Setting up The Standing Instructions in your SBI Bank Account (Part 2)
This article is a guide on How to Set Standing Instructions on your State Bank of India account using Internet banking facility with Online SBI.
This is the 2nd part of the article, Visit this link for the How to Set Standing Instructions (Part 1).
A standing order (or a standing instruction) is an instruction a bank account holder (“the payer”) gives to his or her bank to pay a set amount at regular intervals to another’s (“the payee’s”) account. The instruction is sometimes known as a banker’s order.
Standing instructions are a way of making an automatic payment of a fixed amount to a loan, bill, or credit card at the same time every week or month. It can be made from your savings or checking account and is most commonly used to make payments to a mortgage, car loan, or to pay bills.
Is this method of payment free?
Almost anything a bank does for you that offers any kind of convenience will come at a cost.
Who are Standing Instructions good for?
Standing instructions aren’t for everyone – especially if you want to avoid paying fees. If the following applies to you, then a standing instruction might be a good option to manage your money:.
- You are usually forgetful. Having an automated mode of payment will definitely help ensure that you don’t get penalized for missing deadlines again.
- Your payment amounts are fixed. This is important. Standing instructions are typically set to the pay the same amount at the same time. If you have a loan that doesn’t have fixed payment; you will still end up short or worse – if you forget when the payment should change – you could end up paying a lesser amount month after month.
- Your income is fixed and is credited on time every month. As there is a penalty for every failed attempt at automated payment – it’s best to ensure that your income is fixed (not based on commission or hours) and that you are certain to have enough money in your account at the time every month when payment will be debited.
Standing instructions are especially good if you are busy and have little time to spend bothering about bills and loans. Nonetheless, it’s not altogether cheap. Rs X0 paid each month is Rs Y000 a year which could be better spent elsewhere.
Set standing instructions through SBI Internet banking for all your regular, periodic payments and fund transfers. Watch our tutorial video to understand the procedure.
- Login to Online SBI
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