Joint bank accounts

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[Viney]

Dont do it. Just dont. It will end in tears!

As for the bank account, if its just for the mortgage and bills its simple. I think you can have only 2 peoples names on the joint account. My girlfirend lives in a 5 person shared house and they just pay thier money into the account. Its all based on trust really. The money gets transfered by DD every month, and each person owns a bill and is responsible in making sure that the bill is paid, and there's enough money in the account to pay it. Works fine.

Mrs Tricky and I have a houshold account.
We both have our own "main" accounts and have a standing order to transfer a set amount to the househole account every month.

All the bills and stuff are direct debit and come out automatically. We both pay more than we need too every month so there is always a "float" in case of emergencies or an unexpectedly large bill.

My gf and I have been together five years and lived together for four and a half. Earlier in the year (2006, I keep forgetting we're in 07) we had a bit of financial trouble, and moved accounts quickly.

We got an Alliance and Leicester joint account and it has revolutionised my finances. I now have some savings (not much, but some, which is a first for me), and know my balance at all times. I never go overdrawn, and we've gone from a situation where I didn't check the account and she did every day to the complete opposite.

It's the best thing I've ever done - all we've done is make an agreement that if either of us is going to spend more than £50 (unless it's on fuel or shopping or a bill or present at christmas/birthday) that we tell the other and make sure they approve.

Works brilliantly.

Originally Posted by rubberduckofdeath

I think one of the most important things for us is that we have a fee free and interest free overdraft up to something like £1000 so we don't pay when the mortgage comes out, bills etc if we've not put the cash in. Anyone got any recommendations for such an account?

No such thing as a fee free account they will either put a charge to have a fee free account or will charge you if you go over drawn

H

Originally Posted by rubberduckofdeath

I think one of the most important things for us is that we have a fee free and interest free overdraft up to something like £1000 so we don't pay when the mortgage comes out, bills etc if we've not put the cash in. Anyone got any recommendations for such an account?

I am sure you have considered the implications of the overdraft - i.e. you may find one of you will be sitting on the OD limit constantly and then it may cause aggravation between pals.

Dual signatories will give best security but then a pain in the butt if 2 of you aren't there. If DD's are set up however it shouldnt be to much of an issue though. Which bank?? I would prob opt for the one with the best online facilities - and customer service. HSBC have always been best for me but I havent used them for personal - just work.

I have a joint account with my brothers which was with the same as my personal. One time it was overdrawn (brothers eh ) and the bank pulled money from my personal acc to cover it (pi*sed me off). It maybe worthwhile keeping your personal bank seperate from whatever you do set up with the pals.

Be careful. I assume that you are buying as tenants in common and that your solicitor has advised you to have a separate deed of trust.

These arrangements only ever come to be dusted down when things go sour. Any fool can draft a heads of terms - eg 'Lee pays a third, John pays a third, and Chris pays a third' - but you need to be clear in your trust deed. A third of what? Distasteful as it might be, you must consider what could go wrong and what would happen and what you would want to happen if things go wrong.

Remember that your lender will hold you jointly and severally liable on the mortgage, so if Chris doesn't pay then the others are going to have to. How will you get your money back? What if Chris loses his job? Are you prepared to sub him, and the interest too? And what happens if he wants out?

And be clear about who owns the account, in what shares, who pays into it, how much, what for, and so on. Again, be clear about what happens if it goes sour and who is entitled to what. I know I sound like a Jonah but if your documents are vague or non-existent then expect the worst. I've seen it all too often.

I can't and explicitly don't offer you legal advice as your solicitor will be doing this, and that's what you're paying him/her for, but these are just a few general points you need to bear in mind. **** poor planning produces **** poor performance.

What me and my gf do, is a joint account set up that we each pay the same amount into each month. Mortgage, all bills, food shopping, work that needs doing on the house etc. comes out of this. The money we have left over in our own accounts is 100% ours and it's our business what we do with it. That way, she can't complain when I "spend £200 on another bit of plastic for your motorbike" and I can't complain when she "spent HOW much on a pair of shoes?!"

Works very well. Needless to say we also have all sorts of legal stipulations about who gets what in the event of a breakup too.

Originally Posted by Ceri JC

Works very well. Needless to say we also have all sorts of legal stipulations about who gets what in the event of a breakup too.

Hope the SV is ring-fenced

Originally Posted by Ed

Hope the SV is ring-fenced

Oh yes!