Whether you want to open a checking account with your spouse, friend, parent, child or business partner, the concept of both parties having equal access to the funds can be a little scary. However, having a joint checking account has its benefits.
As long as you trust the person you are opening an online checking account with, can comfortably communicate with them throughout the joint checking relationship, there are advantages for both sides.
Joint Checking is Convenient
From depositing and withdrawing money to paying bills, a joint checking account simplifies money management.
With a single pool of money to consider, both parties have faster and easier access to their funds. For example, if one person on the account travels a lot, the other still has access to the joint checking account when the first person is out of town.
If you’re the one traveling, a joint online checking account is easy to monitor with mobile banking applications.
Budgeting is Easier
Most people open a checking account to make it easier to pay bills, but opening a joint checking account also makes budgeting easier.
When both parties are monitoring a single account it’s easier to track credits and debits. Because of this visibility, it’s easy for co-owners to know how much is left to pay bills.
No one wants to think about death, but it’s important to note that should one of the partners in a joint checking account pass on, the other party immediately obtains the rights to the money.
There are no probate court holdups or drawn out legal proceedings – the funds simply stay in the surviving party’s name.
Choosing the Right Joint Checking Account for Your Needs
Your needs may change depending on the parties involved in opening the joint checking account.
Some people opt to open an interest checking account together because having more money in the account means a larger total savings as you accumlate more interest.
If you are a parent who wants to teach your child about money management, a student checking account may be the right fit for you.
In selecting an account, consider the account’s co-owners, their habits and their previous banking history.