When a doorstep scammer convinced Alison Heywood’s mum to buy a £1,000 mattress, it was the first sign that Freda, who had dementia, was struggling to manage her finances.
‘I think I’ve done something silly,’ Freda later told Alison, after paying a £500 deposit for the mattress, which never arrived.
But when Alison tried to reverse the transaction on behalf of her mother, she recalls, ‘The bank wouldn’t speak to me – it was like hitting a brick wall.’
Freda and Alison’s story highlights the challenges posed by dementia – but also by the financial institutions that should be able to help.
Here, we investigate how dementia affects day-to-day banking, what support is available, and the steps you can take to manage someone else’s finances safely.
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There are an estimated 982,000 people with dementia in the UK, according to the Alzheimer’s Society, and this number is expected to rise to 1.4 million by 2040.
The charity also estimates there are 700,000 unpaid carers, like Alison, who support people living with dementia in the UK.
We recently surveyed Which? members* living with dementia and people who care for someone with dementia.
One respondent told us their nearest bank branch is 25 miles away; another noted that their bank’s online login process had become more complicated: ‘They give at least three pages to complete and then phone you with a password.’
As the condition advances, managing finances can become a growing struggle. Tasks such as online banking, remembering passwords and card Pins, paying bills, and changing utility suppliers may feel overwhelming. This is where loved ones often step in.
Eight in 10 Which? members in our survey who care for someone with dementia said they manage their day-to-day finances.
This can prove stressful from the start, as one respondent told us: ‘When I took over the finances, everything was a mess. My husband had managed most of it, and there were years of unchecked bank statements. I still struggle to go through them, checking every item.’
There are several ways to set up third-party access to financial accounts, depending on the situation.
Joint bank accounts
Alison needed quick access to her mother’s account to reverse the fraudulent transaction. She was added as a joint account holder and advised by HSBC to also set up power of attorney, which she did.
She recalls: ‘As I live 100 miles away from my mum, the solution was to make me a joint account holder on all of her accounts. This worked well for us as I understand online banking and could quickly access her accounts to help.’
Alison ended up managing her mother’s finances for around seven years, including when Freda was in care. She used the joint account for tasks such as paying care bills, gifting money to the grandchildren for Christmas and paying for shopping.
Many carers in our survey also said they use joint bank accounts, and find them straightforward and easy to use. However, if one account holder loses mental capacity, banks often restrict access unless a power of attorney (PoA) is registered or a deputyship is arranged.
You can only grant PoA while you still have mental capacity.
In England, Wales and Scotland, there are two types. The most relevant here is the property and financial affairs lasting power of attorney or LPA, known in Scotland as continuing power of attorney (this is the only type in Northern Ireland, and is called an enduring power of attorney or EPA).
In this arrangement, the donor grants the attorney (or attorneys) the authority to manage finances on their behalf.
Victoria Lyons, clinical lead for digital services and dementia at work, from the charity Dementia UK, has urged people to think about setting this up sooner rather than later.
She explains that you can apply yourself for £82, or use a solicitor, which will cost more. While applying yourself is cheaper, there’s a higher risk the forms could be rejected if they’re not completed properly – and if the person loses mental capacity during that time, it will be too late to get PoA.
She said: ‘I don't know what age I would say we should all start really thinking about this, but I always say it's good, sensible adulting to just do this.’
If you don’t have power of attorney in place, you’ll need to apply for deputyship through the Court of Protection, a process that can be both time-consuming and costly.
For short-term access, you can set up a third-party mandate, which allows a trusted individual to manage an account, including withdrawing cash or managing direct debits.
However, these mandates are bank-specific and can only be set up while the account holder still has mental capacity.
Specialist accounts
Another option is specialist accounts, such as Sibstar, whose founder cared for their parents after they were diagnosed with dementia.
The prepaid card allows caregivers to control how and where it’s used: they can set daily spending limits, switch cashpoint or online payments on or off, and freeze and unfreeze the card. Plus they can be notified of spending.
But fees apply, including a £4.99 monthly charge and a 99p charge per cash withdrawal.
