Joint Bank Accounts (for six)

SG_crazy

Hi there, after a brief bit of advice if possible.

It is necessary for myself and 5 others to setup a joint current account as we share a house and feel this would be a better way to pay the shared bills. I assume people will indicate the risks of this but we do have faith in each other and have no issues sharing the payments currently.

However, to manage our finances better the plan is to pay in a direct debit of £40 each monthly into the account. That’s £240 per month. Since out gas/electric/water are on pre-pay meter, it would mean any one of us could go to the post office with the debit card of the bank account and top up the pre-pay cards.

My questions are basically,
-Can six people have a shared current account (if so, any particular bank. I bank with Natwest and have done for four years so I'd prefer to stick with them)

-Are there any issues over having a shared debit card

-How does authorisation of payments/bank account changes normally work. I hope that all six have to sign to agree to these.

Many Thanks

CLAPTON

Basically don't do it

Complete madness

You will be jointly and severally responsible for the account

so if one person refuses to pay then you will be responsible for repayment


If one person withdraws lots of cash then you will be responsible for repayment

if one of you has a bad credit record then you are all linked together and so will all suffer for at least six years

Basically, let each person accept responsibilty for one bill each and when it comes in each pay a sixth. Then at least your liabiltiy is limited to your bill.

SG_crazy

Thanks. I had never considered the issue of a single person having bad credit reflecting upon others. In terms of withdrawing money/making payments that shouldn't be made I am not too concerned (I know there is a possiblity) but we are all educated and have had trust in each other handling money for quite a while.

Still, I do believe now that it isn't the best way to go. Unfortunately, we don;t get bills as its pre-pay hence having a team pot of money to use. Obviously though a pot of money isn't as safe as a bank account. I think I need to go back to the drawing board...

~Beanie~

SG_crazy wrote: »

-How does authorisation of payments/bank account changes normally work. I hope that all six have to sign to agree to these.

Usually this means that the mandate would have to state 'all to sign' and in that case, you wouldn't be allowed a cash card as this would mean that all six would not be authorising the withdrawal.

CLAPTON

Its not about 'trusting' people but stuff happens... You dont say your situation but things like.. failing exams/ losing job, nervous breakdowns, family crisis, new boys/girl friends (relationships change things)... just don't go there...

jonesMUFCforever

Most banks will offer just 4 names on a joint account - no more.

BlondBoy

Depends on the relationship between you really.

I share a house with three others, and they're all trustworthy. We have an account where the rent is paid into which is in one of our names, but clearly marked as a 'Rent Account', so when the statement comes in, we pin it on the fridge, so all can see. Rent is paid by Standing Order.

In terms of bills, we split them so they broadly even out. eg, one person takes the gas bill, another takes the TV licence and Sky, another takes electricity and insurance. We occasionally trade off each other, but usually there's a maximum of £10 a month owing either way - usually the price we pay for a harmonious house.

The rent payment is completely transparent - name and shame the late-payer! - and if the TV or the gas goes off, we know who has to stump up the cash straight away.

All that said, if you're on meters etc, it's a bit harder to work the latter part. But your greatest exposure is the rent - so the first part maybe worth thinking about.

Depends how much you trust your compadres really. And one person needs to be prepared to take the lead - checking internet banking every rent day and making sure latepayers are chased.

Wouldn't get an account that everyone can access. But would definitely get an account that everyone could see.

dellwear

Would you not be better having a a small book where you write down the transaction (and put the receipt in) when you buy something and add it all up at the end of the month. You can then divvy up any difference.

If you're educated and trust each other there should be no problems

kodokan

We did just this as students. There were four of us sharing a house, and we put a lump of money into a joint account at the beginning of each term (termly grant/loan cheques) and then just paid the bills as they came in.

The account didn't have a card, just a cheque book, and was set up so that it needed any 2 of the 4 signatures on a cheque to pay it.

This was with HSBC. Mind you, I'm going back to the early 90s, so not sure if you could get the same sort of thing now since they seem to be fazing out cheques.

kodokan

PBA

When I lived in a house with prepay meters we just took turns topping them up. No need for splitting money between you or anything complicated like that, just agree on an amount and an order you're going to pay in, and when it's your turn you top up that amount.

You could get a savings account in 4 of your names which needed 2 of you to sign for withdrawals, but you'd have to go in to the bank to get the money out which would probably be more hassle than it's worth.