Bank Account News

BBA: Trust essential with joint current accounts - 08/11/2007

Excellent! Very Good Good Fair Poor

Why not be the first to rate this article?

People planning opening a joint current account should have the "utmost trust" in their partner, the British Bankers' Association (BBA) advises.

Brian Capron, BBA head of media relations, suggests that joint bank accounts are still very popular with couples, who find them useful for paying bills and to save money, though many still retain a separate account as well.

However, he urges consumers to get bank to outline their rights and responsibilities before committing to a joint bank account, as both people are liable for any borrowing on the account.

Mr Capron explains: "If you open a joint account you have got to have the utmost trust in the person that you open the account with because, regardless of who pays the money in, if it is an account which allows either to sign, either of those people can draw money out and there is nothing to stop them drawing it all out or potentially running up an overdraft."

A recent study by Abbey National found that 93 per cent of people with a joint bank account used it to pay for their household bills, including utilities and mortgage repayments, while 83 per cent used it to pay for shopping and three quarters spent cash from a joint account on home and kitchen appliances.

© Adfero

Back to Index