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Direct Payment into an account at a bank, building society or Post Office® is our normal method for paying all benefits and state pensions.
Direct Payment is the safest way to pay you and lets you choose how and when you get your money. You can use a bank or building society. You may be able to use a cash machine, which will usually mean you can get your money at any time of the day or night. There are arrangements with banks and building societies so that you can collect cash from some of their accounts at your Post Office® branch.
The Post Office® also provides a bank account that we can pay your money into. With this account you can only collect your money in cash from Post Office® branches.
Other advantages of having your money paid into an account are:
- You can get your money from many different places
- From some accounts you could have regular bills paid. This could save you money but you will need to make sure there is enough money in your account to pay the bills. If not, you may be charged a fee.
- Using an account may help you to save.
- If you get more than one benefit or state pension, Direct Payment can make it easy to manage your money as all your payments can be paid into the same account.
- You don't have to take all your money out in one go, so you don't have to carry too much cash around.
What you need for Direct Payment To receive your money by Direct Payment you will need one of the following:
More details on these account options are given below. However, please remember that Government and Post Office® staff are not qualified to give financial advice on which account option is best for you. You can go to your local Citizen's Advice Bureau for independent advice.
A current or savings account at a bank or building society (some with access at the Post Office®).
These accounts are available from any high street bank or building society you choose, and offer the widest range of banking services. Besides your benefit or state pension you can have other money paid into it, like wages.
With a current account, you can make withdrawals from a cash machine or at some branches over the counter. You can receive a cheque book and a debit card, and in some cases earn interest on your balance. You can pay bills by direct debit and you can have an overdraft facility (subject to credit status). You can avoid paying bank charges as long as you don't go overdrawn.
As the features of bank and building society accounts vary, it's a good idea to compare different accounts to see which one suits you best.
With some current accounts you can withdraw your cash from the Post Office®. Currently in Northern Ireland these are Alliance & Leicester, Bank of Ireland, cahoot, The Co-operative Bank and smile. Some of these accounts are accessed using a cheque book and card and some also allow access with a plastic card and Personal Identification Number (PIN). Please check with your bank or building society for details.
A basic bank account with Post Office® access.
This easy-to-use bank account shares many of the features of a current account. Your benefit or state pension can be paid straight into it and you can receive payments from other sources, like wages.
You can pay bills by direct debit. But as there are no overdraft facilities, you'll need to make sure you have enough money in your account to pay them or the payment will not be made and you may be charged.
You can make withdrawals from cash machines and in some cases over the counter from branches of the bank or building society itself. Some basic bank accounts also offer you a debit card.
In addition you will be able to withdraw cash, free, at any Post Office® branch in the UK using a basic bank account from Abbey National, Alliance & Leicester, Bank of Ireland, The Co-operative Bank, First Trust, Halifax, HSBC, Nationwide Building Society, Northern Bank and Ulster Bank. With some basic bank accounts, you will also be able to check your balance at the Post Office®.
A Post Office® card account.
This simple account operated by the Post Office® is designed for receiving benefits, state pensions and tax credits only. Other payments, for example wages, cannot be paid into this account. Almost anyone can open a Post Office® card account and you can't go overdrawn. However, you cannot pay bills by direct debit or standing order.
You will be able to get your cash over the counter at any Post Office® branch during opening hours, but not from a bank, building society or cash machine. The account, to be opened in your name only, comes with a plastic card and a Personal Identification Number (PIN).
How to open a new account If you do not already have an account that is suitable for Direct Payment, you will need to open one of the accounts listed above in order to receive your money.
Opening a bank or building society account.
Just get in touch with the bank or building society of your choice. You can visit the branch in person or in some cases you can do it by phone. You'll need to provide proof of who you are and where you live. The bank or building society will tell you which documents they accept - typical things are a passport, full current driving licence or a recent rates or utility bill.
Tell them you need an account that money can be paid into directly. If you want an account that will be accessible at Post Office® branches, make this clear.
Opening a Post Office® card account.
For information on how to open a Post Office® card account you should contact the office that pays your money. You will find office contact details on:
Using your account for Direct Payment Depending on the type of account you choose, you may use a cheque book and cheque card or a plastic card with a Personal Identification Number known as a PIN to collect your money.
You can use your card to find out how much money is in your account. With a plastic card, you will have a PIN, so that only you can take cash out. Don't tell anyone your number.
If you have a current or a basic bank account, you can use your card at a cash machine to get money out or check you balance. With most accounts you can take your card into a branch and ask the cashier to give you some or all of your cash, and also ask how much is in your account.
Some current accounts and most Basic Bank accounts let you withdraw cash from a Post Office®. Check with your bank, building society or Post Office® branch for details.
If you have a Post Office® card account, you can withdraw your money from any Post Office® branch. You'll get a receipt for every transaction as well as a quarterly statement.
You will be paid
Your money will be paid into your account on your normal payday.
Finding out how much is paid into the account
We will tell you when the first payment will be made and how much it is for. Each payment, after the first one, should be for the same amount unless there is a change in your circumstances. We will tell you whenever we know there is going to be a change in the amount we pay into your account.
You can check your payments on your account statements. Your statements will show your National Insurance (NI) number next to payments that are from us. A Post Office® card account statement shows your payment details but not your National Insurance (NI) number. If you think your payment is wrong, get in touch with the office that pays you. You will find office contact details on the A - Z list of our offices. If you don't know where your nearest office is try our office map.
If not enough money is paid into the account
If we do not pay enough money into the account we will make another payment or add the money we owe you onto your next payment. We will contact you to tell you what we are going to do.
Sometimes we pay too much money into the account
If this is because of the way the system works for payments direct into an account, we have the right to recover any money you are not entitled to. For example, you may give us information which means that you are entitled to less money but we may not be able to change the amount already sent out. We will contact you if we propose to recover money under this rule.
Getting someone to collect your money
If you want someone to collect your money for you regularly, you may be able to make arrangements with your bank, building society or, if you have a Post Office® card account, the Post Office®. Please ask them for help with this.
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