What You Need to Know About Joint Bank Accounts
Thinking about getting a joint bank account with your partner?
Let us give you a quick guide.
What is a joint bank account?
A joint bank account is shared by two people, both of whom can deposit into and withdraw money.
How do joint accounts work?
Joint accounts work similarly to any other bank account. The primary difference is that the money in joint accounts belongs to both owners.
Do you have to be married to open a joint account?
No. The other party can be your romantic partner, business partner, housemate, family member, or anyone you handle financial matters with and want to share finances with. The key is for you to trust this other person before opening up a joint account with them.
Couples commonly use joint accounts for paying bills, saving for a vacation or a larger purchase, such as for buying a house or a car. Other common uses include business partners who cover expenses and payroll together, or housemates sharing rent.
Types of joint accounts?
There are two ways to open up a joint account.
- Transaction account: to make any transactions through this account, both parties have to sign and approve. This is to bring an additional layer of security to the account.
- Savings account: this account is also called ‘either to sign’ because one party can withdraw funds at any time without the permission of the other.