In the first of our ‘Understanding banking‘ series we’re going to take a look at the bank account name and the role it plays in the identification and differentiation of bank accounts.
Whether you’re opening a new account, managing an existing one, or providing your information for payment, the account name is as a crucial detail, but can be confusing. Especially when banks themselves often give names to their different account offerings. So, what exactly is an account name for a bank account?
What is the account name for a bank account?
Simply put, the bank account name is the name of the account holder, usually formatted as ‘Firstname Surname’, but can also include middle names or a middle initial.
For business accounts, the account name the business name, while for sold traders it will be the name of the account holder. Joint account holders may find that the account name is one or other of their names or both.
The account name serves the crucial purpose of identifying the account holder and ensuring the accuracy of financial transactions.
What’s the confusion around the bank account name?
Confusion often arrises when companies ask for the bank name and the account name (and sometimes the address of the bank). The language used leads many to believe the account name is the name given to the account by the bank. For example Santander (as the bank), Edge account (as the account name). But as we’ve pointed out, it’s not the name of the account they really want, it’s the name on the account.
Bank details account name example
As an example, if your name is Chris Murphy, and your account is a Nationwide FlexDirect account. The account name would be “Chris Murphy”, the organisation asking for the name doesn’t care if your account is a FlexDirect account or a FlexPlus, or a FlexBasic account. They want to know the name of the account holder.
For limited companies the name of the account will be the name of the business. So a company called Bloggs Ltd, would list the account name as “Bloggs Ltd.”
Things can be a little more tricky for sole traders. Technically there is no difference in law between the person and the business for sole traders, but the name displayed on the account can differ between banks. For example, as sole trader called Joe Bloggs with a trading name of Bloggs Plumbers, might be shown on a Starling business account as Bloggs Plumbers (Joe Bloggs T/A).
In all cases though the sole traders name is the one that should be as the account name e.g. Joe Bloggs.
Where can I check my account name?
Since the account name is just the holder of the account, you can simply check that your name is held correctly with your bank. It should clearly be shown on any bank statements, or correspondence the bank sends.
You’ll also be able to find it in the personal details section of your online or mobile banking.
You might have your name printed on your debit card, but don’t count on that as being the account name. Some banks allow you to choose how your name appears on your cards, and it might not match exactly the name on your account.
What happens if I get the account name wrong?
The account name serves an important purpose of identifying the account holder and ensuring the accuracy of financial transactions. Yet getting the name wrong doesn’t necessarily mean the transaction won’t go through.
If the mistake is minor and the intent is clear then you are unlikely to have a problem, but it depends on the type of transaction.
An example of a minor error might be missing out a middle name. e.g. Sarah Smith rather than Sarah Jane Smith, or a simple typing error such as Jonh Doe, instead of John Doe.
In situations like this, if the transaction is setting up a direct debit, or even a recurring card payment, the transaction is still likely to go through. If on the other hand its for a faster payments transaction, and the sending bank uses confirmation of payee, then you could run into issues.
Can I change my account name?
Yes. If you notice your name is spelled incorrectly on your account, or it includes middle names or hyphens that you’d rather were not used, you can usually change it by contacting your bank.
For larger changes such as a complete change of name, change of name due to marriage or similar, you will need to provide proof of the change.
