16 Jan 2022

Can a Savings Account Be Used for Direct Debit?

Every homeowner who obtains a mortgage to finance their house purchase sets up a direct debit authority with their lender. The best account for direct debit is a checking account. It has the features for debits and credits. A savings account has a different purpose.

Financial institutions offer savings accounts to their clients to help them save. Basic savings accounts don’t have built-in debit and credit features. Instead, they have deposit features. The account is designed to receive funds but not consistent withdrawals. Banks rely on deposits to maintain an expected threshold of liquid cash as mandated by the financial institutions at the government level.

In unique cases, a lender can set up a direct debit authority through a savings account. For the most part, most homeowners will require a checking account to complete the authorization.

To make setting up the authorization easier, Mortgage House also offers an online payment option. The information is available in every mortgage welcome packet.

Setting up the direct debit authority makes mortgage repayments easier. The repayment automatically withdraws from the account every month on the first. Simply ensure that the funds are available.

Mortgage House makes it easy to set up the authority. Our loan specialists answer your questions during the process if anything isn’t clear. We also offer tools such as the car loan calculator.

Direct Debit and Savings Account Conclusion

If you need help setting up a direct debit authority for your home loan, our Mortgage House loan specialists walk you through the process. They look over the form to ensure that all the information is correct. Contact our team for more information.

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