Using Direct Debits to Credit Cards

badger09

keiran wrote: »

Tesco Bank stopping their D/Ds from their savings accounts is the biggest pain in the ***. It allowed all the main banking to occur from a high interest current account (Santander123 in my case) where most of the money could be kept, while reaping the incentive/rewards/interest offered by other banks' current accounts using the minimum cash holding and requiring minimal maintenance. This will no longer be the case!


I need 27 D/Ds to continue my present bank incentive/rewards/interest arrangements (or prioritise and lose some benefits)

The suggestions on the MSE boards have been very helpful. I'll have to rely on existing D/Ds, changing my long-standing charity donations from standing orders to D/Ds (I'd have preferred to keep control via the standing order route though), increasing the number of credit cards carrying a balance transfer (even if for a small amount), and opening other accounts including National Lottery, Park, BM, PO and Saga.

I attempted to open PO last night and after completing the entire application process got a screen saying "technical difficulties". I tried again this morning and it was opened in minutes.

I looked at BM and Saga and saw that they needed a cheque as part of account opening - none of the bank accounts I allocated D/Ds to has a cheque book and so I've had to order a cheque book specially today. The Saga webpage additionally stated earlier that the account was unavailable, but I now see that the application page is available.

I further see that PO, BM and Saga are accounts for a year only and so there's uncertainty after that and also the tension between opening them now in view of the account opening slowness described by others and waiting more until the April cut off for Tesco D/Ds

I can't speak for Saga & PO accounts as I don't have them - yet:cool: however, as far as BM is concerned you do not need th opening cheque to be from the same account as you want to set up the DD. A cheque from any account will do to open it, then once up and running, you are able to change the account from which the DD is drawn.

Same comment as above re Saga & PO, but as far as the BM account is concerned, the account is not 'for a year only'. The interest rate drops after a year, but to be honest, as I, and I suspect others, are not using it for the interest, the rate is almost irrelevant;)

Katiehound

BM interest is reasonable (presumably for year 1) but the Saga rate is paltry from the outset! however it does mean that money is being made by those current accounts........

Katiehound

Further info on the Saga telephone savings if you are thinking of going down that route:
(make sure your mother's maiden name is completed on on-line application form!- mine wasn't- don't ask how and it has caused manifold problems!)

Initial deposit is minimum of £1
Deposit can be made in the form of multiple cheques BUT at least one of these cheques must be drawn from the account you have nominated as your Linked Account.
balance of up to £1k earns 0.05%, over £1k earns 0.30%
Big bucks!!

badger09

Katiehound wrote: »

Further info on the Saga telephone savings if you are thinking of going down that route:
(make sure your mother's maiden name is completed on on-line application form!- mine wasn't- don't ask how and it has caused manifold problems!)

Initial deposit is minimum of £1
Deposit can be made in the form of multiple cheques BUT at least one of these cheques must be drawn from the account you have nominated as your Linked Account.
balance of up to £1k earns 0.05%, over £1k earns 0.30%
Big bucks!!

Thanks Katiehound

So, unlike BM, no mechanism to change nominated account after opening. I'm pretty sure I don't have chequebooks for any of the few remaining accounts where still I need DDs. CBA requesting them, and its probably time to rationalise again anyway:o

Katiehound

Well, you might well be able to change the nominated bank account at a later date- I simply can't be bothered to search through the acres of small print! (I'm sure you can because people do sometimes change their bank accounts, don't they!;))

Well, I did request a cheque book just for this exciting experience!Once it is set up you can just leave it ticking over. At the end of the first year it reduces to... the low rate already given!
I'm assuming the smallest DD can be £1, mine isn't at present, but thinking it will be once I have a telephone password set up. (Only applied in early Nov- wheels grind esceeeedingly slowly with this setup.....and there was the hiccup of missing mother's maiden name..) really the interest is sub paltry, but if it allows the other goodies, then worth a bit of hassle.