In Depth

The three best joint bank accounts

Whether you are using your account for shared expenses, household bills or savings, here are the best options

If you are thinking about opening a joint account with someone read on to discover what you need to understand before you merge your finances - and which are the best accounts to open.

Opening a joint account with someone is a big financial commitment. Make sure you understand the consequences before you open an account.

When you open a joint account you are linking yourself financially to the other person. This means their actions could have an impact on your credit rating and if one of you goes into the account’s overdraft, you are both responsible for repaying it.

The other account holder is also perfectly entitled to withdraw money out of the account, unless you've got special provisions requiring permission for withdrawals. So in most cases if they decide to clean it out there isn’t a lot you can do to get your money back.

If you are planning to open a joint account with someone then one of these three accounts good well be your best option.

1. Best all-rounder

If you are moving in with someone then TSB’s Classic Plus account is the best all-round option offering a good interest rate and healthy cash rewards.

The account pays you £5 every month that you have two active direct debits set up and an additional £5 monthly cashback if you use your debit card at least 20 times a month until 30 June 2018. So, this could be a good option for grocery and household shopping too.

It also pays three per cent interest on balances up to £1,500 provided you pay in at least £500 a month and sign up for internet paperless banking.

So, maintain a £1,500 balance and meet the cashback terms and you could earn up to £165 a year.

2. Best for big bills

Need an account for all your shared household payments to go out of? Take a look at Santander’s 123 Lite Current Account. It pays cashback on a variety of household bills meaning you could earn enough for a meal out.

The account pays one per cent cashback on water bills, council tax and Santander mortgage payments, then two per cent cashback on gas and electricity bills and Santander home insurance premiums.

The bumper three per cent cashback rate is paid on mobile and home phone bills, broadband and paid-for TV packages.

If you spent £150 on council tax, £50 on water, £100 for gas and electricity and £100 on communications bills each month you would earn £81 cashback a year.

At the moment Santander are also paying an extra five per cent cashback on purchases made using Apple Pay, Samsung Pay or Android pay until 30 September.

The account has a £1 monthly fee and to get the cashback you must pay in at least £500 a month and have two direct debits set up. It doesn’t pay any interest.

3. Best for interest

If you are looking to set up a joint account that will have a healthy balance then Nationwide’s FlexDirect current account is a good place to start. It pays five per cent interest on balances up to £2,500 for the first 12 months, but to get that you must pay in at least £1,000 a month.

It’s fee-free but you should switch after 12 months when the interest rate plummets to one per cent.

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