How do banks alert you about a risk of a regular payment having insufficient funds?

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  • gwapenut
    gwapenut Posts: 1,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thanks everyone, it seems that if I left my bouncy standing orders intact until tomorrow, I'd start to see some alerts. I'm not going to do that because I don't want to deliberately bounce.

    I'm particularly thankful for confirmation about how LBG because Lloyds is my main current account.

    As an aside, ignoring high interest current accounts, the only savings account provider I've found so far who allow you to set up a regular monthly payment out with no further interaction needed is Skipton. They also have the benefit of same day transfers, unlike some building societies who send it the next day.
  • I am with HSBC. If I have insufficient funds - the SO will still go out, and I will get a text from HSBC to say that I have gone into an unarranged overdraft - if I credit the balance by 23.45 that day, I do not incur a fee. 
  • gwapenut
    gwapenut Posts: 1,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Here's a link to a MSE article on it. It's old, but a bank on it won't now stop retrying, and also it lists the cutoff times back then.

    https://www.moneysavingexpert.com/news/2014/08/payment-bounced-youll-soon-have-a-second-chance-to-avoid-fees/
  • I am with HSBC. If I have insufficient funds - the SO will still go out, and I will get a text from HSBC to say that I have gone into an unarranged overdraft - if I credit the balance by 23.45 that day, I do not incur a fee. 
    Had the same with NatWest - Standing Order I’d forgot to cancel which was set up to pay a regular saver (also NatWest), SO still went out and I was sent a text asking to pay into the account same day to avoid incurring fees
    Moo…
  • etienneg
    etienneg Posts: 562 Forumite
    Part of the Furniture 500 Posts
    gwapenut said:
    As an aside, ignoring high interest current accounts, the only savings account provider I've found so far who allow you to set up a regular monthly payment out with no further interaction needed is Skipton. They also have the benefit of same day transfers, unlike some building societies who send it the next day.
    I understand that Charter Savings Bank allows you to set up a standing order to transfer a fixed amount each month from its Easy Access savings account (currently paying 3.05% pa interest) to your nominated account. I don't have actual experience of this, as I don't currently have an account there. I was considering it as a possibility a while ago, but rejected it then as their rate was lagging too far behind others; it's now somewhat better!
  • badger09
    badger09 Posts: 11,544 Forumite
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    On 1st of every month around 11.30, I get an alert from Nationwide that there is insufficient in my account to cover an SO for £125 & I have until 14.3 to rectify this. 
    This is despite the fact that £1050 is deposited on the same date, and always appears before 08.00. 
    I assume it’s because Nationwide start their payments run sometime overnight but for some reason alerts are sent later. 
  • redux
    redux Posts: 22,976 Forumite
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    edited 21 March 2023 at 4:16PM
    gwapenut said:
    Thanks everyone, it seems that if I left my bouncy standing orders intact until tomorrow, I'd start to see some alerts. I'm not going to do that because I don't want to deliberately bounce.

    I'm particularly thankful for confirmation about how LBG because Lloyds is my main current account.

    As an aside, ignoring high interest current accounts, the only savings account provider I've found so far who allow you to set up a regular monthly payment out with no further interaction needed is Skipton. They also have the benefit of same day transfers, unlike some building societies who send it the next day.
    You might arrange things so that the bank's out payments are on slightly different days, and that an amount coming out is within an agreed overdraft arrangement

    Then you'd get the warning, and be able to add back funds before the end of the day, and the overdraft would count as not having happened, so wouldn't incur charges


  • penners324
    penners324 Posts: 3,486 Forumite
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    Starling sends a notification the day before to say you insufficient funds to meet the following days withdrawals
  • gwapenut
    gwapenut Posts: 1,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 21 March 2023 at 6:38PM
    Starling sends a notification the day before to say you insufficient funds to meet the following days withdrawals
    Damn, that's an account I switched out years ago. It sounds like they're the only ones who warn you in advance, which is what I was wanting!
  • TSB have a feature that sweeps money to your current account from a savings pot if the balance goes below a certain threshold. So it’s kind of like an overdraft but from savings. 
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