Joint account for house rent

orionmoo

Basically me and my friends have just got a house for the 2nd year of uni, we're sending off the deposit soon. The rent is £390 each a month, so that's £1950 a month. The rent needs to be sent as one lump sum to the landlord so we'll be setting up a joint account. I was wondering if people could advice which would be a good account to go for, considering there'll be over £2000 (inc money for bills) going into the account each month (but then £1950 coming out almost straight away again one the 1st of the next month to pay rent). I've heard that some banks give you like... £100 bonus if you deposit over a certain amount and have say over £1000 in each month, or give you a £5 flat payment each month. Would you recommend one of these? Or will we not be eligible for it as the money will be going back out of the account about a week or so after it's gone in?

Cheers for any help

glider3560

Don't do it.

When you open a joint account, you'll be financial linked for up to 6 years after the account closes. This means that if one of them has/gets a bad credit record, it will reflect on you.

Also, it one of them works up an overdraft/fees/etc on a joint account, you are all liable for the debt.

Kylie

Agree with glider3560

d00fus

As the others said don't set up a joint account. Just set up an account in one of your names and pay your rent/bills etc into this account. You could use any of the accounts offering a reward at the moment, such as Halifax's Reward account or the A&L Premier, see the bank accounts guide on the site for a list of them.

orionmoo

hm... didn't know that about bank accounts! why on earth do they keep you linked financially after the accounts closed?

glider3560

Also you would need EVERYONE's permission to close the account. This is easier said than done when you've all gone your own ways!

CLAPTON

orionmoo wrote: »

hm... didn't know that about bank accounts! why on earth do they keep you linked financially after the accounts closed?

1.once you are financially linked you stay financially linked until you take positive steps to break the link

2. if you have a joint bank a/c then you will be financially linked

3. after your happy time in your house you will need to close the a/c.
There must be nothing owing on the a/c before you can close it.
Some banks want a form signed by all five of you.
For whatever reason this may prove difficult.


Basically just don't do it.

bristol_pilot

glider3560 wrote: »

Don't do it.

When you open a joint account, you'll be financial linked for up to 6 years after the account closes. This means that if one of them has/gets a bad credit record, it will reflect on you.

Also, it one of them works up an overdraft/fees/etc on a joint account, you are all liable for the debt.

Or more precisely, EACH of you is liable for 100% of the whole debt. Worst case scenario goes like this - housemate racks up £max overdraft and disappears. Bank comes after YOU, because they can't find the other guy. You are forced to pay off the debt. Bank refuses to close the account, as all signatures are needed. Absent housemate racks up another overdraft. Bank comes after you again. Repeat until bankrupt.

Also, any one of your housemates would be legally entitled to draw out all the money in the account and spend it, regardless of who put it in there or who it 'belongs' to. That's because it belongs 100% to EACH of you - first to draw out all the cash and scarper gets to keep the lot. Perfectly legally.

As others have said - don't do it!

orionmoo

Hm, so you all suggest one person takes charge of the house finances and and opens a new account in just their name?

CLAPTON

orionmoo wrote: »

Hm, so you all suggest one person takes charge of the house finances and and opens a new account in just their name?

no we are saying that a joint a/c isn't the answer

getmore4less

It could be allready too late if this is not individual agreements for the rent!

Have you allready signed the tenancy?

DON'T unless you are sure you are only liable for your own part of the rent.

Landlords love it when they can chase every one for the rent when someone drops out and disapears.


How are you doing the utilities another nightmare if done wrong.