Question about Monzo and Direct Debit dates


#1

Apologies if this has already been covered. One thing I love about Monzo is that as soon as I spend on my card, it’s on my statement. No pending amounts for days like other banks.

I’m in the process of going full Monzo. My question is - with Direct Debits, will they be taken from my account as soon as the company requests them or will they come out on the due date. For example, most of my Direct Debits come out on the first of the month but I can usually see them all pending to come out the day before on First Direct. Would these come out early, as soon as they are requested, possibly causing some to be unpaid? I get paid on the first of the month, so rely on Direct Debits not coming out earlier than that so that everything is covered.

Just want to check before switching everything over. Thanks.


#2

They should come out on the day the Direct Debit agreement/instruction tells them to. So the due date, to be clear.

I believe banks receive the instruction the day or a few days before but they don’t actually take the money out until the day you are told when you set it up.

Time wise, DDs come out at 2:00am on the day they are due and money is put into your account (payday for example) at 01:00am.


(MikeF) #3

They’ll go out on the usual date as long is the money is there to support them. You won’t see them in the feed a day early yet although I believe they’re working to wards incorporating that feature too.

From memory, incoming monies are processed at about 1am and DDS and other outgoings at something like 3am so as long as the income arrives on the correct day there shouldn’t be a problem.


#4

Thanks. I just wasn’t sure if they’d work in the same way that card payments do on Monzo - as in, they don’t technically ‘pend’ and will just come out as soon as the request is put through by the company.


(MikeF) #5

They did that for a while in the early days I think (certainly incoming and maybe outgoing too?) but that hasn’t happened in a long time now.


#6

Thanks, that’s put my mind at ease a bit. Just wanted to be sure before switching things like my mortgage etc over.