STANDING ORDER Meaning and
Definition
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A standing order refers to a financial arrangement commonly employed in banking that allows for the automatic transfer of a fixed amount of money from one's account to another account at regular intervals, typically on a specific date or day of the month. This predetermined amount is debited from the account holder's banking account and credited to the recipient's account. Standing orders are primarily used to fulfill regular payments, such as rent, mortgage, bills, or financial obligations, and they provide a convenient method for ensuring timely payments without the need for manual intervention.
Standing orders are typically set up by the account holder, usually through online banking or by completing a standing order form provided by the bank. The instructions include the recipient's account details, the amount to be transferred, the frequency of payments, and the duration of the standing order.
This financial arrangement offers several benefits, including time-saving as it eliminates the need to remember and process payments manually each time. Its regularity also ensures the timely completion of payments, reducing the risk of late fees, penalties, or service disruptions. Account holders retain control over standing orders, having the flexibility to amend or terminate them as necessary.
It is important to distinguish standing orders from direct debits, as the latter enables the recipient to directly draw payments from the account holder's bank account and the amounts may vary from one payment to another.
Common Misspellings for STANDING ORDER
- atanding order
- ztanding order
- xtanding order
- dtanding order
- etanding order
- wtanding order
- sranding order
- sfanding order
- sganding order
- syanding order
- s6anding order
- s5anding order
- stznding order
- stsnding order
- stwnding order
- stqnding order
- stabding order
- stamding order
- stajding order
Etymology of STANDING ORDER
The term "standing order" originates from Middle English and has its roots in several different words and phrases.
The word "standing" comes from the Old English "standan", which means "to stand". In this context, it refers to something that is fixed or permanent and does not change.
The word "order" comes from the Old French "ordre", which is derived from the Latin "ordo" meaning "arrangement" or "sequence". In this case, it refers to a prescribed arrangement or instruction.
When combined, "standing order" refers to a directive or instruction that remains in effect perpetually or until specifically canceled or changed. It is often used in financial contexts to refer to an instruction given to a bank to make regular payments or transfers from an account.
Similar spelling words for STANDING ORDER
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