Standing Order

What is standing order? 

If personal credibility is built by doing what you say, financial credibility is built by paying what you promised. And a standing order is that promised keeper for you. It is a set-it-and-forget-it solution where you instruct your bank to transfer a fixed amount to another account regularly.

It's perfect for recurring expenses like rent or subscriptions, ensuring timely payments without the hassle of manual transactions. 

Standing order example: How it works 

Imagine as a tenant you need to pay rent of ₹15,000 every month. By setting up a standing order with their bank, you can ensure that ₹15,000 is automatically transferred from your bank account to your landlord’s account on the same date each month. This setup eliminates the need to transfer the rent manually, reducing the risk of late payments. 

Standing order vs. Direct debit 

Standing orders and direct debits both automate payments, but they work differently. With a standing order, you control the payment details, like amount and frequency. Direct debits, however, are managed by the recipient, who can adjust the amount and schedule, provided they notify you in advance. 

Benefits of using standing orders 

In addition to having peace of mind knowing your important bills are being paid automatically, other key benefits of standing order include: 

• Convenience: Automate recurring payments and free yourself from the hassle of remembering due dates. 
• Time-Saving: Avoid the need for frequent online or physical transfers, saving you precious time. 
• Reduced Risk of Late Fees: Ensure your bills are paid on time and avoid any late payment penalties. 
• Budgeting Aid: Knowing your regular outgoing amounts helps you create a more accurate budget and manage your finances effectively. 
• No Additional Fees: Standing orders generally do not incur additional fees, making them a cost-effective way to handle regular payments. 

How to set up a standing order 

Setting up a standing order is a straightforward process. Here’s how it typically works for most banks: 

1. Log in to Your Online Banking Account: Most banks allow you to set up standing orders through their online banking platforms. 
2. Enter the Payment Details: You’ll need to provide the recipient's bank account details, the amount to be transferred, and the frequency of payments. 
3. Choose the Start and End Date: Specify when you want the standing order to start and whether you want it to continue indefinitely or for a set period. 
4. Review and Confirm: Double-check the details and confirm the standing order. Once confirmed, the bank will process the payments as instructed. 

You can consider opening a Kotak811 savings account to set up standing orders efficiently. We offer a user-friendly online platform that makes managing your finances easier and more efficient.