Joint Bank Account (Max No. of People?)

funkymonk23

Hi,

Does anyone know what the maximum number of people who can open a joint bank account is?

This is not for business purposes, a group of friends and I are saving for a group holiday and a number of them are particularly bad with money i.e. a large glass jar would definitely not work!

Many thanks,
Tim

CLAPTON

funkymonk23 wrote: »

Hi,

Does anyone know what the maximum number of people who can open a joint bank account is?

This is not for business purposes, a group of friends and I are saving for a group holiday and a number of them are particularly bad with money i.e. a large glass jar would definitely not work!

Many thanks,
Tim

if they are bad with money, why do you want to be financially linked via a bank account to them?

bowlhead99

CLAPTON wrote: »

if they are bad with money, why do you want to be financially linked via a bank account to them?

I'd second that, as the bank will tie the account holders' names together on what is reported to credit agencies and someone enquiring about your history in future will see the link to the other names.

Some financial institutions will allow you to have one other co-account holder, others advertise 'one or more' so you would have to check with the bank concerned.

When I was looking at buying a house and getting a joint mortgage a couple of years back, the maximum number the land registry would legally acknowledge was 4 and so any other owners would only have beneficial ownership through a deed of trust and it would be too complex for the mortgage company to want to touch it(no I didn't need that many).

But I don't think the FCA/PRA have a rule about max joint beneficial holders on a cash account - for example a partnership can have an account - so it would come down to a practical point with the individual bank concerned about how many signatories their system could accommodate.

You could always enter into a signed agreement with the other friends about them paying into your account by standing order and how you hold whatever they put into the account on trust for them beneficially - maybe even open up a brand new account in your name specifically for the purpose. However you would need to tell everyone what share of the interest they earned which is a headache and if you picked a non-interest paying account some of them would say, hey, I don't want to pay into your account when I'd earn a better interest rate on my own.

Of course, if the interest amounts they give up are small or they are not the type of people who have ever saved properly for anything in their life other than via glass jar, they may not mind missing out on interest at all - especially if it helps them drip money away into their holiday fund without their missus noticing they have a spare £1k sloshing around at home.

A signed agreement among yourselves would not necessarily be acknowledged by the bank and they would not deal with the other parties, but if you have something in writing just between you, it gives everyone some comfort that nobody will do a runner.

kidmugsy

funkymonk23 wrote: »

a large glass jar would definitely not work!

Equip the jar with a mousetrap.

colsten

A joint bank account is no guarantee that money doesn't get squandered away by an irresponsible party as the account holders have the same rights to the money.

If they want to entrust the money to you, why don't they just give it to you and you look after it until it is needed?

soulsaver

You could form a (holiday) club - agree terms, agree a treasurer and set up a bank account accordingly. Most banks allow an account for clubs but no necessity for a joint account for every member.

Zkr65

Some good replies already I see!

I cannot stress enough how important it is to NOT financially tie yourself to people unless they are impeccable with their money..

Example please Chris? Sure.. why not:

You, Miss B and Mr C have this little holiday fund.. balance £500.. everyone is on the account as joint.. hooray. Mr C didn't tell you, but he has a personal account (Just him.. no other holders) but It's horribly in arrears..

Now, because you are financially linked.. his bad financial dealings (even though you have nothing to do with the account) suddenly appear on your credit file.. Bye bye mortgage prospects.. thanks Mr C.

Most providers will allow you to have 2 holders on a standard current/savings account.. kids accounts 1 kid + 2 parents/guardians you can get book based accounts such as treasurer's trust accounts which are for organisations and clubs etc which allow lots of signatories.. (varies but can be up to 12 in some cases)

Best to have the account in the name of the most responsible, and they make sure everyone pays in..

Linking accounts with someone not very fiscally adept, is like throwing your Credit 'Score' in the bin

If the group doesn't like to idea of one person holding the "mullah" arrange a guarantee program outside of the banking system.. I.e. come to an arrangement where if something happens, parents/friends can bail them out..