Incoming and outgoing payments on same day (brief dip into overdraft?)

Larches

Firstly, I wouldn't be at all surprised if this has already been covered somewhere on this forum, so apologies if my thread-hunting skills aren't up to scratch.

Like many MSE folk (is there a name for us?), I have a couple of current accounts with payments going back and forth to satisfy the criteria for the accounts (e.g. must pay in £x per month). I'm trying to fine-tune the dates on my standing orders as I nearly slipped up with one payment not arriving due to the payment date having landed on a non-working day. What I'm wondering is whether I can get away without having a day's grace for each transfer between accounts. For example:

• 26th of month - salary arrives in account A
• 27th of month - pay funds to account B via standing order

... but depending on weekends and bank holidays, that 27th payment may not actually happen until (at worst) the 30th. So if I assume the worst, can I then do this?

30th of month - assume funds have arrived in account B by now, and make outgoing payment from account B using those new funds that just arrived.

One bank tells me that funds would have to arrive by 2:30pm in order to use those funds the same day, which may normally happen but also may not be guaranteed, so it's safer to set up any scheduled payments for a day later. But I'd rather avoid that extra day, as it causes problems with transactions that follow on from this.

So what I'm hoping someone might be able to tell me is:

1. What are the chances of my funds NOT arriving in account B by the 2:30pm cut-off, and
2. Are there any significant consequences from technically dipping into overdraft purely within a day (if outgoing happens before incoming)?

On that 2nd point, the bank tells me that no overdraft charges would apply as long as the account is back in balance by the end of the day, but I just wondered if there are any other considerations, e.g. it being noted somewhere that the account was (albeit briefly) overdrawn.

I hope this all makes sense. It's hard work, this money-saving business.   Thanks in advance for any advice.

eskbanker

It would be best to be specific about exactly which banks you're referring to, as they're not all the same....

Larches

eskbanker said:

It would be best to be specific about exactly which banks you're referring to, as they're not all the same....

Account A = Nationwide, Account B = Lloyds.

Thanks

NottinghamKnight

Personally I would (and do) leave a couple of spare days (3-4 days in total) on transfers into and pout of low balance accounts, I'm not too bothered with the CRA issues but charges could wipe out a few months of the benefits from having multiple accounts.  

Larches

Yep, I'm coming to that conclusion - best play it safe. Thanks.

datlex

I would recommend that you separate out funding requirements and income.  You don't have to fund it in one go.  You can do it weekly.   Create yourself a weekly funding circle between your account.  It should more or less self manage.  

surreysaver

I manually move the money. I like to check its gone in anyway, so may as well log in and do the check and move the money at the same time 

J_B

Today at 08.30am I noticed my Nat West A/C was O/D, so, I immediately paid money in to take me back into credit.

Around an hour later, I had a text saying I was "about to go into arranged overdraft" ........then another text at 1.31pm saying that the account went into O/D at 06.31

Hmmm