Last working day of the month

NoodleDoodleMan

What's the story if trying to set up a Standing Order on the last bank working day of the month ?

Obviously it could be 31st, 30th, 29th or 28th as appropriate.

Do you set it up for the 31st and the bank adjusts that automatically for the months which have fewer days ?

The earliest it could be paid is 26th February, when the 28th falls on a Sunday.

Has anybody experienced a drama in this type of scenario ?

EarthBoy

NoodleDoodleMan wrote: »

What's the story if trying to set up a Standing Order on the last bank working day of the month ?

Obviously it could be 31st, 30th, 29th or 28th as appropriate.

Do you set it up for the 31st and the bank adjusts that automatically for the months which have fewer days ?

Most banks don't pay Standing Orders on weekends or Bank Holidays and your payment will go out on the next working day instead. If your set payment date is for the last day of the month, and that falls at a weekend, it won't go out until the start of the following month. They will not bring the payment forward and pay it on the Friday instead.

Some banks, Barclays for example, let you set up Standing Orders specifically for the "last working day of the month", rather than for a specific date, so the payment date will vary from month to month, which solves the problem.

If you're with one of the banks that don't provide that option (most of the others, probably. Lloyds, Halifax or Nationwide, certainly don't) you'll have to set up the payment date early enough in the month to make sure that it never falls on a weekend or a Bank Holiday. This will have be by 24th at the latest. You can't have 25th or 26th because of Christmas Day and Boxing Day.

If Christmas Day falls on a Saturday, then the Monday and Tuesday will be Bank Holidays, so a Standing Order for 25 December wouldn't go out until Wednesday 29 December.

I don't know what banks would do about payments dated for 29th, 30th or 31st of the month if any month doesn't have such a date (e.g. February, or 30 day months) as I've never tried it, but I suspect that the payment wouldn't be sent until the first working day of the following month.

Willing2Learn

I believe that if the SO date falls on a day that doesn't exist, due to it being a shorter month, then it will be processed on the next working day (1st of the following month).

NoodleDoodleMan

Thanks all.

Talk about complicated !!!

I'll look at Barclays.

eskbanker

Before considering adding complexity by introducing more banks/accounts, perhaps there may be other ways of addressing the overall issue you're trying to resolve, e.g. is there any room for manoeuvre at the recipient's end?

agrinnall

eskbanker wrote: »

Before considering adding complexity by introducing more banks/accounts, perhaps there may be other ways of addressing the overall issue you're trying to resolve, e.g. is there any room for manoeuvre at the recipient's end?

Following on from this, surely the answer is to pay early, if the date is set to the 26th it can't fail to be paid on or before the last working day of the month.

glider3560

agrinnall wrote: »

Following on from this, surely the answer is to pay early, if the date is set to the 26th it can't fail to be paid on or before the last working day of the month.

I get paid on the last working day of the month, so it's a useful day to set standing orders.

Unfortunately, everything seems to go wrong (e.g. impossible to set up the same way in months without 31 days) so I gave up and just make the payments on 1st of the month now.

Joe_Bloggs

My thoughts on this topic:-


EarthBoy Said:-

If you're with one of the banks that don't provide that option (most of the others, probably. Lloyds, Halifax or Nationwide, certainly don't) you'll have to set up the payment date early enough in the month to make sure that it never falls on a weekend or a Bank Holiday.

Lloyds and Halifax are the same entity . I Have current accounts with both of them. You can make effective faster payments out or in 24/7 from internal/external sources. Standing orders are restricted to Banking working days.



Nationwide are a 24/7 banking organization. I have had mortgage payments taken on Christmas day. Bank Holidays /Weekends do not affect the scheduling of their banking transactions.



There is a set of financial institutions that do have a 24/7 Standing order policy and a set of other financial institutions that don't .


I Invite others to express their views on the merits or drawbacks of the approach to 24/7 that we have.
J_B.

glider3560

Joe_Bloggs wrote: »

Nationwide are a 24/7 banking organization. I have had mortgage payments taken on Christmas day. Bank Holidays /Weekends do not affect the scheduling of their banking transactions.

Nationwide don't pay Standing Orders on weekends or bank holidays. Maybe internal mortgage payments are handled differently, but typical standing orders aren't. This is confirmed in the "Hint and tips" box at https://www.nationwide.co.uk/support/payments-and-transfers/standing-order-change.

YorkshireBoy

Joe_Bloggs wrote: »

There is a set of financial institutions that do have a 24/7 Standing order policy...

I'm only aware of Tesco. Who are the others please?

glider3560

YorkshireBoy wrote: »

I'm only aware of Tesco. Who are the others please?

Starling and Monzo pay standing orders at weekends and on bank holidays.