Mistrust and selfishness act as bar to joint accounts

Being territorial over money, being secretive over purchases, and not trusting a partner with joint finances are common reasons why people in serious relationships will not open a joint current account, new research reveals.

While 61% of Brits have had a joint account in a serious relationship, with most having one because it is convenient for bills and the ease of keeping track of money, the view that ‘my money is MY money’ and not wanting the hassle of opening a new account are cited as the main reason for not opening a joint account.

According to the research from the Norwich & Peterborough Building Society the vast majority of people who have had a joint account seem to have had a positive experience, but there is a reluctance to open a joint account with a partner because one person does not want to share their money, is concerned that their loved one will spend more than they are entitled to, or it is too much hassle to set up in the first place.

‘There are many good reasons why a joint account works well in a relationship. Those who have their own individual accounts plus a joint account for household bills do so because it is the easiest way of keeping track of their household finances,’ said Ewan Edwards, head of current accounts at N&P.

‘You can separate your money so you can keep what is yours separate, but also know that all of your bills are covered, and you can keep your purchases from your individual account secret too, if that is important to you,’ he explained.

‘There is also a myth that opening another account is too much hassle, which must be dispelled. An online application can be completed in as little as 15 minutes, with a transfer of Direct Debits and standing orders from individual accounts to the joint account happening virtually seamlessly,’ he added.

The research also found that 46% found a joint account was good to use as a bill paying account with 39% saying that it made it easy to keep track of finances. But according to men, 10% of women have spent more than they were supposed to from a joint account, but only 3% of women admit to spending more.

Of those Brits who have never had a joint account 40% are territorial over their money and have the view ‘my money is MY money’ and aren’t prepared to share while 25% believe it is too much hassle to open another account and 11% think it is too much of a financial commitment.

Women are twice as likely to be reluctant to open a joint account because they are fearful of taking on a partner’s debt an one in ten women don’t want one as they don’t want their partner to know what they are spending their money on.

Norwich is the city with the highest proportion of couples with a joint account, seven in 10, while Leeds and Birmingham joint lowest with three in 10.

Some 24% of Londoners who haven’t had a joint account have never been in a serious enough relationship to warrant one and 14% of people in London don’t trust their partner enough to give them access to their money.

Newcastle is the most secretive city, with one in five Geordies not wanting their partner to know what they are spending their money on. Liverpool is the least secretive with only 4% of people with the same concern.

Glaswegians are least likely to have had a joint account in a serious relationship with just 39% doing so but their Edinburgh neighbours are one of the most accepting of joint accounts with 67% having had one.

People in the South West are most commitment phobic with 22% not having a joint account because it is too much of a financial commitment.