A standing order is an instruction from a customer to his bank to make a regular payment of a fixed amount to a named creditor (BIS definition). Although standing orders are accepted by banks, their usage has declined, and they are progressively being replaced by direct debits. However, they are likely to continue, as they have significant advantages over direct debits in certain circumstances.
Standing orders can be used to pay regular subscriptions, instalments, or other payments (provided the amount remains constant). Until recently, your bank would charge a fee for setting up a standing order and for each payment. At the time of the latest survey by the Financial Regulator, all banks offer standing orders free to personal customers (except that some charge a penalty in the event of an unpaid standing order)
Setting up a standing order
If you want to set up a standing order payable to a commercial enterprise or charity, then the payee is likely to have a pre-printed standing order form.
Your bank will probably have blank standing order forms which you can fill in and sign
Alternatively, your bank will probably accept a simple written instruction along the following lines:-
On the 13th of each month commencing from 13th Jan 200x, until further notice, please pay and charge to my account the following amounts:-
|Payee details||Payer Details||Amount|
|Name||Name||€100.00 per month|
|Account No||Account No|
|Branch NSC||Branch NSC|
Signed _________________________ Date____________________
Cancelling a standing order
Just a simple written instruction to your bank is required