First time joint bill account

melymoos

My partner and I have recently bought our first home together. We want to set up a joint bill account, but both keeping our separate accounts to paid into. Is there anything that we need to know or look out for? Does it matter which bank we choose?

Exodi

Do you both currently bank with the same bank or seperate?

I like that accounts with perks benefit both joint users, usually at the same cost. For example, my partner and I have the Nationwide FlexPlus account (which costs £13 a month whether its sole or joint) and we both get travel, mobile and breakdown insurance on it.

Have you planned around where direct debits will be taken? Presumably the joint account. Have you thought about how you will be splitting your contributions to the joint account (e.g. 50/50, based on income, etc)?

I think this thread will quickly turn into the age old 'how to divide money debate' so you get to look forward to that.

melymoos

Exodi said:

Do you both currently bank with the same bank or seperate?

I like that accounts with perks benefit both joint users, usually at the same cost. For example, my partner and I have the Nationwide FlexPlus account (which costs £13 a month whether its sole or joint) and we both get travel, mobile and breakdown insurance on it.

Have you planned around where direct debits will be taken? Presumably the joint account. Have you thought about how you will be splitting your contributions to the joint account (e.g. 50/50, based on income, etc)?

I think this thread will quickly turn into the age old 'how to divide money debate' so you get to look forward to that.

We use different banks at the moment, the bills are split 50/50 so we will each put our half in on pay day every month. We have very similar wages and have always gone 50/50 and very happy to continue.

Daliah

It doesn't really matter which bank you choose, though you might want one which gives you some rewards. Santander 123 Lite is probably the most attractive, provided you get more cashback than the monthly £2 charge.

Other than that, you should both be aware about the pros and cons of joint accounts.

Sandtree

Exodi said:

I like that accounts with perks benefit both joint users, usually at the same cost. For example, my partner and I have the Nationwide FlexPlus account (which costs £13 a month whether its sole or joint) and we both get travel, mobile and breakdown insurance on it.

Dont most banks offer most coverage as household type cover as standard irrespective of if its single or joint accounts? I know with Barclays the mobile cover is for 4 phones, travel is for the household and breakdown is for accountholder plus 1. 

To the OP - the main thing to consider is that you will be considered financially linked by sharing a single account so if one of you goes off and gets a series of CCJ it will start impacting the credit worthiness for the other by virtue of the joint account.

Brie

Sandtree said:

Dont most banks offer most coverage as household type cover as standard irrespective of if its single or joint accounts? I know with Barclays the mobile cover is for 4 phones, travel is for the household and breakdown is for accountholder plus 1. 

I had an account with Barclays with breakdown and holiday cover but breakdown was only good if I was with the car.  So had to go joint with OH so he would be covered without me being about.  Strangely there was no such rule for the holiday cover.  If he was away without me he would still have been covered.

PRAISETHESUN

Given OP and their partner have just purchased a house, I'd say the risks of linking credit files have already been considered. If using the account to pay for household bills, then the Santander 123 Lite account mentioned above is a good choice. Otherwise, I'd recommend looking at any packaged bank accounts as they often represent good value for money for joint account holders, given one monthly fee provides cover for both people named on the account. The one offered by Nationwide usually gets good reviews, see here for other options: https://www.moneysavingexpert.com/banking/best-packaged-bank-accounts/

thriftytracey

Another Plus for Santandar which we use for our bills.  I think ease of online banking is another consideration.  Santandar is efficient and only needs one authentification (other than setting up payees).

Rob5342

I'd recommend Monzo or Starling as they have good built in budgeting tools, with the ability to split into pots etc. https://www.santander.co.uk/personal/current-accounts/123-lite-current-account is good for cashback on bills, but the app is very basic (although some people might say that's a good thing)

Daliah

Rob5342 said:

I'd recommend Monzo or Starling as they have good built in budgeting tools, with the ability to split into pots etc. https://www.santander.co.uk/personal/current-accounts/123-lite-current-account is good for cashback on bills, but the app is very basic (although some people might say that's a good thing)

To me, it's horses for courses. I got plenty of current accounts with all sorts of banks, incl, Starling, Chase, Halifax, TSB, Nationwide, Santander, Barclays, RBS and Natwest. Monzo is the only one I closed. Each one has their purpose.

The OP asked about bill accounts but didn't specify whether they are after any monetary benefits/rewards, or after management tools, or both, or other. If it's a matter of saving money - not unheard of on MSE - then Santander is likely to be best. If it's a matter of snazzy budgeting tools, I would recommend a stand-alone personal finance manager (EMMA, MoneyDashboard, MS Money, AceMoney etc) rather than tools that lock you into the likes of Starling or Monzo. If it's more about insurances for gadgets, car recovery and travel, Nationwide or Virgin Money or Curve Metal might win. If it's about cashback, there is Chase (though no joint accounts), or RBS and Natwest Reward credit cards. 

badger09

For a joint ‘bills’ account, I would also recommend the Santander123 Lite. 

Work out what your monthly fixed bills (Council tax, gas & electricity, water, phone/BB etc).
Set up standing orders from your individual accounts big enough to cover them, (plus a bit more if bills are variable) and set all your bills to be paid by DD. 

If your bills are less than £500 per month (unlikely if you’re including mortgage repayments) just pay in £250 each per month to meet the minimum pay in.