Direct debits and standing orders going out the same day salary is paid in? Charged overdraft fees?

jimjames

Not sure if it's just Bank of Scotland or my account by DDs are paid even if going overdrawn and you get a message to let you know to pay money in by 2.30pm to avoid charges. If your salary is being paid in the same day then there will be no issue. I only keep a minimal balance so the remainder can be in savings account getting interest.

wiseonesomeofthetime

I get paid on 1st and all my DDs are paid on the 1st, so by the time I wake up on the 1st, I know all bills are  paid and what is shown in my account is mine for the month.

I am with Monzo, however, so, as previous poster has stated, my income always arrives at 01:00, my DDs departing couple of hours later, and my SOs by the time I get up.

The Monzo app shows me my incoming BACS at least the day before too, so, in the event that it is missing, I know that there may be an issue and transfer money in to cover DDs until all resolved. Only happened once in my life (so far).

born_again

penners324 said:

I have salary in on last day of the month (my company pay by faster payment, so it's always last day of the month). All DDs go out on the 1st.

Which is fine, till as has happened a couple of times. Your banks systems go down or employers go down & wage does not come in. 
Yes you get compensated & no charges. But it is a PIA. 
Better with a week.👍

zagfles

SouthLondonUser said:

If I have my salary paid into my bank account via BACS, can I have standing orders and direct debits going out of the same account on the same day?

Or is it best to ensure payments go out at least 1 day later?

Basically the question is twofold:

1) Can I be in a situation where, say, the payments go out at 8.00am, the salary gets paid in at 10am, so the payments would fail if I don't have enough money before the salary gets paid? or does this depend from bank to bank

2) If instead I have an overdraft agreed, would I be charged for the overdraft? Do banks charge for an overdraft which gets repaid on the same day? Or is it one of those how-long-is-a-piece-of-string questions, before each bank can have wildly different terms?

Thank you!

You shouldn't get charged overdraft fees, but if your overdraft isn't big enough then the payment might fail, and there might be a cost there (either from your bank or whoever you're paying).

So it's worth having an overdraft even if you don't need to borrow, to cover this situation and to stop payments bouncing eg if an incoming payment is late. My employer once paid late due to a problem with their bank, but none of my DDs failed because my overdraft was big enough.

zagfles

born_again said:

penners324 said:

I have salary in on last day of the month (my company pay by faster payment, so it's always last day of the month). All DDs go out on the 1st.

Which is fine, till as has happened a couple of times. Your banks systems go down or employers go down & wage does not come in. 
Yes you get compensated & no charges. But it is a PIA. 
Better with a week.👍

Or just have an arranged overdraft of a decent size. Then the worst case is you get charged a small amount of interest if a payment is a few days late, which you should get refunded if eg your employer paid late, or if they didn't pay enough. Payments will still go through so you don't have the hassle of bounced DDs.

Descrabled

Retired 20 years and my pensions, excepting state pension, all are paid into various accounts on 1st of the month or Friday before. All standing orders and direct debits are dated 1st of the month. In 20 years it has worked.

Mind you I get inundated by texts and emails warning about being overdrawn every month. I make every penny earn interest. This is a money saving forum!

Bigwheels1111

First Direct only charge if balance has not been corrected by 23.45pm.
An ISA payment went out while I was waiting for the form to sign.
FD system looked at my accounts and could see the 6k in my savings account.
So allowed the payment, when I checked my account first thing and transferred savings to current account all was ok.
No fees.

Nebulous2

Nationwide annoy me. I do my money shuffle on the 1st of every month - generally in the middle of the night if I waken up. At the latest by 7 o'clock. Then mid-morning I get a text from them saying there isn't enough money in my account and I need to pay in by 2.30pm to ensure all payments are made, up to 10 hours after the money has been put in. 

Lumiona

I like a 3 day buffer in between just in case, I've worked in Accounts for 20+ years and all sorts of things can possibly go wrong with payroll / banks. Best to have a day or 2 grace where you can organise alternative funds if need be.

jimjames

zagfles said:

SouthLondonUser said:

If I have my salary paid into my bank account via BACS, can I have standing orders and direct debits going out of the same account on the same day?

Or is it best to ensure payments go out at least 1 day later?

Basically the question is twofold:

1) Can I be in a situation where, say, the payments go out at 8.00am, the salary gets paid in at 10am, so the payments would fail if I don't have enough money before the salary gets paid? or does this depend from bank to bank

2) If instead I have an overdraft agreed, would I be charged for the overdraft? Do banks charge for an overdraft which gets repaid on the same day? Or is it one of those how-long-is-a-piece-of-string questions, before each bank can have wildly different terms?

Thank you!

So it's worth having an overdraft even if you don't need to borrow, to cover this situation and to stop payments bouncing eg if an incoming payment is late. My employer once paid late due to a problem with their bank, but none of my DDs failed because my overdraft was big enough.

It might depend on your account status or credit history I guess but I have no overdraft and I've not had a payment failed due to insufficient balance, it just takes me overdrawn until I pay the money in that day.