Switching accounts / direct debits

peteques

Hi all,
Can I start with a poss stupid question please? What is the difference between a direct debit and a standing order please?
But the main reason for my post is this: I want to switch accounts from Natwest to Santander to claim a switching bonus. The Santander needs 2 active direct debits but my Natwest account does not have them. I though I could set up a nominal DD between 2 current accounts - is this possible please? If not what is the easiest way to set up a quick 2 DDs to enable me to switch please?
Thanks for any help,
Pete

[Deleted User]

A standing order is a "push" from your account to the receiver where you send it. A direct debit is a "pull" where they request the money. DD has the guarantee protecting it and transfers liability onto the receiver to take it.

You cannot use a DD between your own accounts

You could see if any of your standing orders could be changed, or move direct debits over. I am doing this at the moment.

A largely unused credit card and my phone contract are moving onto accounts I created for switching (I'm going to do the Nationwide and the Santander ones) along with a DD for Ecology saver that I just setup for the £25 a month - 1.4% is poor but it's not a huge amount and can be left for a while to get the interest. As soon as that is setup I will look to do the transfer, then move the DDs back to my main account

You don't need to leave the DD in place afterwards so if you have enough money for a couple of months in the sending/receiving account, do the switch and then move them off.

Alternatively there are options such as charity donations on low value DDs, auto savers like Plum etc. You can always cancel them after

[Deleted User]

Other suggestions:

Streaming services e.g. Spotify (note, NOW TV does not allow DD only CPA)
Memberships e.g. National Trust, gym etc
Subscriptions e.g. Graze or Beer 52
PayPal payments to yourself from your current account
Charity often do £1-2 a month though I have avoided doing this as 1) it's a profit cut and 2) the cost to them to administer means there are better ways of donating to them than using them for a few months
Ecology as above minimum £25 a month saver, I liked it as they pay interest in December and you can withdraw twice a year so setting up, fund it for £400 or so to cover you for this year and next and then take the money out in January 2024. Charity Bank does accept DD too but IIRC they want a bigger payment, Plum, Moneybox too. Scottish Widows apparently did / do DD minimum £10 a month to their instant saver. A riskier one is Park Christmas savings (not covered by FSCS) for £1.70 a month and they send you £20 M&S vouchers at the end of the 12 months

grumbler

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

[Deleted User]

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Sorry I thought it was clear based on the OP he wanted to bounce money between current accounts. You can certainly pay into savings accounts if the issuer accepts DD

EarthBoy

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Birmingham Midshires is closed to new customers.  

Daliah

EarthBoy said:

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Birmingham Midshires is closed to new customers.  

so are all others that accepted DDs. If the OP has any longstanding savings accounts, they can check whether they support DDs. Highly unlikely they do.

The easiest to solve the issue has already been mentioned: set up a couple of small DDs to a Charity etc, then delete the DDs once the switch is done. You can easily contain the amount spent, e.g. to 2 x £1, by setting up a DD that pays annually; so you have plenty of time to delete the DDs.

born_again

DD to national lottery is another option.
TV licence.

[Deleted User]

Daliah said:

EarthBoy said:

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Birmingham Midshires is closed to new customers.  

so are all others that accepted DDs. If the OP has any longstanding savings accounts, they can check whether they support DDs. Highly unlikely they do.

The easiest to solve the issue has already been mentioned: set up a couple of small DDs to a Charity etc, then delete the DDs once the switch is done. You can easily contain the amount spent, e.g. to 2 x £1, by setting up a DD that pays annually; so you have plenty of time to delete the DDs.

Ecology saver do, as does Plum (the DD was setup for me in about a day). Ecology take bloomin ages though, sent the DD form last week as they do it all on paper and still nothing. Hoping the EE one transfers a bit quicker so I can switch at least one account

Daliah

Deleted_User said:

Daliah said:

EarthBoy said:

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Birmingham Midshires is closed to new customers.  

so are all others that accepted DDs. If the OP has any longstanding savings accounts, they can check whether they support DDs. Highly unlikely they do.

The easiest to solve the issue has already been mentioned: set up a couple of small DDs to a Charity etc, then delete the DDs once the switch is done. You can easily contain the amount spent, e.g. to 2 x £1, by setting up a DD that pays annually; so you have plenty of time to delete the DDs.

Ecology saver do, as does Plum (the DD was setup for me in about a day). Ecology take bloomin ages though, sent the DD form last week as they do it all on paper and still nothing. Hoping the EE one transfers a bit quicker so I can switch at least one account

Ecology are only good for 1 DD, and - as you say - they take bloomin' ages to do anything. But I take your point. they are savings account people can still apply for now.

Plum savings I wouldn't touch as they are not FSCS protected. If you have a higher risk tolerance than me, they are an option.

[Deleted User]

Daliah said:

Deleted_User said:

Daliah said:

EarthBoy said:

grumbler said:

Deleted_User said:

You cannot use a DD between your own accounts

Things may have changed, but less than a year ago you could regularly top up some your savings accounts by a DD from your current account. Birmingham Midshires savings accunts spring to mind.

Birmingham Midshires is closed to new customers.  

so are all others that accepted DDs. If the OP has any longstanding savings accounts, they can check whether they support DDs. Highly unlikely they do.

The easiest to solve the issue has already been mentioned: set up a couple of small DDs to a Charity etc, then delete the DDs once the switch is done. You can easily contain the amount spent, e.g. to 2 x £1, by setting up a DD that pays annually; so you have plenty of time to delete the DDs.

Ecology saver do, as does Plum (the DD was setup for me in about a day). Ecology take bloomin ages though, sent the DD form last week as they do it all on paper and still nothing. Hoping the EE one transfers a bit quicker so I can switch at least one account

Ecology are only good for 1 DD, and - as you say - they take bloomin' ages to do anything. But I take your point. they are savings account people can still apply for now.

Plum savings I wouldn't touch as they are not FSCS protected. If you have a higher risk tolerance than me, they are an option.

£10 into the pot, a £2 DD and withdraw as soon as the switch is done, close the account after that, will just keep the Ecology, mobile phone and old credit card DDs as and when needed