As a couple, it can make complete sense to merge your finances as soon as you start to share regular bills and commitments. How you manage your money is a personal choice so you’ll both have to be on board, but joining your finances together can make budgeting as a couple a whole lot easier.
What is a joint bank account?
Before we run you through the budgeting benefits of opening a joint bank account, we want to make sure you know exactly what one is. A joint bank account is simply an account that two or more people can access, get money paid into, pay bills or withdraw cash. They’re not limited to couples either, as long as you share expenses with someone (like a housemate) you can apply for one.
Budgeting as a couple
Combining your money into one pot with someone that you trust can make budgeting for the day-to-day that little bit more straightforward. You’ll be able to pay all of your regular bills like your rent or mortgage as well as any other household bills from one place, and budget for food and other expenses easily. If there’s any money left over once all of your essential costs have been taken care of, you can both decide on what to do with it – whether that’s saving it, keeping it in case of any unexpected expenses or treating yourselves!
How your joint account works will depend on you as a couple and how comfortable you are with sharing your finances. To gauge this, sit down with your partner and discuss the details of your account beforehand. Think about whether the money will cover your individual bills as well as your joint ones and agree in advance how much money you’re going to pay in each. Taking the time to do this could help prevent arguments later on down the line or make you realise that you’re not quite ready for a joint account just yet.
If you do believe that opening up a joint bank account would be beneficial, then there are a few things that you should consider. The first thing to think about is that with a joint account, you and your partner are “jointly and severable liable” for any debts accumulated on the account. This means that regardless of who runs up the debts, the bank can chase either one of you for the whole amount.
Opening a joint account with someone creates a financial link between you both – so any time someone runs a credit check on either one of you, the other person’s credit history can be brought up. If your partner doesn’t have the best credit history, then this could reflect badly on you – so be transparent about this beforehand.
joint thinkmoney Personal Account
If you’re looking for a joint account that could help you and your partner budget for your shared finances, then why not consider the joint thinkmoney Personal Account? The account will do all of the hard work for you, separating the money that you need for your shared bills from your spending money – so that you know as a couple that the important things are always covered for. The joint thinkmoney Personal Account comes with a monthly management fee of £24.50 – but it protects you from going overdrawn, so there are no unexpected overdraft or returned items charges.