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Forums Payment cards American Express Direct debit from a Chase Savings Account

  • pointsfan 50 posts

    Hi

    Has anyone tried setting up a direct debit from a Chase Savings account for amex payments?

    Thanks

    Rui N. 1,020 posts

    Not for Amex but I have several DD for my 0% cards and it works just like a DD should work

    DK 24 posts

    Yes it worked but had to try 5 times. They kept rejecting it.

    Globe 11 posts

    Yes, i took them to the Financial Ombudsman over this and I won. They now must do so.

    BBbetter 1,254 posts

    Yes, i took them to the Financial Ombudsman over this and I won. They now must do so.

    Wow, for a DD not working? Or they refused to accept DD?

    BA Flyer IHG Stayer 3,075 posts

    Yes, i took them to the Financial Ombudsman over this and I won. They now must do so.

    Please post the link to the case.

    Globe 11 posts
    stevenhp1987 372 posts

    Decision number DRN-5145912 – https://www.financial-ombudsman.org.uk/decision/DRN-5145912.pdf

    That’s a complete waste of FOS time, imo.

    You could have just set up a DD from your current account but instead kept trying to use a savings account. It looks like you were simply chasing compensation for attempting to do something that’s not usually offered elsewhere.

    Technically you had every right to complain but I can only fathom how much time you wasted on this when there are easy solutions.

    Globe 11 posts

    That wasnt the point. The issues are a) the hassle of moving money from my savings account into my current account and b) the lost interest of holding the balance in the current account rather than savings account. I spend c.£40,000 per month on my Amex, and hence maintaining that level of cash in my current account, when my savings account was paying 4.5%, cost me c.£1,800 per annum in opportunity cost. The compensation from FOS was nice too though, but my main reason for pursuing it was to benefit the general consumer. I get personal utility from such things. Each to their own, but that’s my view of it.

    Globe 11 posts

    If you want to see a FOS waste of time, read this: https://www.financial-ombudsman.org.uk/decision/DRN-3739550.pdf

    Globe 11 posts

    Im 35 years old – if i use my life expectancy of UK, non-smoking male, who is healthy with regular exercise, i have an expected 55 years left in me. UK 50 year gilts yield 4.5%, so if i NPV the £1800 saving per annum to a lifetime NPV using 4.5% discount rate, it gives me NPV of £36,500. Maybe now you can understand it was worth my time for me alone (that’s excluding the utility i got from the societal benefit of helping the general UK consumer).

    tiberius 67 posts

    Thanks v much for this – I found it a complete pain remebering to transfer my amex statement sum into my current account on the correct day (and have on more than one occassion have woken up to angry texts from Barclays asking me to pay back the overdraft by 1pm or avoid charges). I prefer not to keep anything in my current account and so setting up a DD directly from Chase’s savings account simplifies my life massively.

    9xolaereht 9 posts

    You could have avoided all this hassle by just using Kroo – it pays interest on your current account balance, at a higher rate than Chase Savings as well anyway.

    Globe 11 posts

    Does Kroo have a) cash back on spend b) zero fx costs c) same/better quality user interface d) same level of 24/7 customer service? Dont think so. Chase is by far the market leader in UK retail banking now.

    Globe 11 posts

    Bear in mind that Chase now has 2 million UK customers, and the growth is c.20%+ per annum. If we assume just 5% of the current customer base takes advantage of the above now, that’s >£360 million of value transfer from Chase to the customer. That’s my charitable giving of 2024 done. On the contrary to stephenhp’s comments above that it was time “wasted”, it seems like a decent return on 10 minutes’ work.

    9xolaereht 9 posts

    Kroo ticks all those boxes with the exception of cashback on spending, but given that you were using Chase Savings rather than the current account, this feature was not relevant to you anyway in the context of this issue. You would have been financially better off using Kroo and its higher interest rate.

    Globe 11 posts

    Rate on Chase is 1pct higher than that when you switch on boost feature. Ie close to 25% higher than Kroo. Kroo customer service is also 9am-5.30pm Mon-Fri which is rubbish.

    Rui N. 1,020 posts

    Why would you need to contact customer service?

    chazman189 3 posts

    To ask them to set up a direct debit on a savings account, perhaps?

    stevenhp1987 372 posts

    Im 35 years old – if i use my life expectancy of UK, non-smoking male, who is healthy with regular exercise, i have an expected 55 years left in me. UK 50 year gilts yield 4.5%, so if i NPV the £1800 saving per annum to a lifetime NPV using 4.5% discount rate, it gives me NPV of £36,500. Maybe now you can understand it was worth my time for me alone (that’s excluding the utility i got from the societal benefit of helping the general UK consumer).

    Amex Direct Debits are taken 2 weeks before payment due date.

    If you’re really interested in maximising profit then you would never pay by DD and instead pay it off manually to get an extra 2 week interest each month.

    TJones 82 posts

    My Kroo current account is paying 3.65% AER today.
    My Chase savings account is paying 3.5% AER today.

    Chase were competitive when they launched the account with a 1.5% rate but not any more. The boost is only offered to new customers at the moment.

    tiberius 67 posts

    Just as an update on this I submitted my forms to change my DD last week. Amex has now said the change has been marked with “DD Declined – due to Saving account provided”

    Globe 11 posts

    Sounds like you need to raise a complaint with Amex, ask for an FRL, file it with FOS, pass Go and collect your £100 for distress and inconvenience….

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