Joint Account

emmahobnob · 3 April 2005 at 12:32PM

Hi,

I need to open a joint account for myself and my partner to pay the mortgage, bills, childcare etc out of. We will both keep our own seperate current accounts, with our salaries going there. Then we'll set up a standing order to pay money into the joint account. Due to the nature of the account, it should always be in credit. Is there any way we can make that work for us? What's the best account in this scenario? Is there a better way to pay regular bills?

Many thanks,

Emma

waterbaby · 3 April 2005 at 1:49PM

Emma,

Me and my partner have the same setup, and it works really well; we are always in credit.

Add up the monthly bills, add a bit more initally for a comfort zone (to avoid going negative), then split it however you choose (equal, proportional to salary,.. etc).

Each set up a standing order and pay that every month by standing order from your personal accounts. Then set up direct debits from your joint account for the bills (check when your money will actually reach the joint account).

Then sit back and watch! (but do watch).

I have found it best to choose to pay a fixed amount per month for everything possible. The only thing I can't fix is the food bill.

I arrange all of the bills to be paid out as soon as the money comes in (I run the account). The mortage is on daily interest so it makes no sense to hold that payment back, and I would rather make sure all the bills are paid before we decide to watch a film, eat out etc.

The best account depends on what you want to do with it, in the absence of any other factors I'd look for the best interest rate. Also think whether you would like it with one of your banks. I like this as I can move money fast if required, but you have to be sure not to go wrong with either account otherwise they might take from one to repay the other, which could screw things up for you.

oscardog · 3 April 2005 at 3:40PM

We also have this arrangement and we pay our salaries into our own accounts then each have a standing order into a joint account.

All bills are by D Debit and so we know pretty much exactly how to budget.

The only down side is that the money transferring in can take up to the 10th of the month due to bank transfer speed (v slow) so we always carry some balance over each month.

We also pay any surplus each month into a savings account as well as a regular sum into the same savings account.

We use the Halifax as they pay a decent rate of interest and have the cashback debit card.

BenL · 3 April 2005 at 4:00PM

We also have this arrangement setup.

We use Smile for the joint account.

I get paid earlier than my girlfriend so my money goes in to clear the bills at the start of the month.

Her money then tops up again for the rest of the month.

Smile gives £500 overdraft as well but its not used.

Any spare money at the end of the month is moved to Alliance and Leicester online saver and the cycle starts again, unless we need anything big and extra money fills in from the savings account.

Ben

klondyke · 3 April 2005 at 4:20PM

We use Cahoot for joint account and also have both separate and joint savings accounts with them. Pensions (no salaries:-( ) go paid straight to joint current. We keep an agreed amount in for bills, credit cards (min or full, depending on state of stooze!) etc, all paid by dd. Email alert from cahoot if we go under our limit, as well as any time anything goes in or out. When in surplus, depending on interest rates etc, money shifted instantly to internal cahoot saving accounts or, takes a little longer, to Egg (Ing or Another when Egg intro rate finishes (cahoot maxed out:-)).

We probably could squeeze more out by using different accounts in a similar way, but have found cahoot more reliable than others re dds etc.

margaretclare · 3 April 2005 at 4:28PM

Hi all

I posted this earlier on the Silver Savers board, but maybe it's appropriate to add it here:

<<I heard of a horrendous case not long ago. A woman was left a widow, husband's estate was all going to probate, his bank were the executors. She had NO INCOME and no funds at all that she could access apart from her share of the married couple's state pension.

Since hearing that we've decided to open a basic joint account just to pay the normal household bills (by direct debit). At present they go from my account. Although we've both had reasons to distrust joint accounts (from former marriage partners!!) we're now in a much more open and trusting relationship and we can see the benefit of doing this.

Can't imagine anything worse, being bereaved AND having to worry about e.g. the electricity being chopped through not having money to pay for it.>>

Margaret

emmahobnob · 7 April 2005 at 7:47PM

So I guess what I'm gathering from this is just go for the account with the highest interest rate!

Thanks everyone for your replies, and it's nice to know there are lot's of happy couples out there and that sharing an account can be done.

Does anyone have any accounts set up where both partners have to sign something for money to be withdrawn etc? I'm not really considering it, but I'd be interested to know how that works...

Thanks again,

Emma

grumbler · 7 April 2005 at 9:08PM

As far as I remember (not sure) you will have to make a choice in the application form between something like 'both signatures required' and 'any signature required'.

BenL · 7 April 2005 at 9:45PM

There will be some accounts that are both to operate but your functionality will be seriously limited.

No transactional access on online banking, no ATM withdrawals, cheques with both of you.

Bill Payments will have to be done on the phone with both of you answering security questions/giving passwords.

Only really useful for business/clubs/charities/pension trustees TBH.

Ben

Joint Account

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