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Direct Debits from a savings account

Last post Wed, Jul 18 2007, 2:26 PM by gemmatt. 6 replies.
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  •  Wed, Jul 18 2007, 2:26 PM

    Re: Direct Debits from a savings account

    You can pay Direct Debits from Natwest's First Reserve savings account!! Not very good interest rate though.
    • Post Points: 5
  •  Wed, Jul 18 2007, 1:25 PM

    Re: Direct Debits from a savings account

    My guess is that you are trying to get the highest rate from the cash that you are keeping in a savings account. My suggestion is that instead of trying to maximise your savings in one account with one provider and use another for your card, it makes sense to bring all your financial transactions under one roof and, where necessary, manage them online.

    First off, you should be looking to a credit card like the Post Office or Nationwide ones, which do not charge a 2.75% fee every time you make a purchase abroad. That alone is worth a small fortune if you are travellign abroad for a whole year.

    Also, as it is likely that you will be making cash withdrawals using your card (unless you were planning to keep a current account to do that from) it is useful to know that Nationwide's "payment hierarchy" allows you to pay off your most expensive debts first - cash withdrawals - unlike most other credit card providers.

    With Nationwide, you can also view credit card/bank account/savings account statements online, which means you could transfer money between the various accounts every month to settle card debts.

    OK, their savings rate is not the highest at 5.5% AER. So if you prefer a higher rate, another option might be to keep an online savings account wherever you want (as long as you can switch money out of it online). You then set up a current account and a credit card with Nationwide. Once a month you check your credit card bill and transfer the money to Nationwide's current account. from there, a direct debit pays off the crtedit card bill.

    You still have to log on to your credit card and savings accounts once a month, but that's not too much hassle, is it? Ten minutes well spent...

    Or, if you want, you can view a credit card statement from Nationwide and transfer money directly to it from your savings account. You choose...

     

    • Post Points: 5
  •  Mon, Jul 16 2007, 11:50 AM

    Re: Direct Debits from a savings account

    How about using the above method of transferring from Savings into a current Account.  By getting an account with somebody like First Direct then should you not be able to access the internet, then you can always call them 24x7 and instruct them that way.
    • Post Points: 20
  •  Mon, Jul 16 2007, 11:18 AM

    Re: Direct Debits from a savings account

    PS.....if you used an online bank such as Cahoot you can keep your funds in their savings account and then transfer it instantly (online) to their current account to cover the direct debit...and no monthly input neccessary
    • Post Points: 5
  •  Mon, Jul 16 2007, 11:14 AM

    Re: Direct Debits from a savings account

    look into nationwide all transactions useing your card abroad does not incur any charges.
    • Post Points: 5
  •  Mon, Jul 16 2007, 11:14 AM

    Re: Direct Debits from a savings account

    I'm pretty sure there aren't any savings accounts with direct debit facilities, why not use one of the high interest current accounts (search this site for the best ones) although you may find the highest interest ones require a monthly input.......
    • Post Points: 5
  •  Mon, Jul 16 2007, 10:58 AM

    Direct Debits from a savings account

    Hi

    I hope you can help me, later this year my husband and I intend spending 12 months travelling abroad. We would like to charge our living expenses to a credit card that we would then like to clear monthly by Direct debit from a savings account. Can anyone advise of an instition that offers a savings account that will allow the Direct debit facility?  We feel this would be our safest option as we may not always be able to access our accounts via the internet and our spending may amount to several thousand pounds. Or does anyone have any better thoughts?

    Can you help?

    • Post Points: 65