A standing order (Dauerauftrag) is an instruction to your bank. With it, the bank regularly transfers the same amount to the same person or company. You decide how much money, to whom and how often. For example, every month on the 1st. The bank then does this automatically until you change or delete the standing order. This means you don't have to make a bank transfer yourself every month. To set up a standing order, you need a current account (Girokonto).
Where you will come across the word
- In your rental contract (Mietvertrag) or in a letter from your landlord: you are asked to pay the rent every month by standing order.
- In letters from organisations that expect regular payments, for example for the broadcasting fee (Rundfunkbeitrag).
- At a sports club, a music school or when you pay a bill in instalments.
- In online banking and in your banking app, often under the menu item “Daueraufträge”.
- On bank forms, when you set up the order at a branch.
What you should do
- Collect the details: You need the recipient's name, their IBAN, the amount and the payment reference (Verwendungszweck). The payment reference is important, for example your customer number or “Miete Wohnung 2. OG” (rent, flat on the 2nd floor). This way the recipient knows who the money is from.
- Choose how often: You can usually choose monthly, quarterly, every six months or yearly. Some banks offer other intervals too.
- Set the date: Check by when the money has to reach the recipient. This is stated, for example, in your rental contract or in the letter. A transfer often takes a little time. So choose a date a few days earlier.
- Check your account: Make sure there is enough money in your account. Otherwise the bank may not carry out the order. This can lead to payment reminders (Mahnungen) and extra costs.
- Change it: If the amount changes, for example after a rent increase, you have to update the standing order yourself.
- Delete it: When a contract ends, delete the standing order. Otherwise the bank will keep paying. Getting the money back is then difficult. You have to ask the recipient to pay it back.
Whether a standing order costs money depends on your bank and your account type. If in doubt, ask your bank directly.
Example
- In a letter from your landlord: “Bitte richten Sie für die monatliche Miete einen Dauerauftrag ein.” (Please set up a standing order for the monthly rent.)
- In a letter: “Sie können den Beitrag per Lastschrift oder per Dauerauftrag bezahlen.” (You can pay the fee by direct debit or by standing order.)
- In conversation: “Ich habe einen Dauerauftrag eingerichtet. Das Geld kommt jeden Monat am Ersten.” (I've set up a standing order. The money arrives on the 1st of every month.)
Related terms
- Bank transfer (Überweisung): You send money once from your account to another account.
- Scheduled transfer (Terminüberweisung): A single transfer that the bank carries out on a specific day in the future.
- Direct debit (Lastschrift): Here the recipient takes the money from your account themselves, and you can usually have a direct debit reversed within eight weeks.
- SEPA direct debit mandate (SEPA-Lastschriftmandat): With this signature, you allow a company to take money from your account.
- IBAN: The number of the account the money should go to.
- Payment reference (Verwendungszweck): A short text about the payment so the recipient can match it correctly.