Paying gas/electricity by direct debit

[searchlight]

Is it a good idea to pay your power bills by direct debit ? I would get a 3% discount but the company gets its money ahead of the billing date.
Thanks

[ummmm]

I prefer it for the convenience. I have a tendency of putting letters into a draw and forgetting about them.

[hc4361]

Yes. I doubt your money is earning 3% in the current financial climate. And no big bills to stress about.

[northernmonkey]

does it really matter about when the payment is received? to me - no

[factor-fiction]

Worthwhile definitely. It means you are paying some of your money a little earlier but if you are billed quarterly and pay monthly at month end you are on average paying six weeks early. I disagree a little with hc4361 who uses a 3% savings rate for comparison purposes. Because you are on average paying 6-8 weeks earlier you 'd need an after tax interest rate of around 20% to make it not worth paying by DD.

[boxtops]

I have done so for a long time. Means the money is paid automatically, I don't have to remember to keep it to one side, and I get a discount for paying by DD - and extra Nectar points for reading my own meters and submitting on-line.