A joint bank account is simply a current account designed for two or more people. They can be great for shared costs, such as bills, but watch out for the pitfalls. Here we outline the pros and cons and how to find the right account for your needs.
Joint bank accounts are most commonly used by cohabiting couples, although you can open one with a family member, housemates or friends.
The main benefit is to make it easier to manage shared costs and expenditures, such as rent or mortgage repayments, utility bills or groceries. However, a joint account could impact your credit rating and your privacy.
This article will cover:
- Why you might open a joint account
- Is a joint bank account a good idea?
- Can a joint account affect my credit rating?
- Which bank is best for joint accounts?
- How to open a joint bank account
Related content: The dark side of joint finances
*This article contains affiliate links that can earn us revenue.
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Why you might open a joint account
Joint accounts are often used by:
- Married couples or those in civil partnerships
- Cohabiting couples
- Students and friends
- Business partners
It is worth noting that you do not have to get rid of your personal account if you want to open a joint account – you can have both. We have outlined the top, independently rated current accounts here.
If you are saving towards a common goal, such as a house, a joint savings account might be worth considering.
As joint bank accounts are most common for cohabiting and married couples, this article will focus there.
Do I have to be married to open a joint bank account?
No, you don’t have to be married or in a civil partnership to open a joint bank account. In fact, you can open one with pretty much whoever you want to, provided they:
- Are over 18 years old
- Live in the UK full-time
- Meet the eligibility criteria for the account
Having an account to which you both (or all of you) contribute can take the stress out of managing any shared expenses you might have. It is also invaluable for circ*mstances where one partner’s income is greatly reduced, for example having a baby or a period of redundancy.
Both of you can choose to have your income paid into the account, will have a debit card, and be able to set up regular Direct Debits and standing orders.
Is a joint bank account a good idea?
If you and your partner are on the same page financially, then having a shared account can be a great money management tool – you both know what is going in and out.
But there are risks involved. If you are a saver and they are a spender, for example, you could be heading for big problems.
Your partner could run up an overdraft or even withdraw the full balance plus any arranged overdraft without your permission – unless you have specified that both signatures are required.
If that wasn’t bad enough, both account holders are responsible for the whole of the debt, even if you were not responsible.
If you have both a joint account and an individual account with the same provider, the bank or building society could even transfer money from your personal account to cover the joint account debt.
Using a joint account to manage bills alone can help to reduce the risks involved.
Can a joint bank account affect my credit rating?
The act of opening a joint account itself won’t affect your credit rating but your choice of partner could – for good and bad.
If your other half has a spotless credit record, it could make it easier for you to borrow money, whether for a mortgage or a mobile phone contract.
Conversely, if they have a chequered financial past and a low credit score, opening a joint account together could damage your rating.
Take a look at our article on the dark side of joint finances to find out more about the risks, and how to protect yourself if a relationship turns sour.
Which bank is best for joint accounts?
The right bank account for you will depend on how you plan to use it. There are lots of options to choose from but some banks, such as Starling*, will only allow you to set one up together if each of you already has a personal current account with Starling.
If your account activity will mainly focus on bill-paying, for example, then a current account that offers cashback on bill payments could be a sensible choice.
For other shared expenses, such as groceries and meals out together, you might prefer a fee-charging packaged account, which comes with extras such as free travel insurance. The benefits will generally cover you both for just one monthly fee.
If money is tight, an account with a low-cost overdraft will provide added protection in case one of you is late paying your share.
Alternatively, you may select a joint account to take advantage of a high interest rate offer on the balance. If you are saving up for a long-term goal such as a property deposit, a joint savings account may provide a better interest rate than a joint current account.
As with all bank accounts, check that the bank is authorised and regulated by the Prudential Regulatory Authority and covered by the Financial Services Compensation Scheme.
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
 | FlexDirect Account | 5.00% | Branch / CashCard / MobileBanking / Online / Telephone | ||
 | Kroo Current Account | 4.35% | £1 / £85,000 | MobileBanking / Mobile | |
 | Santander Edge Up | 3.50% | £1 / £25,000 | Branch / CashCard / MobileBanking / Online / Telephone | |
 | Current Account | 3.25% | CashCard / MobileBanking / Online | ||
 | Club Lloyds Current Account | 3.00% | £4,000 / £5,000 | Branch / CashCard / MobileBanking / Online / Telephone |
Powered by data from Savings Champion
How to open a joint bank account
You can open a joint account online or in a branch, just like with an individual account. The bank will first need to run an eligibility and credit ratings check on all of the applicants.
You’ll need to supply several documents during the application so the bank can verify who you are:
- Proof of address, such as utility bill or bank statement
- Proof of identity, such as passport or driver’s licence
You will generally need to be at least 18 and have a permanent UK address to open a joint current account with a bank or building society.
You can either have both your incomes paid directly into the account or, if you are keeping your personal accounts, agree with the other person how much money to pay in each month.
Can I open a joint bank account online?
Yes. Joint bank accounts function very similarly to normal current accounts, and you can open and manage them online in the same way.
Who owns the money in a joint bank account?
The money – and any debt – belongs to each account holder equally but you can decide on how access is granted at the start.
Everyone has to sign a mandate when opening a joint account. This is the formal agreement that details whether each holder has the right to make withdrawals independently, or whether such transactions must be authorised and regulated by all joint account holders.
You can choose between:
- Either to sign: Anyone named on the account can make changes or spend the money in it
- Both to sign: Any changes to the account, spending or withdrawals need the permission of both joint current account holders
If you end up having problems with your joint account holder, cancel the mandate as soon as you can,. This freezes the funds in the account so no one – including you – will be able to withdraw money.
You can do this by phoning the bank or making an appointment to do so in a branch. The bank or building society will then notify the other joint account holders.
Freezing your account may cause problems with any direct debits or standing orders. It is important to get those transferred to another account so that you don’t risk missing a payment and going into your overdraft.
The bank will only unlock the joint current bank account once everyone agrees on how to split the money. If you can’t reach an agreement, you can let the courts decide who gets what.
If you are splitting up with your partner, we have more on the financial side of divorce.
How to close a joint bank account
If you no longer need your joint account, perhaps because you are splitting up, then it is best to close the account down.
You first need to make sure that any debt is paid off and any regular payments on the account are settled. Either cancel or divert to another account any direct debits or standing orders to ensure that you don’t risk missing a payment.
Equally, you need to arrange with the other account holder what to do with any money left in the account.
Depending on your provider, you might be able to close your account online, by phone or in branch.
Pros of having a joint account
- Joint bank accounts offer a transparent and fair way to manage shared expenses.
- Paying in a set amount each month makes it easier to stick to a budget and pay bills.
- You can both monitor the account and run it together.
- A joint savings account can also be useful for shared goals, such as buying your first home, getting a new car or saving for a holiday.
Cons of having a joint account
- Each joint account holder usually has the right to withdraw the full balance – plus any overdraft.
- If one joint account holder empties the joint account – plus the overdraft – there is no legal avenue for the other account holder to force them to return it.
- If the account goes overdrawn, all account joint holders are liable for the full amount.
- Opening a joint bank account with your partner links your credit files, so if they have a poor credit score, yours could suffer too.
For inspiration, read how couple Ryan and Carrie manage a joint bank account despite radically different money mindsets.
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