Joint bank accounts - what's the point?

2Ronnies

We're just looking at ditching our original, unswitched, 'olde worlde' bank accounts and have seen all the articles on best accounts, but there doesn't seem to be a 'best joint account'. Is there any point in opening a joint account? Would we be better just opening 'recommend a friend accounts' and pocketing the money or are there accounts out there that offer a service to joint holders that we might find interesting?

Conversely - I suppose there could be reasons why we shouldn't oppen a joint account (eg tax).

Any advice would be gratefully received!

Beate

I don't think there is a special incentive from banks to open joint accounts. And consider this: By opening a joint account you are forming a financial link to the other person. That is only a good idea if both your credit ratings are good.

gt94sss2

If you are married and have separate bank accounts it often makes sense to have a joint account as well, depending on how you organise your finances.

Also, in case you get cheques etc, to 'Mr and Mrs..'

Regards
Sunil

Nick_C

If you die, your partner has instant access to your money. That's the only advantage I can think of!

a&akay

2 readily spring to mind.

With Barclays Additions Plus on our joint account both my wife and I get full RAC recovery from anywhere in the UK as a passenger or driver. With all of the other benefits this account offers I believe this is a good deal if you add up the cost of all of its individual elements. We certainly have saved a significant monthly sum from all the insurances we previously had separately.

I am also a joint account holder with my Mum who lives 80 miles away. She pays in her pension and savings etc into this account. She has had a broken hip and is now unable to walk much. I can now undertake nearly all of her payments online on her behalf eg Car Tax, change of utilities to cheaper provider, purchases online within days for things she needs etc (she is not on the internet). She just rings and tell me what she wants. She still gets paper statements and can see where her money is going.

EagerLearner

Joint account is a great idea for bills, then keep a current account fror yourself and one for your partner for your individual money. Mr EL & I put £225 each into our joint account per month for bills, the rest of our wages are split between our 'pocket money' and ISA savings. This ensures you both feel independant and that bills are taken care of.

Of course, you need to trust eachother - in my last relationship he put the joint acc into serious overdraft which I had to pay half of when we split up!

Most joint accounts are subject to similar interest rates to sole accounts - Halifax offer a good rate of interest and you may be able to still get the £100 incentive?

Sagaris

My OH is on a DMP at the moment - I didn't realise it could impact on my credit rating when we took it out! But since then I've still been able to get any credit I've applied for (except M&S, but then they re-considered, but I thought stuff them!), so no real impact in 3 years or so.
Plus with a joint bank account I get to spend all his money! :rotfl:

noh

Al_Mac wrote: »

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No the account will be frozen.

No it won't
On presentation of the death certificate the deceased persons name will be removed from the account. The surviving account holder then continues to use it as normal. A joint account is not frozen on the death of one of the account holders

Nigel

noh

Al_Mac wrote: »

So how would probate work then?

From http://origin.direct.gov.uk/en/RightsAndResponsibilities/Death/Preparation/DG_10029468

"The deceased person may have held money with another person in a joint bank or building society account. Normally this means that the surviving joint owner automatically owns the money. The money does not form part of the deceased person's estate for the purpose of administration and therefore does not need to be dealt with by the executor or administrator. However, a deceased's person's share in joint property is treated as part of their estate for inheritance tax purposes, both on death and on gifts made during their lifetime."
Probate is needed to access funds that are part of the estate, joint accounts are not treated as such.

Nigel

noh

In the extreme if all the deceased persons assets are held in joint accounts no grant of probate would be required.

Nigel

noh

Joint accounts aren't frozen on the death of one account holder. Accounts with a sole account holder would be frozen on the death of the holder.
IHT is still due on the portion of the account attributed to the deceased.
Its not treated as part of their estate for administration purposes but is treated as part of the estate for IHT purposes.
So probate isn't needed to get access to the money, the joint account holder automatically has access but the proportion of the account owned by the deceased has to be declared for IHT purposes.

Nigel