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Joint bank account for student house? Watch

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    I'm living in a house of five people this September, and I figured it would be easiest to deal with household bills by having one debit card for the entire building. So all the utilities, bills and rent could come out of one place and it would hopefully mean that everyone is chipping in a fair amount (as we could all put some money in at the start of term and just leave it there).

    Are there any bank accounts who do this especially well, or any things to consider when doing this?


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    I think it is a good idea IF everyone is going to stick to it. I've lived with people before and an idea like this is great at the beginning but be careful it doesn't cause any conflict when someone is skint one month and doesn't want to put in.

    It is good though if everyone does put in equally. In the last house share I was in - I ended up paying for toiletries ect on my own every month. However, that's to be expected in a house share.


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    (Original post by Aries1992)
    I think it is a good idea IF everyone is going to stick to it. I've lived with people before and an idea like this is great at the beginning but be careful it doesn't cause any conflict when someone is skint one month and doesn't want to put in.

    It is good though if everyone does put in equally. In the last house share I was in - I ended up paying for toiletries ect on my own every month. However, that's to be expected in a house share.


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    I was hoping to get everyone to put in the money when the loan comes through... So, the start of each term, plus a little in extra for unexpected stuff. Then, at the end of term (or the end of year) just refund the difference to everyone.

    By giving the money to the account straight away, there would hopefully not be the possibility of being unable to pay each month as the money is already there. It would force everyone to budget properly.


    I'm just a little cautious because I think our gas and electric is quarterly there, so we need to be prepared to pay extra in heating.
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    (Original post by SillyEddy)
    I was hoping to get everyone to put in the money when the loan comes through... So, the start of each term, plus a little in extra for unexpected stuff. Then, at the end of term (or the end of year) just refund the difference to everyone.

    By giving the money to the account straight away, there would hopefully not be the possibility of being unable to pay each month as the money is already there. It would force everyone to budget properly.


    I'm just a little cautious because I think our gas and electric is quarterly there, so we need to be prepared to pay extra in heating.
    Yeah it's a good idea then if you do this. Are you getting readings on the utilities or estimates? If your getting estimates then you can judge how much you will all have to put away for them once you've received your first bill as they rarely change much.





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    (Original post by Aries1992)
    Yeah it's a good idea then if you do this. Are you getting readings on the utilities or estimates? If your getting estimates then you can judge how much you will all have to put away for them once you've received your first bill as they rarely change much.
    I honestly have no idea how it works. I need to read up on things like that and ask the parents.

    I also need to speak with the landlord and possibly write to the current occupants (they're a nice bunch as they showed us around the property due to the estate agents being really crappy) and getting an estimate for bills from them. I'm not too sure which methods work best for consistent and yet low bills. I'm not sure if the gas meter takes those top-up cards or whatever they are.

    The estate agents suggested we join a service where we pay a flat fee each month and then they refund us the difference at the end of the year, but it just looks like a bit of a scam.
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    This is a terrible idea. If one of them defaults or misses payments on any of their own borrowing, even in a different account, it will badly effect your ability to get credit (and affordable credit) in the future. And if that did happen you'd need to go through the hassle of getting a notice of disassociation to deal with it.

    And unless you had an account requiring multiple signatures, it's far too easy for someone to walk into the branch and take all the money. The bank wouldn't necessarily check who it was for you either, since no real fraud would have taken place. The person would be fully within their rights to withdraw it all.
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    (Original post by SillyEddy)
    I honestly have no idea how it works. I need to read up on things like that and ask the parents.

    I also need to speak with the landlord and possibly write to the current occupants (they're a nice bunch as they showed us around the property due to the estate agents being really crappy) and getting an estimate for bills from them. I'm not too sure which methods work best for consistent and yet low bills. I'm not sure if the gas meter takes those top-up cards or whatever they are.

    The estate agents suggested we join a service where we pay a flat fee each month and then they refund us the difference at the end of the year, but it just looks like a bit of a scam.
    No! Do not do ANYTHING with estate agents. They are simply robbers that don't get put in prison! £50 for an admin fee! What! £50 for you to press a button more like.

    Honestly, I know it's a pain working out your own bills instead of having them included but its worth it.


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    (Original post by PJ991)
    This is a terrible idea. If one of them defaults or misses payments on any of their own borrowing, even in a different account, it will badly effect your ability to get credit (and affordable credit) in the future. And if that did happen you'd need to go through the hassle of getting a notice of disassociation to deal with it.

    And unless you had an account requiring multiple signatures, it's far too easy for someone to walk into the branch and take all the money. The bank wouldn't necessarily check who it was for you either, since no real fraud would have taken place. The person would be fully within their rights to withdraw it all.
    How would you suggest we do it then? Is it possible to split bills and the such and have everyone responsible for their own contributions separate to everyone else?
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    Don't.

    I assume you are somewhat friends with the people you chose to move in with right?

