Standing Orders vs Direct Debits in Spending
Find out about the advantages and disadvantages when paying for goods through the bank, using standing orders and direct debits.
A standing order is an instruction to a bank to pay an agreed amount of money to another bank account/company/person on a particular date or time. The standing order will normally pay out the same amount of money on a regular basis, weekly, monthly or annually.
You can get a standing order form from your bank to complete and hand in.
A direct debit is similar to a standing order, but there is one difference. With direct debits you instruct the bank to allow the company or organisation who presents the direct debit to say how much money will be taken from your account and when.
This can be useful when paying mobile phone bills, electricity bills or credit card bills as the amount you pay will vary with each bill and so a direct debit will enable you to pay the various amounts without having to tell your bank to do anything.