Why Opening a Joint Checking Account Is Smart
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Even the closest couples can be nervous about opening a joint checking account together.
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 and pool as much as they can into their joint savings account because having more money in the account means larger total savings as you accumulate more interest.
In selecting an account, consider the account’s co-owners, their habits and their previous banking history.
This will help ensure that you find the right joint checking account for your needs.
A joint checking account was best for us. Much easier.
That’s what we found is best for us too Michelle. Easier to keep one another in the loop.
My wife and I have a joint checking account, but we both still have our individual checking accounts as well. Those contain our personal “play” money. This way, if something were to happen to our marriage, we would only have to divvy up the money in the joint account.
We have separate account as well for ‘play’ money. It makes it easy to surprise one another with gifts 🙂
We’ve had a joint checking account from when we moved in together! The only thing is I need to figure out how to stop seeing what I’ve bought her for Christmas!
Stash you cash in a separate account or use the envelope method!
Do you mean just put it in an envelope? Pretty sure she’d sniff that one out! haha
Can you keep the money in your wallet or is it a huge purchase? Perhaps you can go with a friend or family member to buy a gift, put it on their cards, and immediately hand them the cash to cover the gift.
All will be revealed shortly 😉