savings accounts

ashagplz · 10 May 2008 at 20:50

just wondering why when you apply for an online savings account they require you to agree a direct debit mandate.

When i applied for the easy access account of the birmingham midshires i was suprised to see this. Why do they make you agree the form? They dont emtnion having to make regular payments in their advertising so why would they need this?

Mark A · 10 May 2008 at 20:52

I didnt have to with my direct saver. There is an option that allows you to which is handy for some. I just chuck some in when ever i can.

Energize · 10 May 2008 at 21:59

You use direct debit to pay into the account. At all times they need a direct debit setup so they can pay money back into your account if they decide to close it. You don't need to make regular payments with a direct debit.

ashagplz · 11 May 2008 at 10:09

but that only requires my bank details. They do not need a direct debit agreement which means they can take money out from my bank account without asking me.

James07 · 11 May 2008 at 10:12

ashagplz said:
just wondering why when you apply for an online savings account they require you to agree a direct debit mandate.

Some accounts requre you to take out a direct debit mandate as you need to pay monthly standing orders to the savings account.

Felix · 11 May 2008 at 10:14

ashagplz said:
but that only requires my bank details.

And that is exactly what you have given them on the direct debit mandate which is then sent to your bank manager who authorises it.