Joint bank accounts

No, it isn’t illegal to have two current accounts. You can open as many current accounts as you like – these could also be with different providers.

Read our guide to multiple bank accounts.

There’s nothing stopping you from having your own separate personal bank account, as well as a joint account with another person.

A joint account is useful for those with shared financial responsibilities, but you may want to keep your other earnings separate, for whatever reason. You can set up a personal account with the same account provider or choose another bank. 

It’s important to know that, if you have separate joint and personal accounts with the same bank, the bank can transfer money from the single account to the joint account to cover any outstanding debts. However, it can’t move money from your joint account into a single account without the consent of both joint account holders.

Yes, each account holder will receive their own debit card. Some banks may issue identical cards with the same 16-digit number and CVV number (the three-digit security number on the back of the card), while others issue cards with different CVV and 16-digit number to allow you to keep a close eye on individual transactions. 

Some people use a joint account but don’t have debit cards – they simply use the account to set up direct debits and standing orders to pay off shared expenses.

You can open a joint bank account online, although not every bank offers this, so you might need to pop into a branch and set up the account in person. Once your account is up and running, you should have access to online banking and other digital features.

Yes, you can normally add an extra account holder to your current account to turn it into a joint account. You may be able to do this online, or you may need to go into a branch in person. 

However, students and young people are an exception. Banks typically won’t let you turn your student account into a joint account or add anyone under 18 to your current account.  

If you want to share an account with your student housemates, you’ll normally have to open a new joint account together.

So long as you have the permission of all account holders, you should be able to switch your joint account to another bank. When you apply, tell your new bank you’d like to switch and once you’ve given them your current account details, they’ll handle the switch for you. It usually takes seven working days and is covered by the Current Account Switch Guarantee.

You should be able to access your joint account through your provider’s online banking or mobile banking app on different phones. This will allow both of you to access and manage your account online and on the go. 

Yes, you don’t need to be married or in a relationship to open a joint account. You can open a joint bank account with a housemate, and some providers will allow you to open an account with up to four people.

If your relationship with the other joint account holder(s) breaks down and you decide to separate, it’s important to cancel the joint account mandate as soon as possible.

This essentially freezes the account so no one can run off with all the money – although you can still make deposits. You’ll need to decide how you split what’s left in the account. If you can’t, then the courts will decide for you.

Unless you both agree to close it, your joint account will remain active. However, if you don’t close the joint account when you split up, you’ll still be financially tied to your ex.

This might be convenient if you have continued shared responsibilities, such as children. But it does mean that their credit rating will continue to affect your own and it could have an impact on your future applications for credit.

If you split up and both agree to close the account once done, you should contact the credit reference agencies and ask for a letter of disassociation. That way, your former partner’s credit rating can no longer affect yours in the future.

MoneyHelper has some useful advice on sorting out your finances after a separation.

Typically, you’ll need the agreement of all joint account holders to remove someone from a joint account, although it depends on your bank and your joint account mandate. You may have to go into a branch to do this or you might be able to submit a written or online request.

If the other account holder refuses to give their authorisation, you can freeze the joint account to prevent them from withdrawing any money while you resolve the issue. Be aware, though, that freezing the account may also stop payments going out. If this is the case, make sure you figure out alternative arrangements for important bills and payments. 

If one of the account holders dies, what happens to the remaining funds will depend on the terms of the account and – potentially – what’s detailed in that person’s will. Check your account details to ensure you understand this and put relevant provisions in place. Engaging with a solicitor that specialises in this area could help. 

To close your joint bank account, both parties must agree. You’ll need to:  

• Pay back any outstanding overdraft debt 

• Settle any regular payments on the account 

• Cancel direct debits and standing orders or move them to another account. 

If there’s a dispute between you and the other person, you should cancel the joint account mandate immediately. This will freeze the account so neither of you can use it until the dispute’s been settled.    

You’ll then need to contact the bank and let them know you want to close your joint account. In most cases, they’ll want written consent from both of you before going ahead with the closure. 

There are couple of ways to use a joint account to your advantage. You could:  

• Choose an account that pays a good interest rate on your balance

• Set up a cashback current account and get a percentage of your utility bills back

• Switch to a different provider or account type and earn a switching bonus. 

Setting up a joint savings account is a great idea if you’re looking to make a big purchase together, such as a house or car. It means you can work towards your goal together, with both of you able to deposit funds and contribute. You should have all the benefits of a single savings account, but simply with two (or even more) people. 

However, you can’t open a joint ISA. The ‘I’ stands for ‘individual’, so there can only be one account holder.