Moving From Joint bank Account to Separate Accounts

EMcG

Hello there,

I'm hoping that I can get forum users experiences on moving from a joint account to two separate accounts.

At the moment my wife and I have a joint account from which all our bills and day-to-day spending is paid. My wife's attitude to spending is very different from my own and often leads to arguments. She thinks I worry too much and am too controlling. I think she spends without considering whether or not we can actually afford things. A common problem, I'm sure.

My idea was that we should change the current set up so that we each have indvidual accounts into which our salaries go. We then put a set amount each month into a central account out of which come all the payments for the bills etc.

The amount we pay in would be based on our salaries. Tha would mean a 30% / 70% split with me paying the 70%.

Once the bills are paid we can do what we like with the rest of our cash. This would, hopefully, stop the conflict over spending and my wife would feel less controlled. You never know it might even mean that she would think twice before splashing out and take a more mature approach to finances which I feel the joint account hasn't helped to foster.

Is this a reasonable plan? Or am I being hopelessly naive?

Any advice and experiences greatly welcomed.

impster

Sound a great plan in theory. Let me know how you get on. I may need some tips from you if you succeed!

EMcG

My main worry would be that my wife would spend right up to the overdraft limit on her new account and then be unable to put her 30% into the joint account leaving us unable to pay the bills.

456789

Then tell her she can't use electricity for the next month!

scott_lithgows

I total every direct debit,money for food,petrol etc,then split it 50/50 with wife,then she gives me cheque for that amount on her payday minus any direct debits she pays.Child benefit gets paid into seperate account and is used only on the kid.

eg total £1600 for everything.I pay £1400 of the direct debits etc,she pays 200 so £600 cheque to me on payday.
It does work!

EMcG

As our account is with HSBC would it make sense that our individual accounts be with HSNC too so that any funds transfers are as quick as possible?

Or does this not make any difference?

rb10

EMcG wrote: »

As our account is with HSBC would it make sense that our individual accounts be with HSNC too so that any funds transfers are as quick as possible?

Or does this not make any difference?

If you choose an account at a bank that uses Faster Payments (e.g. Natwest, Barclays, Halifax, etc), then transfers between the accounts are instant anyway.

td_007

Given the conditions it is a good option to have an account which holds the money to pay off you monthly bills. As first step I would have the two salaries paid into two different accounts and then open a third account which is solely to hold the money for monthly expenses. This account should be funded by standing order from each of your salary accounts on the day after the salary is received (this avoid either one of you spending all you money before "contributing"). This calls for some planning i.e. you need to calculate all you fixed monthly expenses utilities, mortgage etc. and average credit card repayments and ensure that this amount is available in the "expenses a/c" every month. It would be worthwhile opening individual accounts in HSBC to avoid the hassle factor. However, look to first direct for the cashback or A&L/Abbey etc. which provide 6% interest for the first (read the T&C well). hope this help

scott_lithgows

As above but dont even look at Abbey

*vamps

Sounds like a great idea to me, couldn't your wife set up a standing order to pay the money from her own account into the joint account as she gets paid each month. Seems fair seeing how your spliting the income fairly and not expecting her to pay 50/50.