Saving with Friend

katva5528

Hi - my first post, so bear with me

My friend and I want to save up to start a business together (2-3 years down the line) and have been looking at how to put the money away.

We're both fairly bad for spending what's in our accounts so I've been looking at a prepaid card account, then cutting the card up and making payments into it from the bank.

Thoughts? Is there a better way that keeps our credit files separate?

Thanks
Katva

alanq

I think that such accounts can only be held in one name with others allowed access to the account with a separate card. (I may be corrected on this point).

No FSCS cover for the funds.

No interest - though most savings account pay next to nothing.

Even if the card has been cut up you could use the details make online purchases or order a replacement card.

Some cards charge a fee if no payments are made for a period.

If the objective is to avoid financial connection I would investigate the possibility of a joint savings account (requiring both signatures?).

If you cannot trust yourselves to manage your own accounts sensibly do you really think that you will ready to run a business's accounts sensibly?

jonesMUFCforever

My honest opinion - open separate accounts in your own names!!

A lot can happen in 2 years - you might not have the career aspirations etc etc - the worst thing that might happen is your friend walks away with all the cash.

If you spend what you earn doing it the way you describe through a pre paid card (complicated and costly or what?) will not change a thing IMO.

pmduk

Wy not go for notice accounts in your own names?

Nine_Lives

katva5528 wrote: »

We're both fairly bad for spending what's in our accounts s

On your own admission you both have a problem with spending.

So what would happen if one of you sorted this out & started saving, yet the other one carried on spending out of the account?

I guess the one saving wouldn't be too impressed.

Separate accounts for me.

CLAPTON

sounds a bit like a nice dream but having a joint account might well lead to a nightmare

don't do it.

fozmcfc

I agree with jones (not often I agree with a Utd fan lol), separate accounts completely.

Only when you are ready to set up the business, then pool the money together and get it all made legal and above board.

One of the first things my mother said to me when I got a job was never ever set up a joint account even with your future wife. Perhaps she was being extremely sceptical but having seen people split and accounts needing two signatures, scraped over, I think she may be talking sense.