15 December 2017 : 


 

Read our guide to joint accounts and get the facts you need to be sure they’re right for you (all)

Joint Accounts

Joint accounts are bank accounts held in the name of two or more people. They are popular because they help people simplify their finances, by enabling groups to manage shared deposits and pay for shared expenses, like household bills from a single account.

Compare some of the best UK joint account deals below, offering great interest rates, switching incentives and more, and get the bank account best suited to your circumstances.



     
Interest
AER
Monthly
Fee
Min. Monthly
Funding
Joint
Application
Overdraft
Rate

   


NatWest Reward Logo


Switch Guarantee Logo
0%
AER
£2
per month
£0
per month
Online
 
19.89%
EAR (variable)
  NatWest Reward
FSCS Logo
  • 2% back in Rewards on 7 types of household bills if paid by Direct Debit (including, but not limited to, Council Tax, telephone, water, gas, electricity, TV)
  • On average NatWest customers earn £83 Rewards per year. Based on monthly bills of £345 excluding the monthly £2 fee
  • Earn at least 1% on qualifying purchases at NatWest Reward partners
  • ApplePay enabled payments
  • £2 monthly fee
     NatWest Reward - Full Product Details

  Representative Example: If you use an overdraft limit of £100 a 19.89% EAR (variable) charge will apply   
 




NatWest Select Account Logo


Switch Guarantee Logo
0%
AER
£0
per month
£0
per month
Online
 
19.89%
EAR (variable)
  NatWest Select Account
FSCS Logo
  • 24-hour telephone, online & mobile banking
  • Specialist switching team to transfer your account
  • Emergency cash withdrawal if you lose your card (Min. £25 in credit balance required)
  • ApplePay & contactless payments
     NatWest Select Account - Full Product Details

  Representative Example: If you use an overdraft limit of £100 a 19.89% EAR (variable) charge will apply   
 




First Direct Logo


Switch Guarantee Logo
0%
AER
£0*
per month
£1,000
per month
Online
 
15.90%
EAR (variable)
  First Direct
FSCS Logo
  • £100 Switching incentive + First Direct satisfaction guarantee**
  • Mobile banking on the go with our app for iPhone, Android and iPad
  • Telephone banking with real people answering calls 24/7
  • £250 free of overdraft interest
  • * Pay £1,000 or more into your account each month & First Direct waive the £10 monthly fee
    ** Satisfaction guarantee - if you're not happy First Direct give you £100
     First Direct - Full Product Details

  Representative Example: If you use an overdraft limit of £1,200 the interest rate charged will be 15.9% EAR (variable)   
 




Santander 123 Current Account  Logo


Switch Guarantee Logo
1.5%
AER
£5
per month
£500
per month
Online
 
£1
per day
  Santander 123 Current Account
FSCS Logo
  • 1% cashback on water and council tax bills and the first £1,000 you pay towards your Santander monthly residential mortgage payment
  • 2% cashback on gas and electricity bills and Santander home insurance premiums (policies administered and underwritten by Aviva Insurance Limited)
  • 3% cashback on mobile, home phone, broadband and paid-for TV packages
  • Monthly interest of 1.50% AER/1.49% gross (variable) payable on your entire balance up to £20,000
  • £5 monthly account fee
     Santander 123 Current Account - Full Product Details

  Representative Example: 0% EAR (variable) Arranged Overdraft. Arranged Overdraft Usage Fee of £1 per day. If you are switching to Santander then there will be no Arranged Overdraft Usage Fee for the first 4 months. Assumed Arranged Overdraft credit limit: £1,200. Actual credit limit may differ. Arranged Overdraft Usage Fee depends on the amount of overdraft you are using   
 




Royal Bank of Scotland Select Account Logo


Switch Guarantee Logo
0%
AER
£0
per month
£0
per month
Online
 
19.89%
EAR (variable)
  Royal Bank of Scotland Select Account
FSCS Logo
  • 24-hour telephone, online & mobile banking
  • Specialist switching team to transfer your account
  • Emergency cash withdrawal if you lose your card (Min. £25 in credit balance required)
  • ApplePay & contactless payments
     Royal Bank of Scotland Select Account - Full Product Details

