Need guidance

Hi. I am I guess what you can call it a part time monzoer at the moment. I get paid on the same day every month into my other account and manually transfer money to pay Bills from my monzo account the day after. I was to set a transfer up to cover Bills but…

If I set transfer say on the pay date 10th what if funds have not gone into other account before it tries to transfer. Or would other account wait for the funds before transferring it? Hope I am making sense😁

Bill’s paid on the 11th.

Hi JoJo, welcome to the community!

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So you are getting at the account not having received your salary/payment into it before the scheduled payment out?

That would be instructed and actioned from that end - the other bank - so depends on whether you have sufficient funds there or an overdraft

If not, the payment may fail

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Hi thanks for your message.
The salary goes in every month the same date without fail. The 10th. If I set a transfer from other account to monzo account for 10th …I was thinking like is salary paid in at 4am and funds transfer at 2am. So it’s just a case of time - I have no OD facility. I am feeling I might be best to keep manually transferring just in case.
If it was a Standing Order from other bank to Monzo perhaps other bank would wait for funds to hit before initiating the transfer. Hmmm

Standing orders usually come out early in the morning. Assuming you are paid by BACS, I think it also comes out early in the morning. It would be too close to call to say which would happen first and maybe dependent on your bank. Unless you have an overdraft that can cover the payment I would either move the day your bills are paid or CASS switch to Monzo.

It’s also worth noting that you may end up with issues of your payday falls on a weekend etc.

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Sadly no banks are this sophisticated. The transfer will be attempted at the same time, regardless of how much you have in your account.

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Thanks both. That’s what I was thinking…
I will either look for future of having salary go into Monzo and continuing with manual transfer later in the day for the 10th for now.
Thanks for your time.

Just be aware that Faster Payment transfers, which are usually instant, can take up to the end of the following business day, so in a rare circumstance you might find your debits from Monzo bounce anyway, should that happen.

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Yes your right. Never happened yet but there is always the possibility. I have 2 options. Having salary paid into monzo or changing all my standing order dates. The first seems the easiest option.
Thanks for pointing that out.

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I would suggest setting payments to the 11th

There is one I have the same day as my salary and have never had an issue. Both happen overnight but in the right order

I would strongly advise against doing this. From personal experience with older banks (NatWest and HSBC) they’ll attempt to execute the payment regardless of funds, and then charge you for an un-arranged overdraft.

You can normally get the charge refunded if you complain. But I would personally recommend you leave a day between pay day and any standing charges you have setup.

You’ll be glad to know at Monzo we’ll send you a notification the day before, and your payment will just fail (no charges), unless you have an arranged overdraft. Additionally if your overdraft is repaid by the end of the day we won’t charge you for using your overdraft.

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What you also need to be aware of, is the difference between manual Faster Payments (FP) and automated Standing Orders (SO).

This is why I moved from legacy bank to Monzo for my procedure to work.

Manual FP will leave your account at the time you instruct it. As said previously, while most arrive almost instantly, some take a bit longer

Automated Standing Orders though, in my experience with Nationwide and Santander anyway, leave on the date, or the next working day if a weekend or bank holiday.

So, if you set up SO to leave on 11th, hoping to pay a bill on say the 12th, if the 11th is a Saturday, the SO may not be processed until the 13th, and the DD, due on the 12th, will also be deferred to the 13th, leaving you back to the situation of at what time the credit or debit takes place.

If you have DDs that close to income day, may be worth trying to move them.

As a matter of curiosity though, if your bills (assuming DDs) come out that close to income day, why not just have them paid from your income account.

I don’t know how you work your finances, so your method may have a sound rationale behind it, or suit your own purposes. not judging

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