Managing your bank account

BANKING ESSENTIALS

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Introduction 1. See and manage payments from your bank account 2. Other types of payment

In this lesson, we'll explore how you can manage your bank account, including payments in and out, direct debits and standing orders. You'll also find out about other ways to pay.

KEY LEARNINGS

 
  • How to see payments going in and out of your bank account
  • How direct debits and standing orders work
  • Different ways to make payments

Read time:

5 mins

Chapter 1 - See and manage payments from your bank account

Chapter 1

See and manage payments from your bank account

Read time:

3 mins

Making and receiving payments

It's quick and easy to make and receive payments to and from your bank account online. You can also move money from your other accounts, and with some banks you can pay in cheques through your mobile banking app too.

You can also make payments into your account in person, by going to your local branch or by using one of the cash machines (which allow payments) at your bank.

 

Samira wants to check her account, which she decides to do online.

She logs into her banking app, to see all the payments coming into and going out of her account.

Outgoings

Samira checks her outgoings first. She sees her purchase of her son's birthday gift there. It shows the name of the shop she paid, and the amount.

Incomings

Next, she looks at her incomings. She sees a benefits payment. This shows as 'Universal Credit', plus the amount she gets from this payment.

Direct Debits

Samira pays her gas, electric and water bills by direct debit. This is where a company takes money from your bank account on a regular basis. 

Many people pay these bills by direct debit. It can be a useful way to make regular payments, without having to remember to pay each month. 

The utility company needs to let you know when they will take the money out of your account, and if this – or the amount – changes.

Standing Orders

Samira sets up a standing order. This is a regular payment like a direct debit, but you control the amount, plus when and how often it is paid.

 To set up her standing order, Samira starts by entering the name of the person or company she wants to pay – the 'payee'. She also enters their bank account details here. Once they're set up as a payee, Samira won't have to type in their details again if she wants to set up a different payment to them in the future.

Samira also types in how much she wants to pay them, when and how often.

Introduction - Managing your bank account
Chapter 2 - Other types of payment

Chapter 2

Other types of payment

Read time:

2 mins

Different ways to pay

So far, we've looked at ways to move money directly into and out of your bank account.

Let's explore other ways to pay:

  • A cheque is a paper form used to give money from one person or business to another.

    Banks no longer give out cheque books automatically when you open a new bank account. So if you need one, you may need to request it.

    If you get a cheque from someone, you can take it to a bank and redeem it for the amount stated on it. The bank then processes the cheque, taking the amount from the account of the person who gave you the cheque. You will usually see the amount in your bank account within a few days.

    You can pay in cheques at your bank and at the Post Office. Most UK banks now also let you pay in cheques using your mobile banking app, by taking photos of them.

  • These two methods are another way to pay for things with your bank account. It's a simple, secure way to make everyday payments with your mobile device. 

    Wherever contactless payments are accepted, you can use either method with most phones. Apple Pay® is for iPhones and some other Apple devices. If you have an Android phone, you can use Google Pay.

    This can be a safe way to pay. Your debit or credit card number isn't shared with retailers. It's not stored on your device or on any servers either. 

    Image showing the apple pay logo

  • PayPal is an online service that lets you pay and send money and accept payments without having to enter your bank details each time. 

    You set up an account and enter your bank details, which then means you can make and receive payments with PayPal. 

    Friends can pay into your account for free using your mobile number or email address, so it can be a convenient way of sending money.

Managing your bank account: completed!

In this lesson you've learnt how to manage your bank account, direct debits and standing orders, and also looked at the different ways to make payments.

Chapter 1 - See and manage payments from your bank account

Exit lesson and mark as complete

 

Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 18th November 2024.

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