A bank account is necessary for every adult to have a fully functioning life. This account safely holds your money in a secure location. It also makes many common aspects of life easier, including paying your bills, collecting your paycheck and acquiring credit. There will eventually come a time during a committed relationship when you may think about opening a joint bank account with your partner.
What is a Joint Bank Account?
A joint bank account is nearly identical to an individual account, except it has multiple owners. This means both people listed on the account will have full access to the money. Both owners will get their debit card and checkbook, but the money is shared in the same account. This is a common way for spouses to share their finances during the marriage.
How to Open a Joint Bank Account?
It is effortless to open a joint bank account with another person. You will both have to go to your desired bank to provide them with your personal information. This includes your address, photo ID and Social Security number. The bank will make sure you understand the terms of the joint account before having you both sign a document to create the account. You also can add another person to an existing bank account.
When to Open a Joint Bank Account
The most common time to open a joint bank account is shortly after marriage. It is also popular with long-term partners that have no intention of getting legally married. This allows the couple to share money as they navigate the rest of their lives together. There are also a few less common reasons for opening a joint bank account. For example, an adult child may open an account with their elderly parent to help monitor their finances. The same thing can also be done between a parent and a teenage child.
Benefits of Joint Bank Account
This is a popular way of handling finances because it offers several great benefits. According to the experts at SoFI, “One of the biggest benefits of opening a joint bank account with your wife is the added financial clarity. Both partners can see exactly how much money they have before making financial decisions. This prevents one person from controlling the money while keeping their partner out of the loop.”
The other main benefit of joint bank accounts is the convenience. All of your bills can be paid directly out of the same account. It is easier to manage your finances every month when you do not have to determine what account to use to pay each bill. You will also be able to avoid the courts accessing money after an emergency or unexpected death.
Opening a joint account with your partner is very simple. If you are going to spend your lives together, it only makes sense to share your money. All these benefits can be yours if you bank with SoFI Invest (SoFi Bank).