Best Online and Traditional Banks for Joint Accounts
Which Banks Are Best for Joint Accounts
Joint bank accounts provide a convenient way to manage joint financial responsibilities, from managing a family household to paying bills in a property shared by a group of friends. There are many different types of joint bank account products on the market and we have reviewed the latest products and selected some top picks to help you to choose the right one to meet your requirements.
How does a joint bank account work?
A joint bank account is very similar to a standard personal bank account, except it is held in multiple names. Some joint bank account products only allow two account holders, while some will allow four or five people to open a joint bank account.
All individuals who are opening the joint bank account must provide the required documents and sign the application form on a joint bank account. All the account holders are able to withdraw and deposit money into the account, set up Direct Debits and each has their own debit card, as well as individual online and mobile banking log-in details.
It is important to understand the potential risks of opening a joint bank account. For example, you will need to trust the other account holder(s) to manage the money in the account in a way you agree with. You should also be aware that a financial link is created between the account holders of a joint account. This means that if the person you open a joint account with has a poor credit history or has future credit issues, this could impact your own ability to get credit in the future.
What to consider when choosing a joint bank account
When you open a shared bank account, you should think about what your main priorities are. For example, you may want to ensure that you get the best savings interest rates, especially if you will be transferring large sums of money into the account. Another priority might be that you will be able to open a savings account online, or that you can easily link PayPal to your bank account.
Other factors to consider are the account fees, overdraft options and whether there is a switch incentive if you want to move bank account from a joint account with another provider. If you want to benefit from the best savings account interest rates, you may decide on a joint fixed deposit account if you are not using the account for day-to-day money management.
If you want to enjoy perks such as travel insurance, gadget insurance and breakdown cover, then a joint packaged account could be the best choice for your needs. Packaged account perks have terms and conditions that you should check to ensure any included insurance provides the cover that you need.
Best for high interest savings
If earning as much interest as possible on the money in your joint account is your main priority, then you will want to look at the joint accounts that offer the best interest rates.
Here are the bank accounts offering the best high interest rates as of 14 July 2024:
Chase current account
Chase is offering 5.1% AER interest when you open their boosted savings account from the banking app. There is also 1% cashback on most debit card spending up to a maximum of £15 per month. The Chase current account does not offer an overdraft but there is no minimum pay-in.
Aldermore 1 year fixed rate savings account
Aldermore offers several products with high interest rates and their 1-year fixed rates savings account currently provides 4.87% AER with a minimum opening balance of £1,000. You may not withdraw money until the maturity date.
Best for premium banking
Premium banking accounts provide perks such as higher interest rates or higher limits on deposits and transfers. If you will be transferring large sums of money between bank accounts, a premium banking account will often provide the best option.
These are some of our top picks for the best premier bank accounts:
Barclays Premier
With the Barclays Premier account, there is no monthly fee, and you can make daily cash withdrawals of up to £2,000. They currently have a £175 switch incentive for sole accounts but not for joint accounts. One of the requirements for qualifying for this account is that an annual gross salary of at least £75,000 per year is paid into the account or the holders must have at least £100,000 in savings with Barclays.
Santander Edge Up
The Santander Edge Up current account provides a 3.5% AER monthly interest rate on balances up to £25,000, plus there is 1% cashback on supermarket purchases and household bills paid by Direct Debit (up to £15 per month). For frequent travellers, another perk is that you won’t be charged when you use your debit card outside of the UK.
Best for packaged accounts
If benefits such as travel insurance, breakdown cover and gadget insurance are important to you, then packaged accounts may be of interest to you. When you are considering packaged accounts, you should always check what the comparable amount would be to separately take out the insurance cover and other perks that are included, to check it is worthwhile paying the monthly account fees.
These are some of the top picks for packaged accounts:
Virgin Money Club M
The Virgin Money Club M provides worldwide family travel insurance, insurance cover for gadgets and phones for all the family and UK and European breakdown cover. The monthly fee for this account is £12.50 with no minimum pay-in.
Nationwide FlexPlus
For a monthly fee of £13, account holders of the Nationwide FlexPlus packaged account benefit from phone cover for all the family, worldwide family travel insurance, and UK and Europe breakdown cover.
Halifax Ultimate Reward
If protecting your home with emergency cover is a priority, the Halifax Ultimate Reward packaged account provides home emergency cover in addition to worldwide family travel insurance and mobile insurance for the account holders. There is a monthly fee of £19 on this account.
Best student bank accounts
For students looking to open a joint account to pay for student accommodation and bills, there are accounts offering 0% interest on large overdrafts and some very useful incentives such as railcards. However, student accounts will usually have to be held in one name, so it would be a case of nominating one person to be trusted as the account holder who will set up Direct Debits for bills, while the other people living in the shared accommodation would pay into the account.
Santander Edge Student
This account offers an interest-free overdraft of £1,500 in the first three years and up to £1,800 in year 4. The account holder would need to use the account as their main current account and at least £500 should be paid into the account every 4 months. The account holder will receive a 4-year railcard which provides savings of 1/3 on rail travel in Great Britain.
NatWest Student account
In addition to an interest-free overdraft of up to £2,000 from year one, this account comes with a free Tastecard for savings on pizza deliveries, dining in at listed restaurants, coffee, and cinema tickets. Unlike the railcard savings that can only be used by the account holder, the Tastecard can be used for a group going out for meals.
FAQs
What is the best joint account for savings rates?
There are numerous joint accounts that offer good savings rates, particularly the fixed rate savings accounts if you are not looking to make withdrawals from your account. Rates change on a regular basis, so it is best to review the current rates before choosing a savings account.
Can I open a joint current account online?
Yes, many joint account providers allow the account holders to make their application online rather than going into a branch. Each account holder will need to upload ID documents and any other documents required by the provider.
Can I open a joint account with someone I’m not married to?
Yes, joint accounts can be opened between friends, partners, flatmates or any other types of situations where people want to manage money jointly.
Is it easy to close a joint account?
To close a joint account, all parties must agree to close the account and any debts such as overdrafts must be settled.
Choosing the right joint account for your needs
These are our current top picks of some of the best joint account options on the market in 2024 but new products are frequently introduced, so it is always recommended to check the latest products.
When you are choosing your joint bank account, make sure that you review all of the terms and conditions to ensure that it is the best account to meet your specific needs and will be suitable for how you will be using your account.