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What to expect when accessing a loved one’s account
A third of carers in our survey said they found setting up access to loved ones’ accounts – whether through PoA or a mandate – a challenge. Each provider has its own process and grants varying levels of access.
One carer told us: ‘It took the bank several in-person appointments to be granted PoA access. When I requested paper statements, the bank always sent them to the person with dementia’s address – causing either much distress or for them to be buried for weeks in obscure places in the home.’
Others faced difficulties registering their PoA due to banks insisting on them going to a branch, despite closing branches. One respondent said: ‘Trying to register power of attorney was time-consuming and frustrating due to the lack of a branch in my nearest town.’
Even after registering PoA, many carers continued to hit roadblocks. One attorney had to open a second account after being unable to get an additional debit card. They said: ‘Nationwide will not allow the donor and the attorney to each have a debit card on the same account. Life would have been much easier with just an additional card.’
Some banks provide a debit card for the attorney as long as they’re acting solely, or ‘jointly and severally’ in the case of more than one attorney.
Security questions
Others voiced frustrations with security questions, describing them as a ‘nightmare’ for those with dementia trying to access bank accounts. As one carer put it: ‘Too much red tape. Having the person with dementia answer security questions can be very distressing. A dementia-friendly team could make this process easier.’
Survey respondents praised banks with local branches, convenient hours, and easy-to-use online banking. But, with 6,304 branches (64% of the network) having closed since Which? began tracking closures in 2015, these options aren’t available to everyone.
For Alison, her mum’s local branch and its supportive staff proved invaluable, despite the rocky start: ‘HSBC’s support, advice and ongoing care made things easy for me – I knew where to go for help when needed.
‘At times, I’d get a call from the bank asking if mum was paying for something using her card. It was reassuring to know they were looking out for her too. Not all branches may be as caring and supportive, but hers couldn’t be criticised at all.’
Managing her mother Annabel’s finances can take Sophie Cormack anything between half an hour and 10 hours a week, since becoming her attorney a year ago.
‘The time it takes is the main issue. It’s a bit of a nightmare, to be honest,’ she told us.
Setting up the power of attorney was frustrating, and required visiting branches – a challenge as Sophie lives part of the time in Spain.
‘It’s slow and painful,’ Sophie says, ‘and if there’s a small mistake, you have to start all over again.’
Logins and security processes vary widely for her mother’s accounts. Some require multiple cards and card readers, while certain investment firms insist on written confirmation before allowing withdrawals.
Keeping track of payments is another challenge. Sophie uses a detailed spreadsheet to log transactions. Her mother still writes cheques, but statements only show the amount and cheque number – not the recipient.
‘It can be quite alarming not knowing where large cheques are going,’ says Sophie.
Balancing her mother’s independence with practicality is another challenge. ‘Someone with dementia isn’t necessarily consistent in what they say they want or aware of what things cost.’
What support do banks offer?
Several banks offer practical tools to help people living with dementia – and those supporting them – manage money more safely and independently.
Some now offer dedicated payment cards for carers, allowing them to make everyday purchases on behalf of a loved one without needing full power of attorney. These cards come with spending caps and added safeguards to help reduce the risk of financial abuse:
Santander – Carer’s Card Account: a separate account with its own card and Pin. You can nominate up to two carers and load up to £1,500.
Lloyds Bank, Halifax, Bank of Scotland – Trusted Person’s Card: an additional debit card with its own Pin and a weekly spending cap.
Starling Bank – Connected Card: linked to a dedicated 'Space' within your account, with a balance of up to £200 for in-person use only.
Support can also come in other forms. Nationwide, for example, runs free dementia clinics in 200 branches in partnership with Dementia UK, offering personalised advice to both customers and non-customers.
You can also access free support from charities. Dementia UK offers an online series called ‘Dementia: what next?’ for people recently diagnosed with the condition and their families.
One session focuses on financial and legal advice, covering topics such as power of attorney, benefits, care costs and your rights – all led by a dementia specialist Admiral Nurse.
*Which? surveyed 13,788 members of the Which? Connect panel in December 2024, which included 796 respondents who cared for someone with dementia, and 40 respondents who told us they have dementia.
