Tips on Joint Bank Accounts
People are free to open joint bank accounts with any of the many banking institutions found within the United Kingdom.
For instance, you might want to open a joint bank account for the purposes of managing household bills with someone with whom you reside, your spouse, or a civil partner. As such, this article offers tips on how to open a joint bank account in the UK., and It highlights tips on how to open joint accounts, regulations on who can use a joint account, debt responsibility, as well as disagreements between/ among joint account holders and how they are arbitrated. Read on to discover more.
To begin with, you will have to fill in an application form. Depending on the bank you are using, you may be required to visit the banking hall to fill in the application forms. In other cases, you will only be asked to fill in the forms online. Again, some other banks will allow you to provide your details via the phone instead of going online or visiting a physical branch. Note that there are no limits regarding the number of joint accounts one can hold.
Some of the things that you do while applying include provision and proof of identity. This includes details such as date of birth, address, and your full names. Most banks operating in the United Kingdom require that you present two documents to prove your identity. This can be your identity card/passport and some recent utility bill that bears your names. Before your application is reviewed, the bank should tell you about your entitlements as well as limitations. You will be told whether one signatory can withdraw money without the consent of the other. Again, you will be told whether or not each signatory shall take full responsibility for any overdrafts taken from the joint account. Finally, and the most important, you will be told what to do when terminating the joint account.
There is a form called the Mandate that should be signed by people opening a joint bank account. This document makes clear issues concerning signing of checks and withdrawal of money. It is however possible to cancel the Mandate without the agreement of other parties. You do this by amending the terms of the Mandate or by initiating its close. It is also important to remember that your credit rating can affect the type of account that you will be able to open. For more information about banking with a bad credit history please visit http://www.bankaccounts-for-badcredit.com/ .
Responsibility for debts is another aspect that one has to get clear before they open a joint account. If you have an individual bank account with the same bank, the bank may source funds from your account to offset debts accrued by the joint account. Although some banks do this automatically, other banks will seek your consent before they do this. However, the bank cannot take money from the joint account to pay a debt incurred on a personal account unless both parties accept this to happen.
In case disagreements come up, you are free to cancel the Mandate and terminate the joint account. If the mandate is not cancelled in time, one party may withdraw funds from the joint account since the bank will not have any express mandate to refuse to pay them.