Standing Order timescale

NoodleDoodleMan

We have a basic Santander current account principally for their fee free ATM use in Spain and the Canaries when on holiday.

It requires a minimum £500 monthly pay in to meet the Ts&Cs for this benefit.

I'm considering setting up a £500 standing order payable into this account from a current account with another bank, as of 1st of each month.

If I set up a reciprocal SO into the main account also on 1st of the month, is there a danger that one, or the other, of these accounts will have insufficient funds to honour the relevant SO ?

I suppose I could organise the "payback" for the 2nd of the month, however I'd prefer a same day crossover if possible.

Anybody ?

I also have a question about last working day of the month - but I'll make that a separate thread to avoid confusion.

[Deleted User]

There’s no guarantees which payment will be taken first

Robin9

I believe - debits precede credits on bank computers.

NoodleDoodleMan

I was told that as long as the respective transactions are actioned within business hours on the same day this would work OK ?


Not sure about that !!!

eskbanker

You haven't named the other bank but it's possible that they may handle SOs differently from Santander, especially around weekends and bank holidays, so you need to consider both sides of the equation when planning this.

The £500 minimum monthly funding doesn't need to be paid in in one transaction so you could schedule weekly reciprocal SOs of £125 on, say, Wednesdays (minimising bank holiday impact), which would then also have much less risk of encountering insufficient funds....

NoodleDoodleMan

Thanks.

That could work.

Only ever paid SOs and DDs monthly. or a couple annually.