He shared some tips around bank accounts on his BBC podcast
Martin Lewis has offered some crucial guidance regarding managing your bank account and domestic finances. He provided multiple recommendations about handling your routine expenditure on his BBC podcast. He also pointed to one bank account in particular that may be worth going for.
The money expert invited his listeners to submit their top tips for managing day-to-day finances when you’re in a relationship. Mr Lewis noted that patterns have shifted over the decades, as people now typically find their partner at a more mature age when they’ve often already established their own separate financial arrangements.
Mr Lewis said it’s vital to approach this correctly and ensure you’ve got the most suitable strategy for your circumstances. He said: “The way that people operate their finances together is absolutely crucial.”
One listener of the programme said she holds a joint account with her husband and that she handles all the financial matters, as she is “financially savvy” while her husband is not.
Mr Lewis offered a cautionary note regarding this unilateral method of managing your finances. He said you can demonstrate the problem with “three Ds”, specifically death, divorce and dementia.
Mr Lewis warned: “The problem with one person doing it is, if they are not communicating with the other partner, if there isn’t a good financial factsheet list of details of who every provider is and why the decisions were taken and made, then if one of the three Ds were to hit the person who is in charge of the finances, it can leave the other partner in the lurch terribly.”
Mr Lewis conducted a survey among his followers, with half of those who responded indicating that one individual within their relationship manages the household finances. The financial guru said he had encountered numerous people throughout his career who have suddenly confronted this predicament, especially women in their 50s whose husbands have died.
Plea for couples managing their finances
Given this risk, Mr Lewis made a “plea” to the listener and anyone else where it falls entirely to one partner to handle the bills. He said: “It’s fine for you to be the lead financer in your family, as long as your husband who you say isn’t good with money, understands the decisions you’re making and you have enough details and explanation, that in the event something were to happen to you, he would be able to take over relatively seamlessly.
“If not, the gift of looking after the family finances can be a curse.” Another listener to the programme said that they and their partner hold an informal discussion approximately every six months to review their finances jointly.
Mr Lewis praised having a routine conversation of this nature. He said: “I think those meetings are incredibly important. Kitchen table financial budgeting meetings – especially if family finances are tight – are really worthwhile doing.
“So you’ve got somebody to pass the information off, and check that everybody is happy and everybody understands what is going on.”
However, Mr Lewis said there is no fixed rule regarding how one approaches this. He explained: “There is no right or wrong way to do this, I wouldn’t want to be prescriptive.”
Mr Lewis was especially taken with a suggestion from one person, who mentioned they compile a ‘monthly net worth statement’ to obtain a clear picture of their financial position.
‘Stand out’ bank account for couples
One enquiry arrived from someone who was about to move in with her partner. She was curious whether there was a particular bank account Mr Lewis would suggest for them, preferably with some additional benefits.
Mr Lewis noted there is a “stand-out account” that could be worth considering. He initially directed her towards the accounts offering bonus payments for switching.
Currently, you can secure £200 from Lloyds Bank for switching to Club Lloyds or £500 for transferring to their Premier Account; plus £175 from First Direct, £200 from Santander and £100 for switching to Co-operative Bank.
Mr Lewis hailed his “top pick” from these options for this listener as the Santander Edge account, since you can receive the £200 for your switch, alongside a 6 percent easy access savings account up to £4,000.
You can also receive one percent cashback on bills paid by direct debit from your current account, with up to £10 a month in cashback available. This covers the £3 a month fee for the account and effectively generates you £7 a month, or £84 annually.
Mr Lewis said: “For joint accounts, if they are bill-only accounts, that would be your winner.”
