Do you keep a ‘runaway fund’? Half of couples keep secret savings hidden from their partner
MORE than half of people in a couple have a separate savings accounts, according to new research, and one in six of them keep the funds a secret from their other half.
Dubbed "runaway funds" by experts, the cash is often hidden to maintain financial independence in case the relationship breaks down.
Women are most likely to have a secret stash of cash, according to investment firm AJ Bell, typically of around £6,325.
Meanwhile men have around £8,333 on average in a bank account they hide from their partner, reports the .
Over half of women who separate their savings from their other half do it to maintain independence but almost a quarter keep it a secret because they don't trust their partner.
Most men believed that they need the funds in case their relationship ended, while a third believe that the money is there in case they left their job.
What are the risks of joint bank accounts
HERE are the main setbacks to consider before opening an account with a friend, business or life partner
- Opening a joint account links people financially, meaning it could affect your credit rating. If the other account holder has a low credit score it could potentially damage yours.
- If your joint account becomes overdrawn by one of the holders, each person is liable for repaying the debt.
- All transaction will be able to be viewed by all account holder, so you'll lose your privacy.
- If one of the account holder takes cash from the account without your knowledge, you won't be able to get it back - so make sure you trust the person you open the account with.
Younger people aged between 25 and 24 who are in a couple are more likely to have separate savings accounts.
Around 65 per cent of this age group have their own accounts compared to just 45 per cent of the over-55s.
Money experts recommend that everyone in a relationship does have their own "runaway fund" to make sure that they are financially independent.
They particularly advise couples who live together but aren't married to do so.
Maike Currie, director of investment firm Fidelity, told the newspaper: "It's not just about women – everyone should have a fall back or runaway fund.
"Having such a fund doesn’t mean you want to run away from your partner but it does mean you have the savings to leave a failing relationship, a bad job or even a controlling parent. It’s about choices."
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One writer recently revealed why she refuses to have a joint bank account with her husband of 10 years, despite sharing a home, mortgage and two children.
If you are looking to open a joint bank account, then you should read our guide first so that you're completely in the know before signing up.
Alternatively, we've got a round up of the best savings accounts that you can open on your own.