Joint accounts in Ireland

Joint current accounts are a solution worth considering for partners or flatmates that want to take the stress out of money matters and be easily able to control their monthly expenses with joint responsibility.

What is a joint current account?

A joint current account is a bank account that is shared and operated by 2 people, usually a couple or friends that live together. Each partner has a debit card and access to the money held within the joint account. They also have access to internet and/or mobile banking, with the ability to make everyday transactions such as payments and transfers from the account.

A joint account works much the same way as a traditional current account. Direct debits, standing orders and loan payments can also be set up to come out of the account for various expenses shared by the partners.

Who can open a joint current account?

You can open a joint account with anyone you want to share expenses with. While a joint current account is typically used between partners, it can also be used with a flatmate, friend or family member. Whoever you share the account with should be someone that you can trust completely. After all, they’ll have access to the money that they put into the account as well as any money that you put into the account.

What are the benefits of a joint current account over a standard current account?

• Easier to manage household expenses including rent or mortgage payments, utility bills, grocery shopping and even entertainment costs
• A simple way to budget and plan for upcoming bills
• Both parties can see everything that has been spent in the account
• Share bills and other payments without having to transfer money to each other each time

How should you manage a joint account?

The way you set up your joint account and manage it is completely up to you. Here are some options you can consider:

1. Both of you deposit your entire salary into the account and manage all bills expenses out of it
2. You both deposit an agreed-upon amount into the joint account each month and pay for shared bills and expenses from it

Consider the scenarios that we’ve created below to see what might work for you.

Are there any risks to having a joint current account?

• Both of you have access to the account. You need to make sure you trust anyone you share a bank account with. They will have full access to the account and any money you deposit into it.
• Potential for debt. You may find that some banks ask you to set a limit on what can be spent from the account or that both parties need to give consent for applying for an overdraft facility. This is a great way to ensure you don’t get into debt from the account.
• Risks to your credit score. Both joint account holders are responsible for any fees, charges or debts that arise from the account, and your individual credit scores could be affected based on your partners’ financial activity.

How do you compare joint current accounts in Ireland?

With many options available for joint current accounts in Ireland, you can compare your options by considering the following:

• Fees. Maintenance and transaction fees vary across banks, so it’s important to consider how you plan on using your current account and looking for a fee structure that will complement this. Even though a maintenance fee may seem low, the bank may charge more for other day-to-day transactions that will add up over time. It may be worth choosing an account that comes with a maintenance fee but no transaction fees, especially if the monthly fee is less than the overall day-to-day charges across the month. Some joint current accounts waive fees if you lodge a certain amount each month or are able to keep a minimum balance at all times. While this is harder to do as an individual, with two people it is much easier.
• Perks. Depending on your lifestyle and how you use your account, you may benefit from perks associated with your current account, such as deals and discounts for partner businesses or cashback on purchases and bill payments.
• Overdraft facility. An overdraft facility can be worth having in case of unexpected bills or expenses in between paydays. Extra fees are usually charged for this, so make sure you and your partner are clear on the terms in which the overdraft can be used as you are both responsible for the debt.
• Mobile payments. Some banks give you the option of linking your joint current account with Google Pay, Apple Pay or Fitbit Pay.
• Loan interest rates. If you are thinking about taking out a mortgage to buy a home with your partner in the future, look for a joint current account that gives preferential interest rates to its existing customers. This could end up saving you money over the term of your loan compared to what another bank can offer.