come to grief even more with CYBG B: They debit the current account when the DD is known and not when it is actually debited. Right now I have two direct debits and a standing order due on the 27th Feb which were debited on the 24th Feb. Whether that would cause my account to be overdrawn to the extent that I would incur fees remains to be seen but I'm not willing to test it. Overall though I leapfrog over a month so for example I spend the income from month 1 in month 3.

mwarby

This article may help http://www.moneysavingexpert.com/news/banking/2014/08/payment-bounced-youll-soon-have-a-second-chance-to-avoid-fees it lists the banks which give a second chance on day

Jokool

I'm with first direct. I gave them a call just to make sure (got through straight away btw). Said I did have an overdraft so they'll be no charges anyways but the pending transactions should be given until midnight. So I shall be fine. Thanks forum folks

Rich2808

A similar issue happened to me overnight with the Co-op.

I had two direct debits which went out just after midnight which left me technically overdrawn by £60 but I made a faster payment to take me back in credit by 1.30am. I had a large payment coming in which was also in my account when I got up this morning which I assumed the bank was aware of hence they released the DDs at midnight. One of these DDs was a payment to a savings account which didn't arrive until this morning anyway.

Presumably I won't be regarded as being technically overdrawn for 90 minutes from midnight to 1.30am and lose eligibility for my Co-op Everyday rewards bonus - given it was within the same day and rectified before 'opening hours'

I will adjust things to make sure this doesn't occur again next month!

polymaff

Jokool wrote: »

Hi,
I have about £50 over what my bank balance is, due to come out soon on the same date I have a few hundred going into that account. If the time of the direct debit leaving is before I'm paid does that mean I'll incur an issue of going into minus/bank money? or is it that theres a few hour window where the money isn't cleared anyways & therefore I'll have no problem?

The issue of interest charged / benefits lost for overdrawing is - what are the cleared funds in the account at the end of the working day?

The issue with respect to an outgoing payment being made without sufficient funds to cover is down to your bank's specific conditions and any overdraft arrangements you have with them.