Can a Savings Account Be Used for Direct Debit?
Unfortunately, individuals cannot use savings accounts for direct debit services. A savings account’s primary purpose is to encourage saving and gaining interest, not withdrawing money to pay for expenses. There are different accounts considered savings accounts, including mortgage and fixed-term savings accounts. Credit card accounts also cannot be used in conjunction with direct debit services.
Direct debits are automatic transactions that transfer funds from one account to another and can be helpful for managing on-time bill payments and debt repayments without worrying about late fees. Direct debits allow service providers to remove an agreed-upon amount from an account to pay for bills.
Researching direct debit providers prior to enrolling in direct debit services is the best way to ensure a service provider is trustworthy and reliable, which is essential to keeping your funds safe and secure. Speaking with lending specialists and mortgage brokers can point a potential borrower to their recommended service providers.
If you are interested in learning more about direct debit services and how they can assist homeowners in paying off their mortgages, contact our lending specialists at Mortgage House for specialized assistance and recommendations.
Keep in mind that direct debit is a service helpful for paying bills and debt. Because of structuring differences, direct debit services cannot be used through savings accounts or credit cards. Mortgage accounts and fixed-term savings accounts are also ineligible for direct debit.
Check out our Budget Planner Calculator for free financial assistance to assist you in reaching your goals.