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Setting up a Joint account

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Me and Sam want a Joint account together so we can Save for the wedding, If we keep the money in either of our accounts, the likelihood we'll both spend it is quite high. We're both with different banks right now, She's with Loyds and I'm with natwest and Yorkshire bank.

I've never looked into a joint account before, Do you have to both be married to set one up? Do we have to change our own current accounts? Or would it be eaiser, if we just transfered the money into the Yorkshire bank, and didn't spend it?

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You shouldn't have to change your bank accounts. There's nothing to stop you (and there are couples who do this) keeping your current accounts and opening up a joint account as well. That way, you also have money to spend on what you want / need and another account to put money aside for the wedding.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You don't have to be married, or even in a relationship, to set up a joint bank or savings account.

    Just remember two main things:
    1. With a joint account you become "financially linked" on credit reports. If one of you has a good credit history and one a poor or non-existent one, this might not be a great idea.
    2. Ownership of funds in a joint account is joint-and-several, not 50/50, which means one party to the account can clean it out.

    I don't know when your wedding is, but you might be better off looking at separate regular saver ISA accounts. These are tax free (usually you get taxed on any interest you earn), but can't be in joint names. The interest rates are often better- although not always. There's usually a penalty if you withdraw early, to discourage you, but if you need to get at it in an emergency you still can.

    http://www.moneysavingexpert.com/savings/best-cash-isa
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Pretty much everything Arctic said.

    I've got a joint account, we use it for day to day living expenses and bills - so in theory it doesn't tend to run much of a balance. Savings wise we've got separate ISAs and various other bits.

    If you're planning on saving for something far off then two notice savings accounts might be the best option. Each put a certain amount a month in. If you can; on a standing order shortly after you get paid can work best because then it doesn't stay in your current account tempting you. Little and often is a good approach to savings for many people.

    If you go for notice accounts, then there's an extra motivator not to take money out.
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