Can I Withdraw Money From My Joint Account

A joint bank account is a current account from a bank or a building society for two or more people.

Everyone named on the account has access to it and is entitled to use online banking, hold a debit card, and pay money in or take money out.

Joint accounts are mostly used by married couples, civil partners and couples who live together, although you can open one with a family member, housemates or friends.

This article will cover:

What to consider before opening a joint account
How to open and close a joint account
How to manage shared finances

Managing shared finances

Opening a joint bank account to which you both (or all) contribute can take the stress out of organising your shared expenses – and avoid arguments about who pays what each month.

Whether you are an old hand at cohabitation, or you are new to living with your other half, both you and your partner will probably have to make some compromises to create a happy and harmonious home.

I'm not just talking about sharing the washing up. Few couples today fit the old-fashioned model of a breadwinner and a homemaker.

So you also need to take joint responsibility for shared expenses such as utility bills. This is where a joint bank account can come in useful.

Money may not be the root of all evil. But it is the reason for thousands of relationship breakdowns each year.

So how can you avoid falling into the same trap? Agreeing who will pay what – as well as how you will handle any unexpected expenses – is a good start.

And once you've outlined a plan, opening a joint bank account can be a fuss-free way to stick to it, as long as you both respect the rules.

Find out more: Is a joint savings account a good idea?

Opening a joint account

You can open a joint account online or in a branch, just like with an individual account. The bank will then run a credit ratings check on all applicants.

You can agree with the other person (or people) how much money to pay into the account each month. This cash can then be used to pay for bills and goods.

If, for example, you know you need to pay rent of £1,000 plus a monthly utility bill costing £50, you and your partner could each contribute £525 to the joint account.

Portrait of smiling couple standing in front of wall. — Talk to each other to work out whether a joint account is right for you

Joint account requirements

You will generally need to be at least 18 and have a permanent UK address to open a joint current account with a bank or building society.

Otherwise, all you need are a few documents to prove who you are.

These are:

Proof of address, such as utility bill or bank statement
Proof of identity, such as passport or driver's licence

Top rated current accounts

First Direct

1st Account

Halifax

Reward Current Account

Lloyds Bank

Club Lloyds

Joint account withdrawal rules

Everyone has to sign a mandate when opening a joint account.

This is the formal agreement that details whether each joint account holder has the right to make withdrawals, or whether such transactions must be authorised and regulated by all joint account holders.

You can choose between:

Either to sign: Anyone named on the account can make changes or spend the money in it
Both to sign: Any changes to the account, spending or withdrawals need the permission of both joint current account holders

If you end up having problems with your joint account holder, a good idea is to cancel the mandate as soon as you can and eventually, freeze the account.

Any one of the account holders can do this simply by phoning the bank or making an appointment to do so in a branch.

The bank or building society will notify the other joint account holders.

This freezes the funds in the account so no one – including you – will be able to withdraw money.

The bank will only unlock the joint current bank account once everyone agrees on how to split the money.

If you can't reach an agreement, the nuclear option is to let the courts decide who gets what.

Find out more: Financial guide to divorce

How to choose a joint account

The right account for you will depend on how you plan to use it.

If the account activity will mainly revolve around paying bills, for example, a current account that offers cashback on bill payments is a sensible choice.

If you plan to use the account to cover other shared expenses such as groceries and meals out together, you might prefer a fee-charging packaged account.

These come with extras such as free travel insurance. The benefits will generally cover you both for just one monthly fee.

Top rated premium bank accounts

Co-operative Bank

Everyday Extra

Halifax

Ultimate Reward Current Account

Nationwide

FlexPlus

And if money is tight, an account with a low-cost overdraft will provide added protection in case one of you is late paying your share.

Alternatively, you may select a joint account to take advantage of a high interest rate offer on the balance.

When my parents were looking for a high interest home for their savings, they opened the same bank account three times to benefit from a special offer – in two individual accounts and one joint one.

If you are saving up for a long-term goal such as a property deposit, joint savings accounts may provide a better interest rate than a joint account.

As with all bank accounts, check that the bank is authorised and regulated by the Financial Conduct Authority and covered by the Financial Compensation Services Scheme.

What to consider before opening a joint account

If you and your partner are on the same page financially, a joint account can be a great money management tool.

But if, say, he's a spender and you're a saver, a joint account could cause big problems.

According to Slater and Gordon's research, 43% of UK adults think their partners overspend.

That's one thing when they're spending their own money. But what if your partner runs up an overdraft on your joint account?

Generally speaking, either one of you could withdraw the full balance plus any arranged overdraft without the other's permission – unless you have specified that both signatures are required.

But both account holders are responsible for the whole of the debt.

And if you have a joint account and an individual account with the same provider, it could even transfer money from your personal account to cover the joint account debt.

Using a joint account to manage bills alone can help to reduce the risks involved. However, even then it can have an impact on your credit score.

If your partner has a spotless credit record, it could make it easier for you to borrow money.

But if he or she has a chequered financial past, opening a joint account together could damage your score.

Take a look at our article on the dark side of joint finances to find out more about the risks, and how to protect yourself if a relationship turns sour.

Joint bank accounts for unmarried couples

Joint bank accounts for unmarried couples are no different to those for people who are married or in a civil partnership.

You should have no problem opening a joint current or savings account under both your names, even if you're unmarried and have different surnames.

How to close a joint account

You will generally need to close your joint account if your relationship ends.

If the split is acrimonious, it's probably a good idea to withdraw any money that is yours first and deposit it into a personal account.

You can also protect money in the account by asking the bank to freeze the account (this will cancel any bill payments).

Otherwise, you can simply agree – usually in writing – to divide the money between you, then close the account.

Find out more: How to apply for the marriage tax allowance

Pros of having a joint account

Joint bank accounts offer a transparent and fair way to manage shared expenses.
Paying in a set amount each month makes it easier to stick to a budget and pay bills.
You can both monitor the account and run it together.
A joint savings account can also be useful for shared goals, such as moving house, buying a new car or saving for a holiday.

Cons of having a joint account

Each joint account holder usually has the right to withdraw the full balance – plus any overdraft.
If one joint account holder empties the joint account – plus the overdraft – there is no legal avenue for the other account holder to force them to return it.
If the account goes overdrawn, all account joint holders are liable for the full amount.
Opening a joint bank account with your partner links your credit files, so if they have a poor credit score, yours could suffer too.

For inspiration, read how couple Ryan and Carrie manage a joint bank account despite radically different money mindsets.

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