Just wondered if anybody on here is involved in Banking and can advise me.
My daughter is moving into a house with 3 student friends for 2 years whilst they finish their degrees.
They have rented the house, but they will be paying seperately for utilities such as Gas, Electricity, Water, Telephone and Broadband. This will cost them about £15 each per week. This would also include the rent of the house.
They plan to pay by direct debit, per month.
My question is
Is there a bank that has a sort of joint account that each of the students can pay a direct debit to, for their portion of the utilities and rent. The utility companies and the estate agent would then take a one off monthly payment from that account.
That's what my housemates and I did in my second year. We roughly estimated what the monthly bills would be per person, to which it was about £60 each, then multiplied it to the number of months between loans. It was like paying in £250 every 4 months and that more or less covered it. We set direct debits from the joint-account to each company, paying a set fee to the electricity and water-rates. Of course, we took the same approach with the rent, but most importantly we put everyone's cards in a sealed envelope and vowed to never touch them. We didn't want the awkward situation of someone drawing on the account, maybe on a night out or whatever - that might cause friction.
Yes, Direct Debit is far better as it makes them all responsible and it can't fall back on to others. My daughter managed to get the house with their approval, and I don't want her being landed with any non payments and things like that.