A joint account is a bank account that is shared by two or more people. This type of account is often used by couples, families, or business partners. With a joint account, all account holders have equal access to the funds in the account. This means that any of the account holders can make deposits, withdrawals, and transfers. In this article, we will show you how to open a joint bank account in the UK.
Types of Joint Bank Account
There are three main types of joint accounts in the UK:
- Joint Current Account: A joint current account in the UK is a shared bank account opened by two or more individuals, typically for partners, spouses, family members, or housemates.
- Joint Savings Account: A joint savings account in the UK is a shared account that allows two or more individuals to pool their savings together.
- Joint Business Account: A joint business account in the UK is a shared bank account that is opened by two or more business partners or directors of a company.
There are two primary types of joint account ownership: Joint Tenants with Right of Survivorship (JTWROS) and Tenants in Common (TIC). Under JTWROS, if one account holder passes away, the remaining account holder(s) automatically inherit the deceased’s share of the funds in the account. On the other hand, with TIC, if one account holder passes away, their share of the funds in the account will be distributed to their estate rather than the other account holder(s).
Why Open a Joint Bank Account?
In principle, a joint bank account works like a regular bank account. One of the main reasons for having a joint bank account is when you share financial commitment with another person/s. Sometimes a temporary joint account is opened by two parties entering into a transaction where one party needs some form of security.
Advantages of a Joint Bank Account
There are several advantages that would make two or more people open a UK joint bank account. Some of them are:
- A joint bank account is ideal for saving or budgeting by withdrawing funds from your personal account into the joint account.
- Account holders can see all transaction details and share the same right of access. This can keep spending habits in check.
- It’s a convenient banking feature for splitting bills or any other recurring payments.
- A joint account promotes a sense of security and trust for business partners.
Disadvantages of a Joint Bank Account
By sharing your bank account with another person/s, you face the following disadvantages:
- You do not have full control of the money in the account.
- If your joint account has an overdraft facility, you are both liable for the debt, even if the money was spent without your consent.
- The person you are opening the account with may end up being untrustworthy. You may end up losing your money.
- Upon opening a joint bank account with someone, your credit histories will become interconnected.
Things to Consider Before Opening a Joint Account
When opening a joint bank account, you will need to consider the following issues:
- How the joint account holders and the bank will deal with overdrafts.
- If permission is needed for a single account holder to withdraw funds from the joint account.
- How to handle disputes related to the joint bank account.
- How to close the joint bank account.
Banks With Joint Bank Account in the UK
There are many banks in the UK that offer a joint account service. Here are some of the banks you can choose to open an online joint bank account in the UK.
Monese Joint Bank Account
Monese introduced a joint bank account in 2019. Monese is a UK online that provides instant joint account for people who already have a Monese personal account. One disadvantage of the joint account is that there’s no overdraft, meaning you can’t spend more money than you add to your joint account.
Monese joint account offers the following features:
- Budgeting tools and alerts: Get a clear overview of your spending and savings with budgeting tools and transaction alerts.
- Up to 10 pots for joint accounts: Easily put money away for different goals, such as a vacation, home expenses, or a rainy day fund.
- Round up payments: Send spare money to your pot with the automatic round-up feature.
- Money transfers: Send and receive money from friends and family, both locally and internationally, through Monese app.
- Easy to open. You can open a UK joint bank account without proof of address, credit history, or income.
Revolut Joint Account
Revolut is a financial technology company that provides various financial products in the UK, including joint accounts.
With Revolut joint account, you enjoy the following benefits:
- Two debit cards: Both account holders can have their own Revolut card, which can be used for anything from groceries and daily coffee to rent and bills.
- Smart budgeting and analytics tools: Revolut’s app provides you with smart budgeting and analytics tools to help you track your spending and save money.
- Subscription management: The joint account also allows you to manage your subscriptions in one place. This makes it easy to cancel subscriptions that are no longer needed or to track how much money is being spent on subscriptions each month.
