Standing orders on weekends

I had a bit of an issue this weekend, housemates s transfer me their portion of rent on the 14th from their legacy banks and I have a standing order to landlord on the 15th.

Now because these fell on Saturday and Sunday this month, the standing orders haven’t reached me, but because Monzo run them at weekends, the transfer has gone through and left me overdrawn.

Could there be a toggle to run standing orders like legacy banks? Or am I just a bit unique and this problem wont be useful to anyone else?

On the basis on previous comments on here about toggles and minimising them, I would think that such an option is unlikely

There’s no global technical reason why standing orders cannot work on weekends, as you’ve seen with Monzo, so really you’ve fallen into a gap between the older banking systems and this one

Best option for now is probably to get your friends to move their standing orders a day or two earlier so that it is more likely that theirs falls before a weekend if yours is on a weekend

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The irony here is your landlord’s bank probably won’t deal with the credit until tomorrow (or your legacy bank account wouldn’t have even sent the money on the weekend), meaning you could’ve paid a day late with no comeback.

Best to learn from experience and request your housemates send you their rent a few days earlier.

Good rule of thumb is never schedule transfers in within three days of a payment out, because of the quirks of the banking system in this country.

Yes, Monzo’s mission is to eliminate all this rubbish, but you are dealing with the High Streets here.

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I very much agree with the advice above, that you should have your housemates pay you in advance – i.e: their rent is due to have arrived to you by the 15th, which is the expectation for commercial payments – but for future reference, typically a tenancy agreement will declare the “late” period and usually it’s at least 7 days, meaning that you wouldn’t be due any penalties even if your payment was a few days late.

If I was in your situation I would simply cancel the ongoing standing order and make the payment every month manually once the money is in your account because there’s no adverse consequences for you if your flatmates transactions take a couple of days to clear – granted, depending on your tenancy[1], you might annoy the landlord a little, but worst case they’d choose not to renew your tenancy, you cannot be evicted for overdue rent unless you have months of arrears.

[1] Payments direct to a landlord are more likely to be used by the landlord to pay a mortgage, whereas payments via an agency are not so there’s less likelihood the landlord would even know.

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Thanks all for the advice, I’ll be asking them to transfer earlier from now on. I hadnt actually noticed Monzo standing orders run on weekends until this happened!

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Or suggest they switch to Monzo :wink:

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Yeah it always bothered me lloyds did not pay on the exact day I told it .

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That being said Monzo needs a feature to sort this for cash flow. I am paid by FasterPayments and my outgoing standing orders can fail if I am paid next working day. Banks should always pay previous working day IMHO, US banks do.

They can’t with faster payments as it’s paid as soon as it’s sent

They have no prior notice. The payer should be scheduling it to be sent on time or the previous working day

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What I mean is if I tell Lloyds to pay XYZ on 3rd of each month, if the 3rd is a Saturday, Lloyds won’t pay it until the 5th. Lloyds should pay it the 2nd if it only pays Working days or pay on Sat the 3rd. IMHO.

All US banks that I know off always pay working day before, if the payment date is a weekend or Holiday otherwise it would be late.

At least Monzo pays on time. However due to my wages coming in working day after, Monzo should have an option to pay only on working days like the legacy banks to avoid cash flow issues.

All the UK employers I’ve ever come across always pay the working day before if payday is a weekend. Is this a bank problem or an employer problem?

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Bank. Legacy banks pay standing orders working day after. It is annoying but Monzo should have a means to compensate for legacy banks.

But how come your wages come in working day after a weekend? That strikes me as an unusual way to do it (not that it’s something you have control of of course :slight_smile:)

Because that is how legacy banks process standing orders.

I agree, this is the only employer I’ve heard of who doesn’t pay working day before a weekend.

As a rule of thumb over here it’s always been ‘money in = day before’, ‘money out = day after’ which generally allows cash flow to work. If an employer wants to do things differently I wouldn’t want to change the entire banking system to compensate.

Paying on demand would, of course, settle this once and for all.

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Is this a recent change to standing orders? I had one due to go out on the 30th November last year but didn’t leave my account till the 2nd December. So obviously Monzo didn’t process the payment over the weekend as what is being described above

SOs CASS’d in from another bank don’t go at weekends, I believe, to ensure they work as they always did. Could this be the case with you?

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Ahh that explains it, thanks. Might recreate that standing order then

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