Posted on December 16, 2019 at 11:37 am by BeeMyMinder
Pros and cons of having a joint bank account
If you’re living with your partner and hoping to save up some money together for an event or a holiday or just deciding to share your expenses equally, it is worth considering opening a joint bank account. There are pros and cons to this and we’re here to tell you all about them!
Pros
Savings
If you’re both looking to save money, you can agree to put a certain amount of your monthly wages into the joint account. We’d suggest putting in the same amount 50/50 or a contribution that is proportionate to the size of your income. this ensures it’s a sum you can both afford!
BeeMyMinder tip: Some banks offer joint accounts with higher interest rates than current accounts, so you could make some profit there as well.
Bills
If you live together and plan to use a joint account to pay your household bills, you can agree to pay half of the bills each on payday. Then, you can set up the bills in both of your names to come out of the same account.
BeeMyMinder tip: If you round your bills up to the nearest £, you may find you have a little more saved at the end of the year too!
Bank account benefits
Whether you’ll use a joint account for savings or bills, it’s likely to have a fair bit of money coming in and going out. There are plenty of banks that offer account benefits for people that pay in (or out) a certain amount a month. Use this comparison site to weigh up the benefits of each bank’s offering.
Cons
The Trust Factor
The disadvantages surrounding a joint bank account are mainly down to trust.
Sharing an account means your partner will have access to your financial information and some of your money. You must be ready to commit to this before opening a joint account. If you have any doubts about trusting your partner with your finances, a joint account is not for you.
What’s mine is yours
It’s also worth remembering that should either of you come into financial difficulties at any point, such as the account going overdrawn or a direct debit bouncing, you will both be held responsible for this.
If your partner is in debt, then you may also risk losing your money in the account, so check there are no debts against either of your names before you commit to sharing an account.
BeeMyMinder tip: before opening a joint account, discuss and plan exactly what the account(and money in it) will be used for, to avoid disagreements further down the line!
Could affect your credit score
Just living or being married to someone does not impact on your credit score but as soon as you open a joint account you will be co-scored. Therefore if one of you has a poor credit history it could affect the others.
BeeMyMinder tip: check your credit scores and make sure they are good before opening a joint account. If it needs improving then this article can give you tips on how to improve it.
How BeeMyMinder can help
Don’t forget that with the BeeMyMinder policy storage system, you can keep track of your household bills, ensuring that every month there is enough money in your joint account to pay for them. Some months may end up being more expensive than others, so using BeeMyMinder means you’ll never miss a payment or renewal date.
