What is a joint savings account?

A joint savings account works just like a solo one, but it’s held by two people who can both pay in and take money out. It can be ideal for couples, friends or family members who want to save together, whether for a big goal or just a shared emergency fund.

Many savings accounts can be opened jointly, including easy access, regular saver and fixed rate options. The key is choosing the type that suits your needs, depending on whether you want flexibility or a better rate for locking money away for the longer term.

It’s worth noting the perks – and the precautions. On the plus side, you get shared savings momentum and transparency. On the flip side, either of you can withdraw without the other’s consent. So it helps to set some ground rules from the start. Then you’re all set to start saving together with everything in one place.

What to consider when comparing joint savings accounts

With plenty of joint savings accounts out there, it’s all about finding the right one for how you save together. Whether you want to dip in and out or stash money away for the long term, here are a few things to look out for:

Interest rates

Many joint savings accounts come with variable rates that can go up or down. Some include a bonus rate for the first few months, so it’s worth checking how long the top rate lasts.

Deposit options

If you plan to add money regularly or in lump sums, make sure the account allows it. Some might come with minimum opening or ongoing deposit requirements, so read the small print.

Withdrawals

While joint accounts often offer easy access, some limit how many times you can withdraw without affecting the rate. If you want full flexibility, pick one with no strings attached.

Eligibility

Certain providers only offer their best deals to existing customers. You may need a current account with the same bank to get access to their top joint savings rates.

Can I have multiple savings accounts?

Yes, and in many cases, it’s a smart move. Having more than one savings account can help you stay organised and make the most of different interest rates, especially if you’re juggling a few goals at once.

You might open a joint savings account for shared goals like a new kitchen, a holiday or saving for a bigger home. At the same time, you may wish to keep separate accounts for personal savings.

Different account types can work together too. You could keep your everyday savings in an easy access account, move some into a regular saver each month for a higher rate, or lock away a lump sum in a fixed rate account if you don’t need it for a while. A bit of planning means your money is always working harder for you.

Will we have to pay income tax on interest earned on our joint savings account?

It’s usually possible to earn a decent chunk of interest on your savings before the taxman gets involved. That’s all thanks to a few helpful allowances, which we look at below.

Bear in mind that in the eyes of the taxman, each of you receives 50% of the interest from a joint account. With that understood, here’s how allowances for you as individuals work:

If your total income (including savings interest) is under £12,570 a year, you typically won’t pay any income tax at all – that’s your Personal Allowance.

If you earn less than £17,570, you might also get something called the starting rate for savings. This could let you earn up to £5,000 in interest tax-free (though the amount goes down as your income goes up).

The Personal Savings Allowance (PSA) means most taxpayers can earn up to a threshold of interest before paying tax on it:

  • Basic rate taxpayers (20%): You can earn up to £1,000 in interest tax-free. To give you an idea, if your savings account pays 4.8% interest, you’d need just over £21,000 saved to reach the £1,000 PSA limit in a year.

  • Higher rate taxpayers (40%): Your tax-free limit is £500. You’d need around £10,500 saved to hit the £500 limit, based on receiving 4.8% interest.

  • Additional rate taxpayers (45%): Sadly, no allowance here.

So unless you’ve got a hefty savings pot or a high income, there’s a good chance you won’t owe any tax on your interest. Read more about tax on savings interest here.

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Page updated on 11th September 2025, Reviewed by Richard Groom