What to Know About Joint Checking Accounts

Some of the biggest causes of stress in a relationship stem from finances. If you’re considering opening a joint checking account, there are some things you should know. Here are some common questions surrounding this type of bank account.

Managing a Joint Checking Account

Questions about joint checking accounts often include:

Q: What exactly is a joint checking account?
A: A joint account is a checking account shared by more than one person. Each person on the account may add, withdraw or transfer money and has access to account records.

Q: Who uses joint checking accounts?
A: Joint checking accounts are common among married couples. Adults also sometimes share a joint checking account with an elderly parent or adolescent child as a way of monitoring and managing expenses.

Q: What are the advantages of opening one?
A: Bills and expenses become easier to manage as the two people involved no longer have to determine “their share” of a utility bill, groceries, rent, mortgage or any other expense. With a joint account, any money spent is coming out of the same pile.

Because the income from both parties is combined, the balance on a joint checking account will be higher than it would be for two individual accounts. This increased balance creates less likelihood that checks will bounce and can keep account fees to a minimum.

A joint checking account provides greater transparency of all the finances involved in the relationship and harbors trust and communication.

Q: What should we be careful about?
A: A joint checking account doesn’t offer any financial privacy between partners, as both parties are able to see every transaction that occurs. Additionally, either person has the ability to take all of the money from the account without consulting the other, which can be a problem if a relationship sours.

Checking Accounts at First Bank*

Whether you’re considering a joint account or separate bank accounts, First Bank can help. We have a number of checking accounts designed for different needs that can put you and your partner on your way to financial happiness.

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Source:

Investopedia: http://www.investopedia.com/articles/pf/09/marriage-killing-money-issues.asp