A joint account is a bank account is a type of bank account that is shared by two or more individuals. Any individual who is a member of the said joint bank account can withdraw money from the account and deposit to it. Usually, joint accounts are shared between close relatives, married couples or business partners. In this article, you will get to know how to open a joint bank account in the UK and the the European Economic Area (EEA).
What is a Joint Bank Account?
A joint account is a bank account that has been opened by two or more individuals or entities. Joint accounts are commonly opened by close relatives or by business partners, but it can be used in other circumstances, such as by a club committee.
Why Open a Joint Bank Account?
Generally, a joint bank account works similarly to a regular bank account. One of the main reasons for having a joint bank account is when you share financial commitment with someone else. Sometimes a temporary joint account is opened by two parties entering into a transaction where one party needs some form of security. However, European banks are not very keen on offering temporary joint accounts. There are specialized parties or companies taking care of such accounts as trustees.
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How to Open a Joint Bank Account
It is very easy to open a joint bank account with most financial institutions. Can I open a joint bank account online? You can do it online or by physically visiting the bank branch. The potential joint bank account holders need to provide necessary documents based on the bank’s requirements. A joint account is controlled by a document called a mandate (authorization). The document stipulates the power and privileges of the account holders. It must be signed by each account holder.
Advantages of a Joint Bank Account
Many advantages govern why people will want to open a joint EEA bank account in the UK. Some of them are:
- A joint bank account is ideal for saving or budgeting by withdrawing funds from your personal account into the joint account.
- Account holders can see all transaction details and share the same right of access. This can keep spending habits in check.
- It’s a convenient banking feature for splitting bills or any other recurring payments.
- A joint account promotes a sense of security and trust for business partners
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Disadvantages of a Joint Bank Account
Though joint bank account shave its juicy sides, it also has a bitter side which are the disadvantages that can be seen below:
- The money in the account isn't only attributed to you and can be accessed by your joint partner.
- If your joint account has an overdraft facility, you are both liable for the debt, even if the money was spent without your consent.
- Some people are uncertain in business and so, your partner that controls the joint account with you can be untrustworthy and can easily flee with the money in the account.
- If your joint account holder’s credit score turns negative, you might be affected in the same occasion.
That said, Open a joint account with someone who you know very well and is trustworthy. Make sure that you have a lot in common when it comes to financial management.
Things to Consider Before Opening a Joint Account in EEA and the UK
Before opening a joint bank account, consider checking out the below aspects;
- How the joint account holders and the bank will deal with overdrafts .
- If permission is needed for for a single account holder to withdraw funds from the joint account.
- How to handle disputes related to the joint bank account.
- The closure of the joint bank account.
A few banks will allow you to decide who can make withdrawals from the joint bank account. Transaction will be authorized by nominated joint account holders which is ideal for the security of the money but the nominated person should be trustworthy when it comes to financial management.
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Joint Bank Account in the EEA
The European Economic Area (EEA), was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association.
The banking sector in the EEA is highly developed. Therefore, you may wish to open a joint bank account in EEA. Opening a joint bank account in EEA is not much different from opening an ordinary account. However, each bank has its own rules so you need to check with your bank of choice. Usually, the most common documents required are ID, proof of residence such as utility bills or tenancy agreement and a signed mandate (authority).
Remember all EEA banks have to comply with anti-money laundering laws so documents such as proof of income may be needed.
EU and EEA countries are under the Single Euro Payment System (SEPA). SEPA is a payment system that makes it easy for banks to transfer money from one European country to another.
CHECKOUT: List of Countries in SEPA Zone
Best Banks Offering a Joint Account in EEA
Just as stated above, most banks in EEA have a joint account facility for its customers. Some of the best banks offering a joint account in EEA are:
1. N26 Bank Joint Account
N26 is one of the most convenient virtual banks in Europe and the US because everything can be done online without having to visit a bank and sign many papers to open N26 joint bank account. N26 shared account is a sub-account feature called "spaces" that allows up to 10 people to manage their funds collectively.
N26 bank is available in many European and American countries such as: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland. N26 USA was launched in 2019.
However, N26 is no longer available in the UK since UK left the EU.
2. Bunq Joint Account
Bunq is a well known virtual bank account provider that is active in the EEA. You can open Bunq +1, a Bunq joint account at 2,99 EUR a month. No official paper works are required from them to open a Bunq joint account.
Bunq bank Germany
On April 22, 2021, bunq became is the first online bank outside of Germany to offer German IBANs. For now, bunq IBAN for German account holders is available for new account holders with Personal accounts.
Bunq is also available in many European countries such as: Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Iceland, Latvia, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden.
3. Revolut Joint Bank Account
Revolut is a UK-based online banking solution. Revolut joint account is a shared account feature called "Group Vault". Joint Revolut account is basically a feature that allows bank holders to reach a common financial goal together.
The bank currently supports legal residents in Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
Joint Bank Account UK
Below are the things you will need to open a Joint bank account in the UK
- ID for each applicants, which may be a passport or driving license.
- Proof of address for each applicant’s proof of address such as a utility bill or a bank statement.
- Some bank will require you to first open a regular bank account.
Best Banks With Joint Bank Account in the UK
We find many banks that allow you to open a joint bank account online in the UK. Below are some of the best banks to open your joint bank account online in the UK.
1. Monese Joint Account
Monese introduced a joint bank account in the year 2019. Monese is a digital financial service provider in the UK. The bank provides instant joint account and money transfer services in the UK.
The Monese joint account provides free transfers between euro and sterling accounts and free international transfers. The joint account is integrated with Apple Pay and Google Pay. Monese joint bank account holders have to be European Economic Area (EEA) nationals and already have a Monese personal account.
2. Monzo Bank Joint Account
Monzo offers a virtual joint bank account that serves the United Kingdom. You will both need a regular Monzo account first before opening Monzo joint account. Thereafter, you can take a few minutes to open your joint bank account. Since you will already have a regular account with the bank, no new ID checks are needed. You will just have to go to the settings on your account tab to get started.
Monzo allows your to switch an existing joint account in another bank over to Monzo in a few steps using the Current Account Switch Service.
3. Starling Bank Joint Account
It is easy to open a Starling joint bank account if and only if you both wanting to open the account already have a regular account. Opening a Starling joint bank account can be done via their mobile app and you will be able to instantly add money to your joint bank account, spend and use the app’s features to keep track of the account.
How to Close Joint Bank Account
Both individuals holding the joint bank account will be required to sign the account closure form. You will need to pay off any overdraft as well as communicate to the bank on the status and steps to be taken regarding standing orders or direct debits.
What Happens If Account Holder Dies
If ever a joint bank account holder dies, the money in the joint account automatically passes to the surviving account holder. However, under Scottish law, surviving account holder will continue to have access to the account but the share of the account holder who passed on will not automatically be available to the surviving account holder.
Final Thoughts on How to Open a Joint Bank Account Online in the UK and EEA
From what we shared above, you can say it is possible to open a joint bank account with most banks in EEA and the UK. With a joint account, money and funds management with your spouse, roommate, family member or business partner will be made even easier. However, there are some disadvantages you may face with such an account. That is why we recommend you to check the terms and condition of the bank before opening a joint bank account with any one.
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Reference:
https://satoshifire.com/joint-account