Advice re separate account for bills

Miss_StressHead

Hi,

I realise that this is probably a very dim question but bank accounts completely baffle me. My OH and I are moving in together and we want a joint account set up which we'll transfer money into by standing order every month ready to pay all direct debits. The only problem is I don't have a clue what type of account we should apply for.

We'd like an overdraft facility ideally, just in case, but can you only get these with Current Accounts? We each have existing Current Accounts and I'm not sure if you can have two?? We don't want debit cards, but we'd probably need internet access. And does a new bank arrange to transfer all direct debits and stuff for you when you open an account, or do you have to do it yourself? And do companies generally charge you if you need to change your bank/DD details?

Sorry for the barrage of questions - I know I sound dense but neither of us have ever changed bank accounts before and we don't really know where to start

Thanks in advance!

thatsean

My thoughts....

Miss_StressHead wrote: »

Hi,

I realise that this is probably a very dim question but bank accounts completely baffle me. My OH and I are moving in together and we want a joint account set up which we'll transfer money into by standing order every month ready to pay all direct debits. The only problem is I don't have a clue what type of account we should apply for.

We'd like an overdraft facility ideally, just in case, but can you only get these with Current Accounts?

Yes

We each have existing Current Accounts and I'm not sure if you can have two??

There's no practical limit, open as many as you feel you need to in order to manage your finances, the only limit would be your credit score, or your bank's internal policy

We don't want debit cards, but we'd probably need internet access.

You'll get a debit card, unless you go for something like the Barclays cash card account and choose the ATM option rather than debit, other than that there are lots of basic/standard accounts to choose from - would it simplify things to use the same bank?

And does a new bank arrange to transfer all direct debits and stuff for you when you open an account, or do you have to do it yourself?

Some banks offer a switching service, this can lead to a lack of certainty over which debits are set up, and when they are coming out. If you have an overdraft that will cover your payments then this isn't really an issue, but you may find that if you transfer them over yourself, then you know exactly where you are. Your choice really.

And do companies generally charge you if you need to change your bank/DD details?

No

Sorry for the barrage of questions - I know I sound dense but neither of us have ever changed bank accounts before and we don't really know where to start

Thanks in advance!

Miss_StressHead

Thanks Thatsean, that's really useful :beer:

CLAPTON

but.............. opening a joint bank accout is really easy..basically the same as opening any other current a/c.

however if the worst happens and you split up then closing it is much much harder: so think very very carefully before you doing this.

Miss_StressHead

Thanks for the advice, Clapton. What I didn't say in my OP is that we're actually getting married next week so if we DO split up then I'll just leave it to the divorce lawyer! :rotfl:

The reason for the joint a/c is because my OH has a big hole in his credit history (he lived abroad for several years) - he's slowly been building up his rating and is hoping to boost it further by having his name on all the household bills, etc. But the thing is, he tends to spend money as fast as he gets it and I wouldn't trust him as far as I could throw him with managing a monthly budget, so I figure it's best we have a joint a/c with agreed monthly standing orders as at least this way I can keep an eye on where things are going.

We're not even married yet and I'm taking control of his finances already

YorkshireBoy

Miss_StressHead wrote: »

...my OH has a big hole in his credit history (he lived abroad for several years) - he's slowly been building up his rating and is hoping to boost it...

That's a double-edged sword. In trying to "boost" his credit rating he may damage yours through the financial association you'll create by the joint account (unless you already have a financial association through a mortgage/loan for example?).

KawaiiL

I'm in a similar situation, just moved into a (student) flat with 3 friends and we want to set up a similar thing to pay bills...question is, which one do we go with? We probably want an overdraft facility, no tie-ins (if there's the chance that there may be some) and someone to easily contact for help. Any suggestions?

Lokolo

KawaiiL wrote: »

I'm in a similar situation, just moved into a (student) flat with 3 friends and we want to set up a similar thing to pay bills...question is, which one do we go with? We probably want an overdraft facility, no tie-ins (if there's the chance that there may be some) and someone to easily contact for help. Any suggestions?

So you want a joint account for all 4 of you?

A big fat NO

Do not do this.

Have 1 person incharge of each bill.

1 for gas, 1 for electric, 1 for water, 1 for tv licence and other one offs.

getmore4less

Miss_StressHead wrote: »

Thanks for the advice, Clapton. What I didn't say in my OP is that we're actually getting married next week so if we DO split up then I'll just leave it to the divorce lawyer! :rotfl:

The reason for the joint a/c is because my OH has a big hole in his credit history (he lived abroad for several years) - he's slowly been building up his rating and is hoping to boost it further by having his name on all the household bills, etc. But the thing is, he tends to spend money as fast as he gets it and I wouldn't trust him as far as I could throw him with managing a monthly budget, so I figure it's best we have a joint a/c with agreed monthly standing orders as at least this way I can keep an eye on where things are going.

We're not even married yet and I'm taking control of his finances already

Might be better if you just set up a new account for bills. then he canot "raid" it when he is spent up.

He can have the utilities in his/joint names without the joint account to pay them.

gfplux

Just a word of caution.
Is your other half building up his credit rating so he can borrow more and spend more!!

Why would you need an overdraft "just in case" are you expecting things to go wrong?

If you have a joint account with standing orders going in from you both to cover all the monthly bills nothing should go wrong. You just have to keep your eyes open, check the statements EVERY month and you will be OK.

good Luck