How to Set Up a Direct Debit on PayPal for Bank Switching (No Spend Required)
Bank switching can be incredibly lucrative, offering thousands of pounds in rewards each year. To see the latest offers, check out our comprehensive list here. Often, banks require you to set up a certain number of direct debits as part of the switch process. This encourages you to transfer your regular spending to the new account, making it your primary bank.
Understanding Direct Debits
Direct debits are a type of payment instruction that authorises a company or organisation to withdraw funds from your bank account on agreed dates (if needed). They are typically used for regular payments, such as utility bills or subscriptions. However, for the purpose of bank switching, you can set up direct debits that don't require any actual spending.
Setting Up a Direct Debit on PayPal
One easy way to set up a direct debit without incurring any costs is through PayPal (new customers also receive a £10 cash bonus!). Here's a step-by-step guide to help you set it up:
Step 1: Open Your PayPal Account and Head to Wallet
Log in to your PayPal account. On the main dashboard, find and click on the "Wallet" option. This is where you manage your payment methods and financial information.
Step 2: Add a New Bank Account or Card
In the Wallet section, select the option to add a new bank account or card. Follow the prompts to log in to your bank account. This will link your bank account to PayPal.
Step 3: Confirm the Direct Debit Instruction
During the process, you will be asked to confirm a direct debit instruction. This is essentially an agreement that authorises PayPal to make payments from your bank account if you decide to use it for future purchases. No money will be taken out at this point. The direct debit is simply set up and ready to go if needed.
By following these steps, you create a valid direct debit that meets the requirements of bank switching offers without having to spend any money.
Conclusion
Setting up direct debits is a key requirement for many bank switching offers. By using PayPal, you can quickly and easily set up these direct debits without any actual spending. This simple process ensures you meet the necessary criteria to take advantage of lucrative bank switching rewards. If you need some other easy direct debits feel free to check out this list!
