Compare the best joint bank accounts in the UK 2023

Latest reviews of joint bank accounts

Starling Bank - Current Account - Age 18 and over

Finder rating

★★★★★

Customer rating

★★★★★

Go to siteRead review

£0

Min. opening balance

£0

Account fees

0.05% AER

Interest (AER)

• Account info
• Pros/cons
• Details

No fees overseas.

If you're looking to open a bank account with a friend or partner and you're both happy to bank online/via an app, take a look at the Starling Bank joint account. To qualify, you'll both need a Starling personal account, but it will then only take a matter of minutes to set up your joint account via the app. Once your account is up and running, you'll be able to receive instant payment notifications, so you'll know who is spending what, keep track of your monthly bill payments, pool your rent and bills so you can make your payments from the one account, and set savings 'Goals' for you to achieve together. What's more, should one of you lose or misplace your bank card, you can simply lock your card temporarily until it's found. There are no fees for using your card abroad, making it a good option for joint holidays. However, note there is no overdraft available.

Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 15% EAR variable .

• Free ATM withdrawals and spending anywhere abroad
• Can deposit both cash and cheques for free
• Spending insights and saving tools
• 'Settle up' feature to split joint bills
• Pays interest on current account balance
• Overdrafts and loans available

• Lower ATM withdrawal limit than some other digital challengers
• No group savings feature
• Doesn't have a specific monthly budgeting tool
• No rewards program

Interest rate	0.05% AER
Minimum opening balance	£0
Minimum operating balance	£0.01
Switch service guarantee	Yes
Account fee	£0
Overseas card transactions	£0
Overseas cash withdrawals	£0

HSBC - HSBC Advance Bank Account

Finder rating

★★★★★

Customer rating

★★★★★

Go to siteRead review

£0

Min. opening balance

£0

Account fees

0% AER

Interest (AER)

• Account info
• Pros/cons
• Details

Get access to a 5.00% AER/gross Regular Saver Account.

This account from HSBC could be a good option for those looking to open a joint account thanks to its smart money tools to help you watch your spending and stay on top of your finances. Its handy app lets you check your balance and send money quickly and easily. Plus you can pay in cheques just by scanning them with your phone, get instant notifications when money goes in or out of your account, and budget more easily by seeing how much money you have left once the bills have been paid. You will also get a minimum arranged overdraft offer of £1,000 when you open an account, which could come in useful if an unexpected bill takes you into the red. What's more, account holders can also benefit from discounts at places like Costa and ASOS through the home&Away offers programme. Opening a joint account can easily be completed online.

Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at at 39.9% EAR variable.

• Exclusive worldwide offers and discounts
• Access to competitive savings account
• Fee-free international transfers to other HSBC accounts
• Cash withdrawal limit of £500 per day
• No monthly account fee

• You’ll need to meet set eligibility criteria
• Interest charged on overdraft
• Foreign transaction fee applies if you use your card abroad

Interest rate	0% AER
Minimum opening balance	£0
Minimum operating balance	£0
Switch service guarantee	Yes
Account fee	£0
Overseas card transactions	2.75%
Overseas cash withdrawals	2.75%

Santander - 123 Current Account

Finder rating

★★★★★

Customer rating

★★★★★

Go to siteRead review

£0.01

Min. opening balance

£4 per month

Account fees

2% AER

Interest (AER)

• Account info
• Pros/cons
• Details

Earn cashback every month on selected household bills + 1.5% interest on your balance.

This account from Santander is well worth exploring if you're looking for a joint account to combine your money for joint bills. That's because you'll earn tiered rates of cashback on household bills such as council tax, water, mobile and home phone, broadband and paid-for TV packages, Santander mortgage payments, Santander home and life insurance, plus gas and electricity. What's more, you'll also earn interest on credit balances up to a set amount and be able to earn cashback at selected retailers. An arranged overdraft is also available. Joint account holders will both get their own debit card and both be able to pay into the account if required. Both account holders must update their own details with online banking. Keep in mind that you must meet certain conditions to qualify for the account and there is a monthly fee to pay - though, with two of you, you can split the cost.

Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable . Account fee of £4 per month.

• Interest paid on in-credit balances
• Earn cashback on selected household bills
• Easy to apply for

• Monthly account fee
• High interest rate charged on overdraft
• You’ll need to meet certain criteria to earn interest and cashback

Interest rate	2% AER
Minimum opening balance	£0.01
Minimum operating balance	£0.01
Switch service guarantee	Yes
Account fee	£4 per month
Overseas card transactions	2.95%
Overseas cash withdrawals	2.95%

What’s a joint bank account?

A joint bank account is a current account held by more than one person at the same time. The limit is usually two, although there are some banks that allow more people to open an account together.

There are multiple reasons for opening a joint account, but basically, it can be a good idea when you already share some kind of money commitment with someone else: for example, if you have to pay the rent, the bills or a mortgage together.

A joint bank account works just like a regular current account. Standard features include a debit card, online and app-based banking, direct debits, standing orders and an overdraft facility. There are also joint business bank accounts to help with running a business.

How to open a joint bank account

These days, most banks allow you to apply for a joint current account online. Both of you will need to provide your personal details and to have your identity verified. Depending on the bank you’re applying with and whether you’re also requesting an overdraft, you may also have to go through a credit check.

In some cases, once you’ve completed the application form, you may be asked to pop into a branch and provide some form of proof of identity and proof of address. That’s usually when the bank is unable to verify your identity online.

The functioning of a joint account is governed by a document (generally referred to as a “mandate”) that details who can do what with the account. Both account holders will have to sign it.

