When is a regular Saver not A Regular Saver. 30 October 2004 at 1:02PM in Savings & investments 6 replies 1.2K views

Robert_Sterling_3

When you set up a standing order to save money regularly from the 28th of each month.
Sometime you end up with no payement one month and two the next.
Hard Cheese.

Based on G Gilmore in The Times.

Unbelievable_2

Both the Halifax and Abbey stipulate that the standing order must be dated earlier than the 28th of the month to avoid this problem.

Milarky

Just looking at Judi's question on another thread I'm surprised these two accounts couldn't as easily be set up to be funded by direct debit [like ING is].

If this was done they couldn't 'mess up' the regular deposits provided you kept enough in your bank a/c come the collection dates. And the added advantage would be no lost interest for the two or three days that Standing Order payments take to reach these accounts.

[Now tell me I'm 'daft', and that the best way to run these accounts is NOT for the customer's convenience.]

Robert_Sterling_3

It had not occurred to me that anyone wuld not do it by direct debit.

MarkyMarkD

It had not occurred to me that anyone wuld (sic) not do it by direct debit.

DD is not an option, so I don't know how you would have imagined anyone would have done it by DD.

Apart from the 2 day money transmission delay on a SO compared to a DD, I can see why they do not allow DD as well.  If they did it by DD, it would only cause problems if the funds were not there - the customer would strop about being charged by their bank for a bounced DD, etc.  As it is, they are allowing you the flexibility to NOT make a payment if you do not have the funds - although, then, of course you will lose your premium rate of interest.

Both the Halifax and Abbey stipulate that the standing order must be dated earlier than the 28th of the month to avoid this problem.

Abbey actually specify 21st or earlier.  Our acceptance arrived today

cloud_dog

We (in my wife's name - no tax) are waiting for confirmation, and will then set up an electronic transfer from our Abbey current account into the FRMS account.

cloud_dog

ic

My guess is that they want people to miss the monthly payment - that way you've broken the t&c's of the account and forfeit the months (in the case of Abbey) or the whole terms (in the case of Halifax) interest, and only get a pittance rate instead. If it were direct debit, it'd be there fault if a payment didn't happen, whereas they have no responsiblilty whatsoever with the standing order...