Top Joint Bank Accounts for Couples, Business Partners, and More

When opening a joint account, there are a few laws and rules that you need to be aware of. These include:

Access

Anyone who is named as an account holder has the right to access the money stored within the account. Thus, all account holders will receive a debit card that is linked to the account. Through these cards, users can:

• Make contactless payments

• Withdraw money from an ATM machine

• Set up direct debits and standing orders

On the contrary side, while all named individuals in a joint account have equal access to the money, they are also equally responsible for paying any charges or fees associated with the account. For example, paying back an overdraft is the responsibility of all the account holders.

Who Can Open an Account

Anyone who is 18+ can open a joint account.

However, these are mostly opened by married and cohabiting couples to manage any shared bills by allowing multiple people to contribute to the account.

Who Can Withdraw Money

All the joint account holders can withdraw money from the joint account. This is regardless of whether or not the same person deposited the money.

Who Can Deposit Money

As is the case with withdrawals, anyone who is named on the joint account is able to deposit the money into it.

All joint account holders are able to withdraw the full balance of the account - as well as any pre-arranged overdraft - if they have agreed to unilateral access. However, this is usually not possible when you and your partner have previously agreed that both of your signatures are required to make any withdrawals.

It is possible to have a personal current account and a joint current account with the same bank. However, in this case, the bank has the right to transfer money from a personal account to a joint account to cover any outstanding debts.

Remember, you are held equally responsible for the joint account - even if you didn’t personally overdraw on the account.

Yes, many banks enable you to have more than one joint account with them, whether those accounts are solo or joint. However, different banks have different rules around having multiple accounts, so you should contact your bank to find out whether this is possible or not.

Overdraft facilities vary according to each individual bank. Some banks - such as Barclays - offer their customers an overdraft facility subject to a check on the credit history of all account holders. However other providers - such as Starling - do not offer this option.

Joint accounts up to £170,000, are protected under the Financial Services Compensation Scheme (FSCS).

As you are the co-owner of the joint account holder, you are therefore liable to pay 50% of any taxable income. This is the case even if the contributions to the account are unequal.

However, this is not the case with Inheritance Tax. If included in a Will, the joint account will be left to the surviving partner. This means that the value of the joint account will be exempt from Inheritance Tax.

Anybody over the age of eighteen can open joint accounts with other people. These may include married couples, roommates, or even parents and their children.

How Many People Can Share a Joint Current Account?

The exact number of people who can share a joint account depends on the bank. It’s a good idea to look around if you intend to set up a joint account with more than two individuals. To cite an example, while Natwest only allows two individuals to open an account, Lloyds allows more than two, subject to approval from the branch.

Who Could Be Excluded from Holding a Joint Savings Account?

Again, the restrictions vary from bank to bank, but the most common restriction is for under eighteen individuals. In addition to this, you may also be excluded from opening an account if either you or your co-holder have a poor credit history.

Can I Have a Joint Account with More than One Person?

Majorly, joint accounts consist of two individuals; however, this is not a maximum limit. Indeed, a lot of banks allow you to add more than two individuals - although the exact number may vary widely with each bank.

Can We Each Have Our Own Debit Card with a Joint Current Account?

When you set up an account, each account holder has a separate debit card. This is linked with the joint account to use for various purposes such as direct debits, standing orders, and ATM withdrawals.

Do You Have to Be Married to Get a Joint Account?

No, it is not at all mandatory! You can open a joint account with anyone regardless of your marital status.

Who Owns the Money in a Joint Bank Account in the UK?

The money in a joint account is owned equally by all the parties that are classed as account holders. This is regardless of how much each person has contributed to the account.

What Happens to a Joint Account When One Person Dies?

If one account holder dies, the surviving account holder will automatically gain control of the account without any Will or the court’s permission. This is due to the fact that the account is regarded as being under the rules of survivorship.

A few important factors that you need to be aware of before opening a joint account are described below:

Do You and the Co-owners Have a Similar Attitude toward Money?

One of the biggest factors to consider is the attitude that you and your co-owners have towards money. If one of you prioritises spending over saving, this can decrease the amount of money you have saved up - leaving you at risk in case of any unexpected bills that need to be paid instantly.

