With a standing order, the bank client instructs his bank to regularly execute a certain payment on a certain date.
Standing orders are mainly used when the same amount has to be paid regularly to the same recipient. For example, for rent payments or, in the case of homeowners, mortgage payments.
The standing order is also recommended for monthly instalment payments on a personal loan. The borrower gives his bank an order for monthly payment of the loan instalment (monthly instalment) and thus never forgets to make an instalment payment.
Usually, a standing order can be set up in writing or in the online banking tool and can be adjusted or revoked at any time.
Most banks allow weekly, monthly or quarterly payments. A standing order is usually free of charge and is automatically executed until the account holder stops it or the account is not funded.