The Benefits of Having a Joint Account: Is It Right for You and Your Partner?

No matter your family situation, managing finances can be a challenge—but when partners, spouses and kids come into the mix, things can get a little trickier. One question many people face is: should we open a joint account? Here’s what you need to know about joint accounts, including their benefits and their potential drawbacks, to help you answer that question. 

What Is a Joint Account? 

A joint account refers to a checking or savings account which is owned by more than one person. You might open a joint account with a friend, a parent, a business partner or your significant other. Typically, both account owners have equal access to the account—so they can both deposit money, withdraw money, view past transactions, use a debit card linked to the account, order checks, and so on. While joint accounts are often used by married couples, anyone can open a joint account regardless of their marital status. Normally, each person who will be an account holder must show valid ID when opening a joint account. 

Who Needs a Joint Account?  

There are any number of people in any number of relationships who might open a joint account. Joint account holders typically include married couples with combined finances; long-term partners who aren’t married, but still live together and share household expenses; or business partners who want equal access to one account for streamlined bookkeeping purposes.  

Joint accounts can also be held by more than two people. Parents might open a joint account for their teenage child, so that both adults can supervise account activity. On the other hand, a group of friends living in the same house might open a joint account for everyone, to collaboratively manage expenses. 

What Are the Benefits of a Joint Account? 

The biggest advantage of a join account is usually convenience. If you’re living with your partner and sharing equally in household bills, groceries, vehicles and so on, it can be exhausting to manage each expense line-by-line and keep everything equal. Having a joint account enables couples to set one budget for the household, then purchase items or pay bills as needed. A joint account also makes the budgeting process much simpler. Rather than calculating cashflow in and out across various cards and accounts, a joint account gives families a single view on what money is coming in and where it’s being spent. 

What Are the Potential Drawbacks? 

Combining finances requires trust, honesty, and ongoing conversations about money. Before opening a joint account, sit down with your partner for a thorough discussion on how the account will be managed. Will you both contribute equal amounts each month? What happens if one person loses a job, or has an unexpected personal expense arise? Work as a team to decide what makes sense for your situation—some couples put part of their money into a joint account, but retain a separate personal account as well. Either way, it’s a very smart idea to have a household budget in place before opening a joint account. 

Finally, keep in mind that some joint accounts allow the account to be closed by just one partner, without the other’s consent; and some accounts may allow one owner to remove the other. Check in with your financial institution about specific policies for joint accounts, so that all the rules and responsibilities are clear.