When you’re in love, you tend to want to share everything, and once you’re living together that often includes pooling your money into joint accounts.
While that can make sense, especially when it comes to contributing to bills, holidays and other shared expenses, it’s rarely a good idea to do this with all your cash.
Having some money, which is clearly your own, that’s held in your own account, means you’ll retain some financial independence.
In short, it’s your money to spend as and when you wish without having to ask permission to buy something or justify purchases at a later date.
Is having your own savings account in a relationship a good idea?
It all depends on your relationship, really.
Some say it helps to discuss how you plan to save independently with your partner upfront. This is so you’re on the same page when it comes to joint savings goals – especially if you have different approaches to money.
Yet, there’s also a strong argument that keeping some of your savings secret could be a good thing – even though it might go against the foundations of trust most believe are vital in a relationship.
Sound like a strange thing to have? Well, 2024 research from financial reviews site Smart Money People found one in five people say they have a secret savings account, as they don’t discuss finances with their partner.
What’s more, 37% of people in a relationship are secretly saving to maintain financial independence.
Why is it important to have an emergency fund?
For most, it’s there to maintain that independence.
But interestingly, 26% of women with a secret savings account are cultivating a breakup fund. For men, it’s just 20%.
The research also stated that a breakup fund is most prevalent among people in their 30s.
Ultimately, these kinds of savings accounts act as your own insurance policy if things aren’t going well. It’s money that would allow you to ditch your partner without worrying in the short term about things like how you’ll afford somewhere to live in the immediate time after leaving. Or let you buy a new car or other things that were previously shared.
What is your opinion on keeping a secret savings account while in a relationship?
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It’s essential for financial independence
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It’s unnecessary if you trust your partner
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It’s useful as a safety net, just in case
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It can potentially harm trust in the relationship
Yes, it all sounds like a downer, and hopefully you’d never need to use it. But having one could give you the breathing space you need if you really want or need to end things. It means you don’t have to stick somewhere that’s making you unhappy, or worse, because you can’t afford to leave.
And the money can also apply to other situations you want to leave – perhaps a bullying boss or toxic work environment.
Secrecy aside, this doesn’t mean you shouldn’t trust your partner with money.
If anything, it’s vital that you actively and regularly talk about (the rest of your) finances with them.
Doing so isn’t just going to strengthen your ability to spend and save together, but pulling together for the same money goals could help keep your relationship powering along for years to come.
Easy Access Savings Accounts
What’s really important with these kinds of accounts, and any kind of emergency fund, is that you can access them as soon as you need the money, which means they need to be in easy access accounts.
Rates are falling and are set to fall even further this year if we get more base rate cuts as predicted. Even so, don’t let that put you off finding the highest-paying account right now. You can always move your money again if you find there are higher paying alternatives.
A handful of current accounts offer higher paying rates than those below, but you’ll need to open a current account first if you don’t already have it. Here are four top-paying accounts that anyone can open.
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Bank: Cahoot
Account Rate: Sunny Day Saver
Rate: 5.00% AER variable for 1 year on balances up to £3,000 -
Bank: Charter Savings Bank
Account Rate: Easy Access
Rate: 4.46% with unlimited penalty-free withdrawals with a minimum deposit of £1 -
Bank: Skipton Building Society
Account Rate: Quadruple Access Cash ISA Saver
Rate: 4.00% tax-free/AER variable -
Bank: Yorkshire Building Society
Account Rate: Easy Access Saver Issue 3
Rate: 4.10% and allows unlimited penalty-free withdrawals
Follow Andy, award-winning blogger and podcaster from Be Clever With Your Cash, on Instagram and YouTube, or visit becleverwithyourcash.com.
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