What Happens if You and the Co-account Holder(s) Become Separated or Break Up?

If you separate from your partner, it’s highly advisable to contact and immediately inform the bank. As a result, the bank can freeze the account - preventing either party from owning everything.

Banks can then help you and your co-holders settle any joint expenses you may have - such as outstanding rent, utility bills, and child care. This may be done by agreeing to a fair financial split of expenses. This can ensure that you are able to split up as amicably as possible where money is concerned.

What Happens if Your Bank or Building Society Goes Bust?

FSCS protection will ensure you get your money back if your bank or building society goes bust. You can crosscheck on the Financial Conduct Authority’s (FCA) website if your bank is covered by the FSCS or not.

While a joint bank account certainly has some benefits, it is also associated with numerous drawbacks that you need to be aware of before you take the plunge.

The most common reason why two individuals might enter into a joint account is to split various bills. If you both are putting money into one account, it eliminates the chances of any potential arguments and also makes both parties responsible for paying the bills equally.

However, not all joint accounts are created equally. The three best accounts for paying bills are as follows:

First Direct

Account fee is an important aspect when you’re looking for a joint account. Fortunately, First Direct doesn't charge any fee! Not only that but there’s no minimum balance requirement, so you don’t have to worry about keeping money in the account purely for the sake of keeping it open.

Creating an account with First Direct is easy to set up and use. Everything can be done through the Internet; therefore, no need to head to a branch. What’s more? The users can get access to all online banking features from the mobile app as well.

Starling Bank Joint Account

We’ve all been there. You think you’re within your spending limits, but when you check your account, you wonder where all your money has gone! This can be an especially nasty surprise if there are a bunch of pending payments you forget about.

Fortunately, Starling Bank’s Joint Account is excellent at tracking spending as it offers spending insights in real-time. However, various other providers may have a time delay until you can see what you’ve spent your money on.

It’s not just your own spending that you can keep track of but you can also track your child’s spending habits through the Starling Bank Kite card.

HSBC Advanced Account

While having to go overdrawn is never a nice experience, there are times when it’s simply unavoidable. That’s where HSBC really comes in, as its overdraft can help provide a potential safety net.

Those who qualify can automatically unlock a minimum £1,000 arranged overdraft with a variable interest rate of 38.9%. As with any debt, we strongly advise that you must not borrow more than you can afford and that you pay it off in full as soon as possible.

Achieving your financial goals requires focus and discipline. One of the best ways to do this is to set clear goals. These will help you stay focused, and you’ll be more likely to achieve them.

It becomes easier to manage bills when they are all paid from a single account as this reduces the risk of any bills slipping through the net.

An overdraft can be particularly useful if your finances are going through a lean period and you need a small cushion to see you through until payday arrives. However, the size, availability, and fees associated with an overdraft will vary according to each provider.

Working as a team can ensure that any debt you have is cleared much faster. This can save you a significant amount of money as you will avoid paying exorbitant interest rates.

A joint account is protected under the rules of survivorship. This means that the money automatically transfers to the other account holder if either of you passes away.

Adding children to a joint account allows you to keep track of and manage their spending habits. This can be particularly useful in preventing the child from squandering the money.

An elderly person may also find it useful to add another person to their accounts to manage their money for them. This can be particularly useful if they are not tech-savvy and do not fully understand how online banking works.

Budgeting can be challenging if you don’t know where your money is going. However, a joint account can solve this problem by giving you access to all of your spending decisions in real time.

This can be a great way to spot unnecessary bills - which can help you save a significant amount of money.

Combining your finances with another person can increase the amount of interest you get. Indeed, this can really add up over time - as demonstrated in the example below.

Some banks may offer cashback on your spending. For example, Santander offers 1% cashback on bills and supermarket spending. The more you spend, the more your cashback increases.

Joint accounts are protected up to the value of £170,000 by the FSCS - twice the amount of an individual account.

You can have your Universal Credit paid into a joint account if you choose to.

A current account is the most common type of joint account. They can be managed easily by using an app, internet, phone or a branch visit. Both parties will be given individual debit cards that are linked to the account.

What Are They Useful For?

Joint current accounts are extremely useful for keeping track of daily spending, such as bills, rent and groceries. They can also be used to set up Direct Debits and standing orders.

