Making or taking regular payments has several ways, such as direct debit and standing order, but they are not the same in features and requirements. While it makes more than one option to take assistance in your regular payments, choosing the most suitable payment method is essential to make things happen the way you want.
For this, you need to understand the different options, identify their features, and analyze what option offers the best match for your specific criteria or requirements.
So, what is the difference between a standing order & a direct debit? Let’s find it out here.
You can set up a direct debit with your bank or financial institute. You will be required to provide them with your account number and sort code. The bank or finance company will collect money from your current account regularly. You can pay your bills, such as energy providers, credit card bills, and council tax bills.
Direct debits work as a component of a fixed agreement. If you want to change the amount of frequency of the payment, you will need to request your bank or financial company to make the necessary changes.
Unlike direct debits, a standing order allows you to set up a way to automatically transfer a fixed amount of payment to another account every month. The deposited amount will allow you to make payments for the services you use or to pay the rent.
Also, you can use that amount of money to move it into your savings account every month. A standing order allows you to change or cancel it at any time. In simple words, a standing order is an instruction that you give your bank to pay a specific amount directly into their account regularly or even move it between your two different accounts.