  Representative Example: If you use an overdraft limit of £100 a 19.89% EAR (variable) charge will apply   
 




Santander 123 Lite Current Account  Logo


Switch Guarantee Logo
0%
AER
£1
per month
£500
per month
Online
 
£1
per day
  Santander 123 Lite Current Account
FSCS Logo
  • 1% Cashback on water, council tax and Santander mortgage payments (up to maximum monthly mortgage payments of £1,000)
  • 2% Cashback on gas and electricity bills and Santander home insurance premiums (policies administered and underwritten by Aviva Insurance Limited)
  • 3% Cashback on mobile, home phone, broadband and paid-for TV packages
  • Access to 123 World Offers, including preferential rates and special deals on other Santander products
  • £1 monthly fee
     Santander 123 Lite Current Account - Full Product Details

  Representative Example: 0% EAR (variable) Arranged Overdraft. Arranged Overdraft Usage Fee of £1 per day. If you are switching to Santander then there will be no Arranged Overdraft Usage Fee for the first 4 months. Assumed Arranged Overdraft credit limit: £1,200. Actual credit limit may differ. Arranged Overdraft Usage Fee depends on the amount of overdraft you are using   
 




Nationwide FlexPlus Logo


Switch Guarantee Logo
3%
AER
£13
per month
£0
per month
Online
 
0.50p
per day
  Nationwide FlexPlus
FSCS Logo
  • Earn 3.00% AER in-credit interest for balances up to £2,500
  • Worldwide family mobile phone insurance
  • Commission-free cash withdrawals when abroad
  • ApplePay enabled payments
     Nationwide FlexPlus - Full Product Details

  Representative Example: If you use an arranged overdraft of £1,200 the amount we will charge you is 50p per day (variable)   
 




Santander Everyday Current Account Logo


Switch Guarantee Logo
0%
AER
£0
per month
£0
per month
Online
 
£1
per day
  Santander Everyday Current Account
FSCS Logo
  • 24/7 access to your account using Online, Mobile and Telephone Banking
  • Access nationwide via our branch network
  • Free text and email alerts about your account
  • You could get a 4 month fee-free Arranged Overdraft when you switch to Santander (overdrafts are offered depending on your circumstances)
  • Apple Pay enabled payments
     Santander Everyday Current Account - Full Product Details

  Representative Example: 0% EAR (variable) Arranged Overdraft. Arranged Overdraft Usage Fee of £1 per day. If you are switching to Santander then there will be no Arranged Overdraft Usage Fee for the first 4 months. Assumed Arranged Overdraft credit limit: £1,200. Actual credit limit may differ. Arranged Overdraft Usage Fee depends on the amount of overdraft you are using   
 




NatWest Reward Silver Logo


Switch Guarantee Logo
0%
AER
£12
per month
£0
per month
Online
 
19.89%
EAR (variable)
  NatWest Reward Silver
FSCS Logo
  • 2% back in Rewards on 7 types of household bills if paid by Direct Debit (including, but not limited to, Council Tax, telephone, water, gas, electricity, TV)
  • On average NatWest customers earn £83 per year. Based on monthly bills of £345 excluding the monthly £12 fee
  • Includes many lifestyle benefits such as European multi trip travel insurance, preferential rates on travel money, mobile phone insurance & tastecard membership. Account terms & conditions apply
  • Ticket booking service, receive 25% cashback on tickets for theatre, dance, opera, concerts and more
  • ApplePay enabled payments
  • £12 monthly fee
     NatWest Reward Silver - Full Product Details

  Representative Example: If you use an overdraft limit of £100 a 19.89% EAR (variable) charge will apply   
 




NatWest Reward Platinum Logo


Switch Guarantee Logo
0%
AER
£19
per month
£0
per month
Online
 
19.89%
EAR (variable)
  NatWest Reward Platinum
FSCS Logo
  • 2% back in Rewards on 7 types of household bills if paid by Direct Debit (including, but not limited to, Council Tax, telephone, water, gas, electricity, TV)
  • On average NatWest customers earn £83 per year. Based on monthly bills of £345 excluding the monthly £19 fee
  • Includes many lifestyle benefits such as Worldwide multi trip travel insurance, UK car breakdown cover, mobile phone insurance & tastecard membership. Account terms & conditions apply
  • ApplePay enabled payments
  • £19 monthly fee
     NatWest Reward Platinum - Full Product Details

  Representative Example: If you use an overdraft limit of £100 a 19.89% EAR (variable) charge will apply   
 


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What is a joint bank account?

