My husband and I share a house and a child but we refuse to have a joint bank account

Banking these days, after all, is efficient. I can transfer money to his account with just my finger print. There’s no queuing up in a bank or paying cheques in. Part of the problem with opening a joint account is that it requires more admin; phone calls, six months of bank statements (how do I get those?) and, well, to be honest, we just can’t really be bothered. I suspect, one day, we’ll end up getting one for the sake of the financial security but until then, I’ll keep tabs on my account and he, his. 

Philip Stubbins, Managing Director of online comparison website Money Expert, outlines the advantages and disadvantages of a joint bank account.

The Advantages of a Joint Account for Couples 

Joint bills and outgoings – If you’re a couple and you live together, the chances are you’ll jointly be responsible for any monthly bills and outgoings. Having a joint bank account makes paying bills much easier, helping you both manage your bills effectively and conveniently as all outgoings are coming out of one account.  A joint account also helps avoid disputes such as who pays for what and so long as you both pay enough in on a regular basis, you can be certain that the money you need is there when you need it.

More transparency with spending – A joint account allows couples to keep track of their spending together, making them both accountable for any outgoings. As a couple, being more accountable for your own spending could help encourage you to save more and even build a more trusting relationship with your partner when it comes to your finances. 

Greater protection – Every individual in the UK has Financial Services Compensation Scheme (FSCS) protection up to £85,000 across each bank they hold an account with, which will compensate them in the event of the bank or building society going under. Couples who sign up to a joint account therefore can get up to £170,000 protection from the FSCS, provided they don’t have a separate account with the same bank, giving them greater assurance that their money is safe and secure. 

Easy access in the event of death – If the unthinkable happens and someone in a couple dies, the other account holder will have instant access to the funds available in the joint account, even if they aren’t married. This prevents the requirement for a Grant of Probate to access any money within the account (usually needed to obtain funds in a standalone bank account if a partner dies). 

Save together – A joint account is a great way for couples to save for a shared financial goal, such as buying a house or a holiday. It also makes saving a lot easier as you can both view your money in one place, helping you to build a better financial relationship with money which could even help you reach your target amount even quicker. 

Disadvantages of a Joint Account for Couples 

Bad credit rating – If one half of a couple has a poor credit rating, it could have a negative effect on the other person’s score, which could lead to issues with getting financial products such as loans and credit cards in the future. To avoid this, make sure you have a conversation with your partner before you commit to opening a joint bank account together to ensure that this is the right decision for you and won’t affect your financial situation in the long run.