Setting up standing orders intro regular saving accounts 20 January at 7:10PM in Savings & investments 11 replies 622 views

NewSaver2022

I've recently set up a number of regular saving accounts, which I plan to pay into each month.

I need to set up a number of standing orders from my main current account - however had a couple of questions:

1. When I opened the savings account with First Direct for example, I had to create a current account with them first. I was also required to create a standing order from the First Direct current account, into the First Direct regular saver. Can I only pay in via standing order into the regular saver through the first direct current account, or can I cancel that standing order and set one up instead from my main current account (with a different bank)?

2. I opened the saving accounts just after the start of the month (for example 10th of the month). Can I pay into the account from the 1st of the month going forward, or is each 'month' only from the 10th (for example the regular savers expire on 10th January 2024).

Thanks in advance for your help!

grumbler

1. I don't see why not. The account has a number and a sort code and the conditions say just 'standing order'.

2. This depends. Usually it's a calendar months, but not for all accounts. In the latter case you, most likely, cannot make monthly topups from another bank.

Vortigern

1. First Direct RegSavers must be fed from the First Direct current account. You can't change the date of the SO either. Leave it as it is.

2. Usually calendar months, sometimes a statement month or "monthiversary". You need to read the terms & conditions.

Most regular savers, except first direct and HSBC, can be fed by standing order from an external account.

flaneurs_lobster

Each regular savings account will have it's own rules on how it can be funded. In the case of the First Direct Regular Saver it can only be funded by standing order from the 1st Account. You can set up a standing order from your main current account to transfer funds into the 1st account, not directly into the saver.

Again, in the case of the First Direct Regular Saver the funding day each month is set when the standing order is set up (by the bank) and can't be moved. The maturity date is exactly 12 months after the first fund date.

All this information is on the website

https://www.firstdirect.com/savings-and-investments/savings/regular-saver-account/

 

grumbler

flaneurs_lobster said:

All this information is on the website

https://www.firstdirect.com/savings-and-investments/savings/regular-saver-account/

And, more specifically, in  Account Terms and Conditions and Charges (PDF, 111KB)

I was lazy to look through all 44 pages - and I stand corrected...

You’ll then need to make 11 more payments by standing order from your 1st Account up to the Maximum Monthly Balance.

p.37

Hattie627

I have a follow-up question about the First Direct RS.

My FD RS has a payment date of 29th. There is no 29th this February, so presumably the payment will go on 1 March. Will this mean that no payment will be possible on 29 March, or will the 1 March payment be treated as having been made in February? 

I can't change the payment date which was determined when I opened the account. With the 7% interest rate, I would prefer not to miss out on a month's payment. The account matures on 28 or 29 May.

grumbler

Just have the money available in the current account on the 28th and don't worry.

where_are_we

Grumbler is correct - I had a previous FDRS with a very late in the month payment date and the February and March payments were honoured.

NewSaver2022

I'm glad I asked - some great information, thank you all.

For the Regular Savers which are open to all - specifically Principality Building Society and Halifax - are there any conditions regards when you should pay into these accounts (again would like to set up a standing order for the start of the month, however opened them in middle of the month, so not sure if I can pay into it on the 1st going forward).

I've looked at the T&Cs for both but wasn't obvious if this was the case.

flaneurs_lobster

For the Halifax Regular Saver, the "Summary Box" says: 

• You can save £25 - £250 every month by one standing order or a bank transfer. This needs to reach your account before the 25th of the month. You can also make a bank transfer to top up your savings as long as the total amount of your deposits does not exceed the monthly limit of £250. The amount that you save each month can vary but needs to stay between the £25 to £250 monthly limit. 

flaneurs_lobster

The Principality 1 Year Regular Saver Bond (if that's the one you mean) is worded such that you don't have to make a deposit in any one month at all, but if you do the total can't exceed £250. No cutoff is mentioned. 

I'd just set up SO's into these accounts for the 1st of the month as you proposed.