Thursday, June 27, 2013

Direct Debits You'll Need to Update When You Change Bank

I recently opened a new current account when I realised that a different bank could offer me a better interest rate as well as other benefits such as travel insurance. I think a lot of people avoid changing their bank account due to the admin that often comes with it though, such as filling in forms, attending appointments and then considering the actual money side of it too. This includes getting an employer to pay your salary to your new current account, as well as figuring out which direct debits are set up to your old account. Some banks will now help you change all of your direct debits, but if you are required to do this yourself, these are the types of services you might need to update...

Charity donations

Many of us have recurring payments for charities scheduled by direct debit each month. Changing bank account is an ideal opportunity to look at the donations you currently have set up, before analysing whether you want to continue giving the same amount. If you are happy with what you’ve previously set up, you should be able to set up a new direct debit schedule from your new account; remember to cancel the existing agreement.

Mobile phone

If you have a mobile phone contract, this is more than likely set up as a direct debit. It’s important you don’t miss this payment as you may incur charges for having a failed payment attempt. Therefore you should call your mobile phone provider if you will not have a new payment schedule in place on time and they should let you make a manual payment instead. Of course, if you’ve timed the expiration of your contact with the opening of your new bank account, you could look at new mobile phone deals online and simply set up a new agreement with the provider.

Satellite TV

Another service you may have is that of satellite TV such as Sky or Virgin Media. If you depend on these services so you can watch sports channels and more, you’ll want to make sure that you remember to update your payment with your provider. Again, make sure that the original agreement has been cancelled so you do not incur any charges with your old bank. You might even want to consider finding a service that doesn’t charge you monthly, such as a freeview box which just requires a one-off cost.

Energy bills

Many of us pay our energy bills through direct debit agreements, so make sure you check how your own bills are currently paid. Think about electricity, gas, water and even your council tax. If there are going to be any problems with making a payment quickly, it is a good idea to call each of your energy and utility suppliers as you can make alternative arrangements for payment. If you are going to call, you could also give them your latest meter readings to make sure that your payments aren’t too low or too high.

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