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Between 1p and £1: Can you set up such direct debit for your savings account?

Getting just 2 per cent interest on your UK-based current account is next to impossible nowadays and you’d be lucky if you get close to 1 per cent on your savings.

You find yourself looking up the high-interest accounts that exist, but you discover there’s a catch: you need at least 2 direct debits to improve their interest level and this can often defeat the purpose.

Fortunately, there’s a way out of this situation in the face of relatively cheap direct debits (aka DDs) that, when set up, allow people to massively cut down on spending while reaping the benefits.

1p to £1 as a direct debit: Is it possible?

Obviously, the best way to get around the requirement of spending money through the 2 mandatory DDs is to set very tiny transaction amounts. Naturally, the first thing that comes to mind is token payments.

Here’s where to look if you want to set up a 1p to 1 pound payment as a direct debit:

Most often, you can set up cheap transactions of small sums as direct debits for fundraising or charity organisations. Amounts between one penny and one pound can be accepted.

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What are some DD examples?

One may wonder then what other options they would have. Here are possible examples of where a direct debit can be accepted:

  • Car payments;
  • Life insurance;
  • Income protection insurance;
  • Political parties;
  • Swimming clubs;
  • Martial arts clubs;
  • Phone contracts;
  • As a charity donation;

You can use these websites for small direct debits

There are also websites that do all the work for you. Such services come with a lot of benefits such as automatic direct debits, secure payments, easy cancellation and set up, charity donations of your choice, direct debit guarantees against incorrect or fraudulent payments and more.

Mission accomplished

Here in the UK, it may seem hard to keep a higher interest percentage for your savings account, but if you’re well-informed the task becomes quite simple. Go ahead – improve your finances. You now have the knowledge to do so!

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