How to set up a stand­ing or­der

The Punch - - PERSONAL BANKING -

As­tand­ing or­der is a way of set­ting up a reg­u­lar, fixed pay­ment from your bank ac­count, ac­cord­ing to mon­ey­facts.co.uk

You can set a pay­ment to be taken at a cer­tain fre­quency (for ex­am­ple, the first of each month) and for a set amount of time, such as six months. Your pay­ments will con­sist of money set at an amount cho­sen by you.

You can nor­mally set up a stand­ing or­der by com­plet­ing a stand­ing or­der form and giv­ing it to your bank or set­ting up the stand­ing or­der in branch, over the phone or us­ing on­line bank­ing.

The dif­fer­ence be­tween a stand­ing or­der and a di­rect debit

Es­sen­tially, a stand­ing or­der is an in­struc­tion to your bank, whereas a di­rect debit gives per­mis­sion to a com­pany to take money from you. You are the only per­son who can change the date or pay­ment amount on your stand­ing or­der. This is the main dif­fer­ence to a di­rect debit, where these de­tails can be changed by the per­son or or­gan­i­sa­tion you are pay­ing.

What if I don’t have enough in my bank ac­count to pay a stand­ing or­der?

If there is not enough money in your ac­count to pay a stand­ing or­der, you may be able to take ad­van­tage of a buf­fer zone, if your cur­rent ac­count has one. This is ba­si­cally a small in­ter­est-free over­draft that your bank won’t charge you for if you creep into it.

Ex­ceed the buf­fer zone and your bank or build­ing so­ci­ety may not pay the stand­ing or­der, and they may charge you a fee or your ac­count will go into an over­draft if you have one ar­ranged. If pay­ing a stand­ing or­der pushes you into an unau­tho­rised over­draft, you may have to pay ad­di­tional charges as well.

If you know be­fore­hand that you won’t have enough money in your bank ac­count, the best thing to do is ar­range a tem­po­rary over­draft with your bank to pay the stand­ing or­der.

Al­ter­na­tively, you could try to ne­go­ti­ate a later pay­ment date with the per­son in ques­tion.

If you miss stand­ing orders reg­u­larly, you should con­sider chang­ing pay­ment dates or pay­ing by a dif­fer­ent method

How long does it take for a stand­ing or­der to reach the re­cip­i­ent?

Stand­ing orders can be made us­ing the faster pay­ments ser­vice which means the pay­ment can be re­ceived the same day, or the next work­ing day if the pay­ment is made on a week­end or bank hol­i­day. If your bank does not use faster pay­ments, it takes three work­ing days for a stand­ing or­der pay­ment to move from one bank ac­count to an­other.

How do I can­cel a stand­ing or­der?

You are the only per­son that can can­cel a stand­ing or­der. You can can­cel a stand­ing or­der at any point in branch, over the phone or via se­cure on­line bank­ing. How­ever, make sure you in­form the per­son or or­gan­i­sa­tion in re­ceipt of the pay­ment be­fore you do, as you could in­cur fees or penal­ties for non-pay­ment. Re­mem­ber that if you don’t pay a bill on time, this could also af­fect your credit rat­ing and ap­pear on your credit file.

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