Wire Transfer, Direct Debit & Standing Order

Automated transfer of funds to and from an account can be authorised to occur without the account holder's physical presence by way of wire transfer. Wire transfer can be set up in-branch, online and by telephone. Wire transfer between accounts within the same institution can be instantaneous, whereas transactions between institutions usually utilise Bankers Automated Clearing Services (BACS), which has a minimum processing time of three working days (including the day that the payment was sent). The Clearing House Automated Payment System (CHAPS) is similar, although payments incur charges in return for same-day transfer and clearing of funds (see Limits, Fees & Charges).

A direct debit is an instruction to your bank or building society to allow a third party to collect regular payments from your account, perhaps to pay a bill. Although some banks and building societies do not allow you to use a direct debit agreement in conjunction with your savings account, others will allow you to use this service. If you have set up a savings account in order to enable you to save regularly for your household expenses, you may be able to authorise direct debits which enable your electricity and telephone providers to collect the amount owing to them from your savings account each month.

In contrast to a direct debit, a standing order is available to set up recurring payments of an equal amount. This can usually be authorised by the usual methods: in-branch, online or via telephone banking for example. Standing orders can prove useful, for example when transferring a regular amount of your salary into your savings account each month from your current account, or when a third party wishes to make regular deposits to your account. Most banks will not allow outgoing standing orders, that is, a regular transfer out of the savings account itself.