Average Returns

Please bear in mind that many providers, such as Starling and Monzo will pay very little interest, if any is paid at all. In Santander’s case, the interest rate of 2% AER is limited to £20,000. Meanwhile, Virgin Money offers 2.02% on balances up to £1,000.

Eligibility Criteria

Setting up a joint current account requires all parties to provide proof of ID and proof of address. However, it is important to remember that all parties need to go through a credit check before it can be opened.

This is why it is essential to be upfront and honest about your personal financial health. Failure to disclose a low credit score or past debts may lead to your account being denied.

A joint savings account is similar to a current account, where the co-holders are able to deposit and withdraw money from the account. However, there are also some key differences in the average return on savings and eligibility criteria.

What Are They Useful For?

Joint savings accounts are very useful for saving money. They typically offer higher interest rates than a standard current account, and this can compound significantly over time.

Average Returns

The returns you receive on a joint savings account will largely depend on the type of account you choose to go with. These include:

• Instant access savings accounts – you can access your money at any time. For example, Monzo offers an interest rate of 3.7% AER on its Instant Access account.

• Fixed-rate savings accounts – these provide a higher rate of interest than a standard savings account, but you are required to lock your money away for a set period of time. For example, Starling offers an interest rate of 3.25% AER on its Fixed Saver Account.

• Regular savings accounts – these require you to pay a certain amount into the account each month, in exchange for higher interest rates. For example, Santander offers an interest rate of 5% AER on its Regular Savings account that is fixed for 1 year.

Please note that the exact accounts on offer will vary according to each provider.

Eligibility Criteria

Much like a standard account, setting up a joint savings account will require all parties to provide proof of ID and proof of address.

However, unlike with a current account, applying for a joint savings account won't have any impact on your credit score, as credit checks are unnecessary for opening a savings account.

A joint credit card is when two or more individuals use the same credit card account to make purchases through their own cards.

However, it is the responsibility of the main account holder to clear the balance. As such, it is highly advisable that the co-holders are on the same wavelength when it comes to spending money.

What Are They Useful For?

Joint credit cards can be incredibly useful for boosting a credit score - particularly if one person does not have a good individual score and needs some help to improve it.

By using the credit card of someone who has a higher score, this person may also be able to take advantage of lower interest rates and higher credit limits rather than using their own card.

Average Returns

The average return on your spending will vary according to each provider. While some providers, namely American Express, offer reward cards such as travel discounts, others may offer cashback on your spending. For example, Santander’s All In One Credit Card offers a cashback rate of 0.5%, with up to 15% on retail spending.

Eligibility Criteria

No credit searches are carried out on an additional cardholder, although one co-holder still needs to be accepted for a credit card in the first place.

When applying, each joint account holder is typically asked to sign a document that sets out how the account will be set up. This grants certain flexibility to joint bank accounts for different use cases.

• Either-to-sign – most joint accounts operate on this basis, where each account holder can withdraw money or make payments independently.

• Both-to-sign – in this case, both (or every) parties need to authorise the payments and withdrawals. This comes in handy for business partners, while it can be impractical for couples or housemates.

Some banks, most notably Starling, may also allow you to link your child’s account to your joint current account – this way, you can stay on top of their spending, and manage your family finances through a single outlet.

Several banks offer arranged overdraft facilities for joint accounts. For instance, the HSBC Advance Account and Virgin Money M Plus have some of the most competitive arranged overdraft rates among UK banks.

Some banks also allow earning interest on either current balance, or via linked saving accounts. Virgin Money M Plus account, for example, offers 2.02% interest on deposits up to £1,000 and 2.52% on linked saver balances up to £25,000.

A fixture of online banks (although it’s being picked up by their traditional counterparts), spending insights provided daily and monthly, along with instant payment notifications can help you and other account holders maintain visibility on your account, and stay on top of your spending. Starling and Monzo’s joint accounts are excellent solutions for this.

Using certain accounts can earn you rewards or cashback. For example, you may be eligible for a £200 welcome bonus offered by NatWest Select Account if you switch accounts through CASS using the smartphone app. The Santander 1|2|3 Current Account, on the other hand, offers cashback for insurance premiums, most domestic bills, and mortgage payments to your bank.