What to know about Joint bank accounts
Having a joint bank account can be useful if you have shared bills and responsibilities with someone else. It will be easier to pay for rent, bills and more if you can both put the money into a shared account each month and set up direct debits. This way, you know the money will be paid on time and you can make sure you equally share the responsibilities.
Once you know how a joint account works make sure you have a conversation with your partner to ask all the necessary questions. This way the account will be easy to manage, you will both be on the same page and it won't cause any financial strain.
There are some things you should take into account before setting up a joint account.
Both account holders can withdraw money at any point.
It is vital that you trust the other person as at any point the money can be withdrawn from any of the account holders. Once set up the money in the account is owned by both holders.
The account links you together meaning, your credit score can be linked to theirs too. If you are trying to take out a loan they will look at both credit scores.
If the partnerships takes a turn and you both wish to shut down the account but cannot amicably allocate the money then contact your bank as they can freeze the account until the matter is settled. Or they can help you, with a mediator settle the dispute and arrange the money.
You don’t have to search too far as most banks will offer this option and you can just find the best bank account for you and add two people as the account holder. It’s as simple as that!
What account can I use?
You can set up a completely new account where both people are the joint account holders or alternatively you can add one person to an already existing account as a joint holder as well.
If one or both of you are not already a customer at the bank they will require ID, credit check and proof of address.
Earn cashback on both of your payments
With select accounts you can earn cashback on you direct debits.
For example with the Natwest Reward card you can earn cashback when you make 2 or more direct debits over £2 each month. So pulling your direct debits together could earn you more money in the long run.
Consider a joint saver
This is strictly for saving and could be helpful if you have money left over to put in a savings pot. This could help you save together for a big purchases you both want, like an expensive piece of furniture, a holiday, saving for a house.
You should agree at the start about how much you want to put in and what the money should be used for. Having a joint saver should only be done with someone you trust completely.
This can be done by finding the best savings bank account or by adding the second person as an additional account holder.
You can access the account online
When first setting up certain banks may ask you to go into the branch, however after that you will be able to manage your joint finances through a banking app just like you would with any other.
This will make it easy to track and control the money going in and out of your account.
