Both are useful, but they work in different ways. Here’s what you need to know.
If you’ve ever been asked to “set up a standing order” or “pay by Direct Debit,” it’s easy to assume they’re the same thing. But while they both help you make regular payments automatically, they work a little differently, and knowing the difference can help you choose what’s best for you.
At Northern Community Bank, we believe in making money matters simple, clear and easy to understand.
What Is a Standing Order?
A standing order is a regular payment that you set up from your bank account. You choose:
- The amount
- The date
- How often the payment goes out (e.g. weekly, monthly)
- When to stop the payments
You’re in full control. You can set it up, change it, or cancel it at any time through your bank.
Common uses:
- Saving regularly into another account
- Paying a set amount for rent or to friends/family
- Making regular loan repayments
What Is a Direct Debit?
A Direct Debit is a regular payment that the company or organisation sets up (with your permission) to take money from your account.
They can change the amount or date but they must give you notice first, usually at least 10 working days.
Common uses:
- Household bills (gas, electric, broadband)
- Subscriptions (like streaming services)
- Mobile phone or insurance payments
Quick Comparison
| Standing Order | Direct Debit | |
| Who sets it up? | You | The company or organisation |
| Who controls it? | You – full control | They control the amount/date (with notice) |
| Fixed amount? | Yes – stays the same until you change it | Can change depending on your bill |
| Best for… | Fixed regular payments | Bills or services with changing amounts |
Which Should I Use?
It depends on what you’re paying for:
- If you want to stay in control and pay the same amount each time → Standing Order
- If the amount might change (like energy bills) → Direct Debit
For example, if you’re repaying a loan or saving with us, a standing order is ideal. You can set it up to go out straight after payday, so you never forget, and your payments stay on track.
Need Help Setting One Up?
We’re here to make things easy. If you want a hand setting up a payment to Northern Community Bank – just get in touch.
You can always talk money with us.