Couple together in a fieldJoint accounts are simply current accounts which are held in the name of two or more people. Typically people who open joint accounts together are married or co-habiting, but they are not exclusive to people living together. In fact, assuming consent amongst all parties, people are free to open a joint account with whoever they so choose. However, as with all credit-based financial arrangements, joint accounts can affect individuals' actual or perceived financial well-being, so it is wise to fully understand the risks and have a good understanding of the wider situation of an individual before opening an account with them. It may be that a formal association impacts all parties' future financial prospects.

Advantages of joint accounts

Joint accounts make it easier pay to collective expenses together
 
Foster transparency within relationships as each party can see what is being spent
 
Easier to see that both parties are 'paying their way' for shared expenses
 
FSCS rights not affected as protection limit of £85,000 is per account holder, rather than per bank account
 

Disadvantages of joint accounts

Joint accounts link people financially, meaning they are co-scored for future credit applications together. Because of this association, individuals should be careful they are not linked to people with poor credit
 
Joint account holders are liable for all debts incurred; therefore individuals could discover they are fully responsible for not just a share of any debts incurred, but for the full amount - regardless of whether they incurred the debt
 
Most joint accounts, regardless of the actual relationship between the parties, will pass the entire account (and all funds contain therein) to the other account holders absolutely on the death of an account holder. This will happen regardless of what has been specified in a will because joint accounts are subject to the standard rules of survivorship
 

What's needed to open a joint account?

Opening a joint account is slightly different from opening a standard current account, as each account holder needs to fill in their individual section on the application form and provide proof of address (probably for the past 3 years), identity and UK residency status.

Can I open a joint account with someone who has bad credit?

Legally nothing prevents people from opening joint bank accounts with individuals who have had difficulty with debt in the past, but there are good practical reasons why you might not want to do this.

Joint accounts link people financially, so if one individual has had debt or financial difficulties in the past, this would affect the credit rating of the person, or people, with whom they share the account, as they are 'co-scored'.
Indeed it is often the case that although the individual with poorer credit receives a modest boost to their ability to borrow, those with better credit scores will find their credit options and collective ability to borrow reduced. For this reason, it is best practice to check every potential joint account holder's credit record before applying.

What happens if joint account holders fall out?

If a misunderstanding develops with the fellow account holders, the mandate can be cancelled. This will freeze the account so no account holders can withdraw money.
The bank can, however, agree to release the balance once everyone agrees on how the money should be split. If an agreement cannot be reached, the only option may be to let the courts decide. It is also worth noting that the courts look at joint accounts differently. The ruling can depend on your relationship with other fellow account holders and also where you live e.g. England, Wales, Scotland or Northern Ireland.

What happens if my bank or building society fails?

FSCS ProtectionIf your bank or building society goes bust, then like any other account, joint accounts are protected by the Financial Services Compensation Scheme (FSCS).

Through this government backed scheme, each account holder can claim up to £85,000 of money lost in a failed bank or building society.

Click Here to read our guide to the FSCS

Alternatives to joint accounts

Whilst joint accounts often appear to be the natural option for people wanting a shared account, there are alternative products which can be just as good (if not better). Prepaid credit cards often issue holders with an account number and sort code so that they can be used as de facto bank accounts. Although some costs are incurred for the use of these products, they do not offer  account holders a credit line and are therefore a useful alternative to people who do not want to be financially associated with someone with bad credit.
 



Further Reading

You and your joint account - British Bankers' Association

The Pitfalls of a Joint Account - Barrett & Co Solicitors

Joint bank accounts - Citizens Advice (England)

Product Offers
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