    So why don't you just keep book of all the expenses and say every 3 months see who paid what and who owes what. Much easier imo.
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    OP this is a terrible idea, if any of you guys have an argument or whatnot it's totally going to fall apart. If you have a joint contract just split the bills etc. and pay for them from your separate accounts. Much less hassle that way.
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    (Original post by danny111)
    Don't.

    I assume you are somewhat friends with the people you chose to move in with right?

    So why don't you just keep book of all the expenses and say every 3 months see who paid what and who owes what. Much easier imo.
    That's right, we're good friends getting a house together.

    However, doesn't that still leave the issue of people not being able to pay money if they lack it? Won't that still affect all of us?
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    (Original post by SillyEddy)
    That's right, we're good friends getting a house together.

    However, doesn't that still leave the issue of people not being able to pay money if they lack it? Won't that still affect all of us?
    But who has the debit card of the account? Who pays money into the account?

    As long as I am sure I would get paid back, I wouldn't mind paying up front. I know someone who had lent several 100 to various friends. Got it all back.
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    (Original post by SillyEddy)
    How would you suggest we do it then? Is it possible to split bills and the such and have everyone responsible for their own contributions separate to everyone else?
    Some of my friends have an account used for join bills etc, but it is in the name of one person.

    I imagine I will adopt something similar next year when I live in a house.

    Especially with 5 people everyone taking one bill or something won't work very well and is more unfair.
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    Just split each bill between you? (e.g. divide the water bill by the number of people and so on).
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    (Original post by Ezekiella)
    Just split each bill between you? (e.g. divide the water bill by the number of people and so on).
    And have one person as the named person responsible for that bill? So just have on person paying it?

    If others can't pay on the day, isn't that just going to ruin the bank account for the person whose name it is in?

    Hence why I thought it would work best to put money in a single account at the start of term and let bills be taken from that. The money is already there so nobody needs to go into an overdraft to pay it for that month.
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    Personally I would recommend dividing the bills out in a fair way (eg each person picks a bill randomly from a hat). If you have more bills than housemates then pair up the lower value bills together so there are as many pieces of paper as housemates, if you have less bills than housemates then pick high value bills and split them into first and second halves of the tenancy so again there are as many pieces of paper as housemates. Then everyone pays the bill they've been allocated from their personal account. When they receive a bill they put it in a pre-agreed place and let everyone know they need to pay their share of £x by y date. Then once everyone has paid their share and it's been paid to the company the bill is taken away. You may also want to set up some sort of system for confirming someone has paid, eg paying by bank transfer so there's proof on both people's bank statements of what has been paid, by who and when.

    This isn't perfect but it has lots of advantages over a shared bank account. You aren't financially linked so if someone messes up their credit score in the future it doesn't affect you. Nobody can withdraw other people's money like they could in a shared account with their name on. People may not pay but if they don't pay under this arrangement it's likely they wouldn't pay into the shared bank account either. At least under this arrangement if they don't pay you have the option to not pay their bill, saying that they can take the money from the £x they owe you. This also means you only have to cover the cost of one bill to avoid a poor credit history and bank charges, if the others don't get paid those things are someone else's problem.
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    In my house I have a joint bank account with one of my housemates, the rest are not on it. Everyone pays a set figure every month to cover rent and bills into the account and all bills come out of it.

    At the end after everything is paid ill just share out what is left amongst us all, and close the bank account and all bill accounts.


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    My house has a bank account that we all pay money into (rent, £50pm bills and housekeeping). It's in one person's name only, to avoid issues with credit rating. Some people pay all the money owed when their loan comes in; others pay monthly as they prefer. All bills come out of that account, and any surplus will be split equally at the end of the year.

    Different people's names are on different bills to spread the liability and so that people have proof of address so that they need it, but they're all split equally.

    It's always worked fine so far, though we're all fairly good at financial management, and so no one has failed to pay.
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    (Original post by SillyEddy)
    I'm living in a house of five people this September, and I figured it would be easiest to deal with household bills by having one debit card for the entire building. So all the utilities, bills and rent could come out of one place and it would hopefully mean that everyone is chipping in a fair amount (as we could all put some money in at the start of term and just leave it there).

    Are there any bank accounts who do this especially well, or any things to consider when doing this?
    Will it be your first year? Do you know these housemates? If you know what they are like and will agree to it then yes its a good idea, if you don't then no don't do this please don't as you could all pay the cash in and someone could run off with it and spend it all. :eek:
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    (Original post by Tim99)
    Will it be your first year? Do you know these housemates? If you know what they are like and will agree to it then yes its a good idea, if you don't then no don't do this please don't as you could all pay the cash in and someone could run off with it and spend it all. :eek:
    It will be the second year. I'm good friends with two of them, and pretty decent friends with the other two. That is to say, three of us are on the same course. The other two are on their course together. We go out and socialise as a group though.

    I don't have any reason to suspect that any of them, or myself, would have money issues.

    Locking the money away and making sure nobody could spend it (only that essential household bills would come from that stash) is my main concern though.
 
 
 
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