- Trading, savings, and donations: Revolut also offers features for trading, savings, and donations. This allows you to invest their money, save for the future, or donate to charities.
- Weekly financial progress: It provides you with a weekly financial progress report. This report shows how much money has been spent, and saved in the past week.
Monzo Joint Bank Account
Monzo offers an online joint bank account that serves the United Kingdom. You will both need a regular Monzo account first before opening Monzo joint account. Thereafter, you can take a few minutes to open your joint bank account. Since you will already have a regular account with the bank, no new ID checks are needed. You will just have to go to the settings on your account tab to get started.
It’s important to note that Monzo does not offer overdrafts for joint accounts. This means that you will not be able to borrow money from Monzo if you run out of funds.
Here are the features of Monzo joint accounts:
- Switch your existing joint account: You can switch your existing joint account from another bank to Monzo. This means that you can keep your existing direct debits and standing orders, and you will not have to pay any fees for switching.
- Track your spending: Monzo joint accounts make it easy to track your spending. In your feed, you will see who’s made each transaction, so it’s easy to see where your money is going.
- New joint account card: Monzo joint accounts come with a new joint account card. This card has a different design, so it’s easy to tell them apart from other Monzo cards.
Starling Bank Joint Account
If both of you have got a personal account with Starling bank, you can open a Starling joint bank account using the bank’s apps then you will instantly be able to add money to your joint bank account, spend and use the app’s features to keep track of the account.
As of the writing of this Starling Bank joint bank account review, arranged overdraft facilities are not yet available for joint accounts.
Starling joint account offers the following features:
- Manage bills: Set up Bills Manager to automatically set aside money for your bills and pay them on time.
- Save for shared goals: Save for shared goals, such as a vacation or a new home, with your partner or family member.
- Split expenses: Easily split expenses, such as the dinner tab or the rent, with your joint account holder.
- Manage kids’ money: Use Starling Kite, a debit card and app for kids, to help your children manage their money.
- Switch accounts: Easily switch your joint account from another bank to Starling.
How to a Close Joint Bank Account
To close a joint bank account in the UK, you need to follow a few steps. First, ensure that all account holders agree to close the account. Inform the bank of your intention to close the joint account and discuss how to distribute the funds. Cancel any linked payments like direct debits or standing orders. Finally, request written confirmation from the bank to confirm the closure of the joint account. Remember that each bank may have slightly different procedures.
What Happens If Joint Account Holder Dies?
What happens to a joint account in case of death of one account holder depends on the account type. In a joint tenancy with right of survivorship account, the surviving holder(s) inherit the deceased’s share without probate. In a tenant in common account, the deceased’s share goes to their estate, possibly requiring probate. Contact your bank if unsure about your account type.
Key Takeaways for Opening a Joint Bank Account Online in the UK
The process of opening an online joint bank account in the UK is relatively simple, yet demands thoughtful deliberation. It is important to select the right bank, understand your financial requirements and needs, and have open communication with your partner to establish shared expectations. Several joint bank account providers, such as Starling Bank, Monese Bank, and Monzo Bank, offer their services to facilitate a joint banking experience for couples or business partners.
Joint Bank Account UK FAQs
Can I open a joint bank account online in the UK?
How do I open a joint bank account online in the UK?
To open a joint bank account online in the UK, you need to choose a bank, apply together with the necessary information, and wait for approval. Each account holder will receive account details upon approval. Find out what is needed to open a joint bank account.
How do I close a joint bank account in UK?
To close a joint bank account, you typically need the cooperation of all account holders. Since it's a joint account, all parties involved should be part of the process.
Can one person close a joint account in UK?
Yes, one person can close a joint account in the UK. However, the bank may require the consent of the other account holder in writing. This is because both account holders are equally responsible for the account and its debts. If the other account holder does not agree to close the account, you may need to go through a legal process to close it.