I’d like to completely do away with my Halifax account of 12 years and switch fully to Monzo, however my one concern that I’ve saw a few comments on is regarding direct debits being taken out on the same day I get paid.
All my DD are set up to come out on the 1st of each month when I get paid, I prefer it this way and some companies only offer this day or a day mid way through the month.
What is the current situation with this arrangement on Monzo? Do I risk some DD getting declined if they try to take money from my account if they procees them just before my wages go in?
Yes that does seem to be the case but a number of people have raised this issue so perhaps they will change the order they process stuff in. Let’s hope so.
I think Monzo will be just what you want. In time, I believe they will offer a pot that will contain your projected direct debit amounts (probably automatically based on previous patterns) and will then debit from this pot, so you won’t have to micro manage your finances.
I would hold off until this is fixed or overdrafts are available. It happened to me.
Luckily my wife and I have recently switched all our direct debits to our joint account so I only have a few charity payments and pension stuff. But it had the potential to really cock things up.
I meant the order in you transaction feed should allow you to determine whether this functionality works as intended. I wan’t besmirching your ability to read a forum thread
I did empty my account - and am pleased to report that my direct debits went through fine.
Timestamp on my pay going in is 0100, DDs going out is 0200.
I don’t know enough about the internal workings, but I believed that the money is allocated and ‘sent’ to the account but then kind of queued up until a certain time that the bank processes everything.
Interestingly, my pay used to go in at exactly 0000 (midnight) with Starling. I work mostly nights and I’d get the notification dead on midnight every pay day.
With the number of accounts now well over 100,000, even if a small proportion of those transfer their wages and direct debits and a smaller proportion of those have DDs on payday - Monzo could possibly be facing a huge barrage of complaints and potential leavers within the month.
Maybe Monzo should change it to 5am or 6am but what if someone only gets paid at 7am? My point is that surely Monzo can only cater for those who are paid by that day, not during that day itself?
Wage payments are overnight, I’ve never been paid later than about 3:30am. 6am should cover all eventualities.
If this was out of the ordinary then I’d agree. But every other bank that I’ve ever been with - direct debits on payday have been totally fine, it’s never been a problem. Which is exactly what makes it such a big problem here.
Monzo will be just what you want. In time, I believe they will offer a pot that will contain your projected direct debit amounts (probably automatically based on previous patterns) and will then debit from this pot, so you won’t have to micro manage your finances.
Bacs credits are processed before direct debits on the same day.
