Delayed SO's due to bank holidays

tel_

I have SO's set-up to recycle money through various bank accounts to meet the minimum pay-in requirements, like many of us do. I leave a 3-day gap between each SO paid out due to no SO's being executed over weekends. However, an SO of mine due tomorrow (8th) will not appear until Monday now (11th) in the next bank account, of which, that account is due to pay out that money on the 11th. 

Are banks' IT systems likely to realise this? And if sufficient funds aren't available, will they try and action the payment later, or even the next day?

Usually I adjust SO's before public holidays, but forgot about this one tomorrow!

penners324

I have a SO between accounts on the same day. 1 account usually with pence in it. They work as usual.

jonesMUFCforever

Credits will always go in before payments out - so you should be ok.

Thrugelmir

Onus is on you to ensure that sufficient funds are available. If there's not the transaction will fail and will not  be attempted again. 

Descrabled

I have SO set to move money on the same day. Santander's payment to the regular saver always fails on the first atempt in the earlly hours because the money from Lloyds has not yet arrived.

The SO is again atempted mid afternoon and is successful because the money from Lloyds has arrived.

Most of my accounts have arranged overdrafts to avoid these problems. Santander won't give me an overdraft.

Descrabled

Just to add that I believe all my bank accounts retry to pay SO and DD mid afternoon if there are insufficient funds available just after midnight.

They also send texts to inform you to add funds to the account.

fifeken

jonesMUFCforever said:

Credits will always go in before payments out - so you should be ok.

How would that work on two accounts that pay to each other (TSB in my case)?  One has to pay out first and it's instantly in the other one, so there'll always be one debited before it's been credited.

General_Grant

jonesMUFCforever said:

Credits will always go in before payments out - so you should be ok.

Sorry, that's not logical.  For a payment to be IN one account it has to have gone OUT from another.  So it leaves one account before it can be received by the other.

However an individual bank account will often show the credit before the debit but that doesn't mean the time of receipt and payment were in that order.

wmb194

tel_ said:

I have SO's set-up to recycle money through various bank accounts to meet the minimum pay-in requirements, like many of us do. I leave a 3-day gap between each SO paid out due to no SO's being executed over weekends. However, an SO of mine due tomorrow (8th) will not appear until Monday now (11th) in the next bank account, of which, that account is due to pay out that money on the 11th. 

Are banks' IT systems likely to realise this? And if sufficient funds aren't available, will they try and action the payment later, or even the next day?

Usually I adjust SO's before public holidays, but forgot about this one tomorrow!

If you're worried, simply change the Monday SO to Tuesday. You should still have time.

Edit: Or cancel it and do it manually.

Wheres_My_Cashback

Descrabled said:

Just to add that I believe all my bank accounts retry to pay SO and DD mid afternoon if there are insufficient funds available just after midnight.

They also send texts to inform you to add funds to the account.

With DDs, multiple attempts are made to pull the money out of the account up until the cut off point, usually around 1430-1500. If enough funds are not received by cut off the DD will be reversed and fail.
SOs, because they are pushed operate differently and many banks try once and once only
EG. LBG platforms push SOs out at between 0020-0040 each night Mon-Fri (not PH) and if there are not enough funds in the account they simply won't go. There are no further attempts to push.

EarthBoy

Wheres_My_Cashback said:

Descrabled said:

Just to add that I believe all my bank accounts retry to pay SO and DD mid afternoon if there are insufficient funds available just after midnight.

They also send texts to inform you to add funds to the account.

With DDs, multiple attempts are made to pull the money out of the account up until the cut off point, usually around 1430-1500. If enough funds are not received by cut off the DD will be reversed and fail.
SOs, because they are pushed operate differently and many banks try once and once only
EG. LBG platforms push SOs out at between 0020-0040 each night Mon-Fri (not PH) and if there are not enough funds in the account they simply won't go. There are no further attempts to push.

Lloyds Bank's Personal Banking Terms and Conditions states that they will try to pay failed Standing Orders again after 2.30 pm.  See page 6, under: "Payment of standing orders and future dated payments"
https://www.lloydsbank.com/assets/media/pdfs/current-accounts/personal_banking_terms_and_conditions.pdf
Payment of standing orders and future dated payments We make payments from your account shortly after midnight at the start of the due date. If your payment date falls on a non-working day, then we will try to collect your payment the next working day. If you don’t have enough funds in your account at this point to make a payment, we will try to make a payment again after 2.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment.