Martin Lewis, founder of Money Saving Expert (MSE), has warned anyone who has – or is considering opening – a joint bank account that their partner could “legally” take out all of the money. In an MSE blog updated on September 29, the consumer finance expert said joint accounts work well for some couples, but added that “within the context of financial abuse, there are obvious and significant concerns over joint accounts.”
Legal access to all funds
Lewis explained that “joint bank or savings accounts aren't necessarily a bad idea for those in long-term, loving, non-abusive, trusting and stable relationships, if that way of managing money works for you. Though if the relationship changes, even if it is not abusive, separating joint accounts and whose is what can be a cause of great stress and friction.”
He warned: “In a joint account, one partner can LEGALLY take all the cash.” The MSE founder also pointed out that with a joint account, either partner can usually access the money without the other’s consent – and in most cases can withdraw the entire balance if they want to. If that worries you, you can speak to your bank about changing the account mandate, so both account holders have to approve any withdrawals. “This may stop you having access to a debit card and access to online banking though,” he added.
Separate finances and credit files
Lewis said that keeping your finances separate can also be a practical way to manage money if you have different spending styles – for instance, if one of you tends to spend more and the other prefers to save. It can ease pressure, reduce tension and help prevent avoidable rows.
“It's also worth reminding you getting a joint account links your credit files, so if one has a poor credit score it is best avoided, or it can bring you both down,” he warned, adding: “I'd be especially wary of setting up a joint bank account (other than just for joint bills) too early in a relationship – especially if they are pressuring you or trying to convince you that it is a way to show love.”
Lewis concluded: “Give any new relationship time and really get to know the person before you commit to joining your finances or giving them money. Maybe test it out by asking a sensible close friend whether they think it is time – their distance may be a valuable perspective.”
Signs of financial abuse and where to get help
Lewis writes: “Financial abuse is the hidden financial cousin of domestic abuse – it's all about dangerous, unfair control using finances. It can be subtle or brutal.” MSE warns that this type of abuse can be hard to recognise. It might start with seemingly innocent requests for money, taking cash from your purse or wallet without asking, or even a 'helpful' suggestion that you stay at home or look after the children while they go out to work.
On their own, these things can be perfectly normal and harmless. But if a partner becomes aggressive, coercive or manipulative – physically or emotionally – and begins to restrict your independence, that’s a red flag. And when it’s happening to you, particularly from someone you love, it can be confusing and difficult to spot, let alone acknowledge.
MSE notes that it is worth considering talking to, or getting web guidance from: the Live Fear Free Helpline on 0808 80 10 800 in Wales; the National Helpline for LGBT+ Victims and Survivors of Abuse and Violence on 0800 999 5428; the Domestic and Sexual Abuse Helpline on 0808 802 1414 in Northern Ireland; Scotland's Domestic Abuse & Forced Marriage Helpline on 0800 027 1234; the Men's Advice Line on 0808 8010327 and Men's Advisory Project on 028 9024 1929 (Belfast) or 028 7116 0001 (Foyle) in Northern Ireland; and the National Domestic Abuse Helpline on 0808 2000 247, run by Refuge. You can also download the free Bright Sky app for more advice on how to spot the signs of domestic abuse, and how to support someone you’re concerned might be a victim.
Lewis explains: “These charities are there to support you emotionally and practically – so don't be scared to call. Though again, a reminder that if you are in immediate danger, call the police on 999. And of course, it may not be you, you may suspect it is happening to someone you care about. It is likely you'll wrestle with whether to 'interfere' or not.”
Yet there are tell-tale signs, MSE says, such as: they don't have debit or credit cards and can't check their bank account balance; changes in their standards of living, for example not having things they normally would, or not going out as they would before; they seem socially withdrawn and different from before; they can't explain their lack of access to money; and they don't have money to pay for bills and food.
Thanking Women's Aid and Surviving Economic Abuse “for their help and guidance for those directly facing domestic and financial abuse”, MSE has written an easy-to-understand guide which you can read here.
