Advice For Setting Up A Joint Account
If you are getting married or have been with a partner for a long time, you may want to consider setting up a joint account. In this article, we are going to look at what you should be aware of and to see if this is right for you, and what would be the best option for you and your partner.
As well as being able to avoid continually paying each other back, having a joint account makes it easier to track household finances. This makes it easier to pay bills, rent and keep an eye on expenditure every month.
The account is an effective way of maintaining balance, because if you set aside an agreed combined amount every month, it avoids conflict about who pays what, and it means each partner pays an equal amount. It is also important to remind people that you can have a joint account and still have your own separate savings.
It can also be useful if one partner has a bad credit rating, as you may be able to get a joint account elsewhere.
Some people may be uncomfortable with a partner knowing how much they earn, and there are risks with sharing the amount of money between two people. A lot of it depends on trust, and it is vital that each partner is responsible with their share of the money. For example, if one partner becomes overdrawn, then both parties in the account are considered responsible.
There are two ways to do this- you can add a partner to an account you already have, or create a new one. With an already established account, there is the benefit that it is easier to do, as there is something that is already in place. In the latter case, it works pretty much in the same way as establishing something for a single person, in that you need ID and documentation as requested by the provider.
In each case, the provider will ask you to sign a mandate, detailing how the account will be managed. For example, you may wish both partners to co-sign cheques, or alternatively sign them in one name.
As with any service, it is important to be prepared. Get a credit report, so that any mistakes can be corrected. Get reviews and compare the different options available as this will help you to get the best possible deal.
Talk to us
One of the best ways to ensure you get the right option for you and your partner is to discuss what is available to you with a financial expert. The ethos of Larcomes Financial Services has always been “big enough to specialise, small enough to care.”
This means we have the resources to help you, but also the people who can guide you and give you a level of customer service you should expect and deserve. For more information, please contact us today and we will be happy to discuss this with you in more detail.