 |
|
 |
Direct debits
Direct debits and Standing orders.
Direct debits.
A direct debit is an authority that gives an organisation permission to withdraw money from your account to pay for certain goods or services. This payment is normally repeated on a regular basis – often monthly or quarterly – but the amount and day the money is taken can vary.
The organisation will send the written authority to your bank, who will then arrange for the payments to take place for you.
Direct debits are normally used for paying bills such as electricity or phone bills, or making repayments for goods you have bought, or loans that you have taken out. Many companies offer a discount when you pay them by direct debit, so it can be a bonus if you pay for things this way.
You can only pay an organisation, not an individual, with a direct debit. Although there is no age restriction on using them, you are unlikely to use this service if you are under the age of 18. This service is normally only available if you have a current account.
Standing orders.
A standing order is an authority that gives your bank the authority to withdraw money from your account, and pay the money into an account in another person or organisations account.
A standing order is very similar to a direct debit except that you can pay the money into an individual’s account, as well as an organisation.
The payments can be made on a regular basis – normally monthly, quarterly, or even yearly – and is a handy way of paying for things such as rent, student fees, and other regular payments.
There is no age restriction on using a standing order, but the service is normally only available if you have a current account.
If, for any reason, you need to cancel either your Direct Debit or Standing Order arrangements, you should contact your bank. You should also notify the company or person that the money is paid to of your intentions to stop the payments.
back
|
 |
Search
