09 May 2016

I do... join my finances with you

Nine out of 10 couples join finances with a current account

When it comes to merging finances with a partner, young people are taking their time compared to the older generations according to new research from TSB. 

Renting together (35%) is the main reason couples under 35 gave for why they merge their finances, with just one in ten (8%) couples (under 35) waiting until they say 'I do'. This is in comparison with two fifths (43%) of over 55's surveyed who said they waited until after marriage to merge finances.

TSB's research looked into how couples manage their joint account finding that older generations (over 55's) waited just one year and ten months before opening a joint, whereas their children -people under 25 wait an average of two years and three months.

Across all generations seven in 10 (70%) couples open a joint account in both their names. However, interestingly it is now more likely for young women (16%) to add their partners name to their bank account, compared to young men (6%) adding women's names to their account. Twenty or thirty years ago just one in ten (10%) women over 55 added their partner to their account, and two in 10 (21%) of men.

TSB's Head of Current Accounts, Craig Bundell said,"It's great to see that people today are working in partnership to manage their finances. Whereas twenty or thirty years ago, it was likely to have been men managing finances. Today however, young women are more likely to add their partner to their account."

When couples do decide take this step, nine-in-10 are most likely to do it with a current account (90%), followed by a savings account (51%) and a mortgage (47%).

Harry Benson, research director of the Marriage Foundation, said:"Joint accounts are more common among married couples, most likely reflecting a higher level of trust and commitment.

"There is some evidence that younger cohabitees are more willing to use joint current accounts. However, this has not happened with savings accounts. One-quarter of cohabitees have no financial links with one another at all, which is pretty astonishing."

However, people aren't always so forthcoming when it comes to what they are spending. More than two fifths (42%) of Brits have admitted to hiding purchases from their partners or have pretended that purchases cost less than they actually did. Women are worse than their male counterparts when it comes to hiding purchases with half (49%) admitting to have done this, compared to just a third (33%) of men.

The research also found that one three people who lie about their spending habits do so because they don't want their loved ones to know about the state of their debt.

TSB's customers are able to have one sole Classic Plus account, and a joint Plus account, which means couples are able to reap double the benefits.

TSB Classic Plus account customers earn five per cent AER interest on balances up to £2,000 with no monthly fee, plus customers are able to earn five per cent cashback on the first £100 of contactless payments every month until 31 December 2016.

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Notes to editors

TSB research based on a One Poll survey of a representative UK sample of 2,000 UK adults between 04 March and 18 March 2016.

TSB Classic Plus account gives 5% AER/4.89% gross variable interest on balances up to £2,000 (no interest on balances more than £2,000). Interest is paid monthly. You must pay in at least £500 a month, register for Internet Banking, paperless bank statements and paperless correspondence. You must be 18 or over and a UK resident to apply.

To be eligible for contactless cashback customers must hold a TSB Classic Plus account and have either a contactless debit card or be registered for Apple Pay. Customers need to sign up for internet banking. Cashback is available on the first £100 of contactless or Apple Pay purchases each calendar month. Cashback is paid monthly. The Classic Plus account must be open at the time cashback is paid. Cashback will be paid on qualifying purchases made up to and including 31 December 2016, unless we tell you otherwise. Consumer research was carried out by Onepoll. A random sample of 1,200 adults, were surveyed between 30 March and 7 April 2016."

TSB was created to bring more competition to British banking - to be a real challenger to the big banks and to deliver the kind of banking the people of Britain want. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.

We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.

Our 4.7 million customers, award winning mobile and digital banking, nationwide network of branches and 8,600 Partners mean we are big enough to make a difference, but small enough to be an agile challenger to the entire market.

For further information about TSB Bank plc, please visit our website www.tsb.co.uk.