What is a standing order?
A standing order is an instruction to a bank to make regular payments of fixed amounts to another bank account.
The business will complete a standing order mandate form (or alternatively this can be done online or at a bank branch) and provide details of the dates the payments will be made, the amount to be paid, the account details of where the money will be paid from and the account it will be paid to and, if appropriate, when the payments will end. Once a standing order is in place it can then be amended or ended quickly and easily by providing additional instructions to the bank.
Standing order mandate forms
An example of a standing order mandate form is shown below.
When will a standing order leave the bank account?
When a standing order is in place, the money will leave the bank account on the payment date stated on the standing order mandate form and will arrive in the other bank account on the same day. Where this date falls on a weekend or bank holiday, the payment will leave the bank account on the next working day.