What is the “description” of a transfer for?
When you make a transfer, there are several fields to be filled in, including “amount”, “destination account” and “description”. So, what is the “description” field for?
Note that this is an optional field. Its purpose is to provide information solely to the beneficiary of the transfer; for example, about the reason why an amount is transferred.
However, be aware that your bank is usually not the beneficiary. It simply performs the transfer automatically. Therefore, there is no reason for it to take into account anything you choose to include in the “description”. This is why you should not use this field to give instructions or information to your bank.
For instance, it is better for you not to enter this field if you have several debts with your bank and you wish to indicate which one you prefer to settle. In this case, if you wish to give your bank specific indications about the destination or allocation of funds, you should – to be on the safe side – accompany the transfer with a document evidencing such indications.
In any event, if you need more information on how to correctly allocate payments, follow our advice.