Pros and cons of a joint bank account – Millennial Money
In this week's millennial money episode, Damien and I discuss the pros and cons of having a joint bank account.
Pros of having a joint bank account
- Easier way to pay joint bills
- Helps to manage money as it is from one place
- Builds trust
- If one joint account member dies the other person has immediate access to the money without going through probate which is easier if you are married or have a family together
- FSCS protected up to £170,000 (£85,000 per person) *
*There are some nuances which you will need to check with your bank account - it applies per banking license e.g HSBC and First Direct are under the same license.
Cons of having a joint bank account
- Need to trust the person because the person has access to the money and can take it out of the account without your permission
- Both responsible for any overdraft charges
- Have to be honest about what you're spending
- You are financially linked with someone if you get a joint account with them - if they have a poor credit rating, it will also negatively affect you (Watch how to check your credit score here and how to improve your credit score here)
- Can be messy if you break up or fall out with the person you are sharing a joint account with
- Need to be on the same wavelength when it comes to assessing money goals
If you have any particular burning questions or topics that you would like to be discussed, email firstname.lastname@example.org.
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