Once the account is open, you’ll be able to register for online banking, download the app and fund the account. You should also receive your debit card and PIN within a few days.

From time to time banks offer switching bonuses if you close down your old account and switch to a new one. This also applies to joint accounts. Learn more about the latest switching deals and which banks are offering them.

Joint bank accounts compared

Below, you’ll find information Finder collected from August 2022 about the maximum number of account holders from a number of high street banks.

Risks of a joint bank account

The reason why sharing a current account is such a big commitment is that both people have the same right to access the money in it. As a consequence, once you fund the account, you’re relinquishing control over your money and sharing it with another person. Doing this entails two sets of risks:

• The other person may not stick to their end of the agreement and spend the money for themselves. You really need to trust the person you’re opening a joint account with. They’ll be able to spend the money how they wish; if they used the money for something you hadn’t agreed on, you wouldn’t be able to get it back. Things get even trickier if your account has an overdraft facility because both account holders are liable for the debt, even if the money was spent by one of them without the other person’s consent.
• Your credit score could be impacted. A joint account creates a financial association between two people, so if the other person’s credit score dramatically worsens, yours could take a hit too. You can check your credit score here.

For these reasons, you should only open a joint account with someone who you trust completely and with whom you share a similar money management style. It’s also a good idea to have a conversation at the very beginning on how much you’re going to pay into the account and what you’re going to use the money for.

What to do in a dispute with another account holder

If things go wrong and you have a disagreement with your other account holder(s), then the first step you may want to consider is to cancel the account’s “mandate”, the document that details who can do what with the account. By doing this you freeze the account, which means that none of the account holders (including you) can withdraw the money.

This should give you time and space to resolve the dispute. Your bank or building society will only unlock the account once you convince it that you have agreed on how to split the money.

Sadly, if you can’t come to an agreement about how to split the money in the account, your only remaining option is to take legal action through the courts, which is likely to be expensive and messy.

How does income tax work with a joint account?

The introduction of the Personal Savings Allowance (PSA) in April 2016 means that basic rate taxpayers can earn £1,000 in savings interest per year without paying tax. Higher rate taxpayers can earn £500 in savings interest per year before paying tax, while additional rate taxpayers do not get a PSA.

The PSA covers interest earned in bank accounts, savings accounts, and bonds. With joint accounts, the interest is usually split equally between both account holders and goes towards each account holder’s respective allowance.

How to choose a joint bank account

To help you find the best joint bank account, you’ll need to work out what’s most important to you. For example, if you are planning to use your account to pay household bills, you might want to look for one that pays cashback on those bills. Or you might want an account that pays interest on your balance.

You will also need to consider whether you’re likely to need an overdraft. If so, you’ll want an account that charges a low rate of interest or offers an interest-free overdraft buffer.

If a few of you are planning to open a joint account, check the maximum number of account holders permitted – this is usually between two and four people. You might also want to check whether all account holders need to authorise transactions, or whether just one of you can.

Joint bank accounts and ‘mental incapacity’

If one account holder loses mental capacity, providers in England and Wales can choose to temporarily freeze a joint account. This would involve blocking debit cards, withdrawals, online banking and direct debits.

One way around this is to appoint a power of attorney in advance, which allows someone else to make decisions on your behalf should you lose your mental capacity. If you lose your mental capacity before being able to do this, a deputy must be appointed by the Court of Protection. This can take several months and it can be expensive.

In Scotland, banks must allow the other account holders to continue to use the account under the Incapacity Scotland Act, so long as it was set up on an either-to-sign basis.

In Northern Ireland the process will vary depending on the provider.

How to close a joint bank account

What happens if you break up as a couple, or if you move out and don’t need an account with your flatmate anymore? Well, as long as you both agree on this, there’s nothing to worry about. You can split the money left in the account, move it back to your individual current accounts and then close the joint account.

In order to do so, you’ll usually need to visit a branch together and bring your debit card and proof of identity.

If you disagree on how to split the money, you can get in touch with the bank to cancel the mandate. The bank will then freeze the account until all the parties involved reach an agreement.

Pros and cons

The bottom line

A joint bank account is a good idea if you need your funds or savings to co-exist with someone else. So long as you find the right bank, trust the other person’s financial commitments, set out some ground rules and are aware of the potential credit score implications, it should be smooth sailing.

Frequently asked questions

• Are deposits on joint bank accounts protected?

  They usually are, as long as you’re dealing with a fully licensed bank (it’s worth double-checking). The Financial Services Compensation Scheme protects deposits on joint accounts up to £170,000 (£85,000 per person).

• Who owns the money in a joint bank account?

  Both the account holders do. That’s why you need to think carefully before opening one.

• Can you have a joint bank account if you are not married?

  Yes, you can open a joint account with your partner even if you aren’t married. You can even open one with a friend if you like.

• How do I remove a joint holder from the account?

  You will usually need to put your request in writing (some providers have a form you can fill out) and all account holders must sign the request. In some cases, you may also need to provide ID.

• Does a joint account come with any financial protection?

  A joint bank account comes with the same protection as any other bank account. Provided the account is with an authorised UK bank or building society, your money will be protected by the Financial Services Compensation Scheme (FSCS). This covers up to £170,000 for joint accounts (£85,000 per person), in the event your bank or building society goes bust.

• What happens to a joint bank account when someone dies?

  When one account holder dies, the money in the account usually passes automatically to the surviving account holder. This means they will still be able to access the funds without the need for probate. The bank may ask for the death certificate to be able to transfer the money to the surviving account holder.

  In Scotland, the deceased person’s share of funds won’t automatically pass on to the surviving account holder, but the bank may agree to let them continue to operate the account.