Very excited to read the following:
"We believe there is a need for customers to manage some finances jointly, but we don’t think that the traditional joint account, separated from your personal finances, meets those needs anymore.
We want to make it possible for customers to connect their accounts to one another and create a virtual account that will allow them to better manage and contribute to their shared finances — whether that’s two partners, friends sharing a rented flat after moving to a new city, a family running their household or a circle of friends away travelling.
We’ll be looking to launch our ‘connected accounts’ towards the end of the year, so please get in touch if you would like to give us some feedback about how you effectively manage your shared finances."
With regards to using such an account it would be ideal if Direct Debits can be set up on the virtual account.
Paying proportions of rent / mortgage rent etc would be made much simpler if one could set a percentage contribution from each connected account.
Say rent is £700 pcm and a direct debit is set up on the virtual account for this amount.
Two accounts are members of this connected account.
1 member earns a third of the basic salary of the other.
Thus they agree to split the rent payments:
member 1 paying 66%
member 2 paying 33%
If with suitable permissions given by both parties a DD on the virtual account can be configured in this way, then the direct debit will be taken from the virtual account and the relevant proportions of the payment sources from member 1 and 2’s personal accounts, negating the need to transfer money around.
This is particularly useful when it comes to variable value direct debits where the amount may change on a monthly basis, i.e. utility payments.
Connected accounts should be able to have different settings for proportional payments on each DD agreement, with some or all funding coming from one or more connected accounts.
Any changes should be authorised by both parties.