Direct debits for bank switching deals and rewards, by Be Clever With Your Cash on YouTube. 12 min 58 s.
- Video length
- 12 min 58 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 8
What you need
Steps
Check the terms of your switching deal or reward account first. Note how many active direct debits it needs and whether they must be a minimum amount or paid monthly.
Set up a direct debit to pay a regular bill, such as energy, water, mobile, broadband or council tax. Most providers let you do this in your online account.
Pay off your credit card by direct debit. Log in to your card account, choose the direct debit option and set it to pay the full balance each month.
Link a direct debit to PayPal. In PayPal, go to your wallet, add your bank account and confirm it, which sets up a direct debit mandate.
Use a prepaid travel card such as Currensea, which collects its monthly fee or top-ups by direct debit from your bank.
Set up a small monthly donation to a charity by direct debit. Pick an amount you can afford and keep the confirmation for your records.
Open a savings account that accepts direct debit deposits, such as a regular saver, and set a monthly payment from your current account.
Add a monthly direct debit to an investment or stocks and shares account if you want to invest. Only do this with money you can leave invested.
Tips and common mistakes
A direct debit must be a real recurring payment, so check the deal's rules on active mandates before relying on one.
Keep enough money in the account to cover each direct debit, or you may be charged and the payment could fail.
Cancel any direct debit you set up only for a deal once the qualifying period ends, if you no longer need it.
Questions
What counts as an active direct debit?
It is a live direct debit mandate that has collected at least one payment. Some banks want a payment in the qualifying month, so check the exact wording of the offer.
Can I use a standing order instead?
Usually no. Most switching deals and reward accounts specify direct debits, and a standing order is a different payment type.
Will setting up extra direct debits hurt my credit score?
Direct debits themselves are not recorded on your credit file. Missed payments or unpaid bills can affect your score, so keep the payments covered.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
