A standing order is a process you start, telling your bank to initiate payments of the amount you choose to another account on a regular basis, i.e. weekly, monthly, yearly etc.; much like a direct debit. Because a standing order has been set up by you, you can choose the amount, the frequency of the payments, and you can customise it to end on a certain date or to go on indeterminately.
Standing orders are helpful for paying costs that do not change every month, such as rent, or payments you may be making into your savings account each month.
Can I make a standing order?
So long as you have a basic bank account or current account you can set up a standing order. However, depending on the account you hold, you must be 11 years old or older in order to set up a standing order.
How do I set up a standing order?
It all depends on the bank you are with. Some allow standing orders to be set up over the phone or online, whereas others must be done in person at your closest branch. You must fill out a standing order form with the account number and sort code of the person to whom the money is going. However, a standing order requires maintenance in order to avoid transaction fees. It is up to you to check your account before each standing order is withdrawn to make sure that you have enough in your account to cover the amount; you can do this through online or telephone banking. You can also cancel or adjust the standing order at any time.