So the time has come to open a joint bank account with your partner and you have no idea where to start. Opening a joint bank account is a big step in any relationship and there are many things to consider before you take the plunge. Here is everything you need to know about merging your finances with your partner.
Benefits of a Having a Joint Bank Account
Opening a joint bank account can have many benefits. It can help you with budgeting for the family and you will more than likely save money from monthly fees incurred from holding multiple accounts.
It can also help you both strive to achieve the financial goals you have set as a couple. It is vital that you have open communication about your budget and expenditure, or a joint account may work against you. Make sure you have set clear targets and goals together, and discuss what you expect of one another when it comes to spending.
Best Account for You
There are many joint bank account products available in the market nowadays. Discuss with your partner what you require from a joint account, what your expectations are and what will work best for you as a family.
Remember to take the time to shop around at various financial institutions including credit unions. Just because you have ‘always’ banked with your current bank doesn’t mean they will have the best product available to suit your financial needs. Research financial products online and compare them to your list of requirements. Taking the time to conduct this research will not only help you decide what account is best for you but it can also save you money.
Before you decide on any financial product, it is important to ask questions about how the account is set up before committing to it. There may be clauses such as a minimum monthly deposit or the account may require two signatures before you can withdrawal from a branch. Make sure you select a product to suit your individual needs.
If in Doubt
Before opening a joint account, make sure your trust your partner entirely. If you are being pushed into opening a joint account, consider the reasons behind their motive. Unfortunately, we hear all too often how loved ones are taken advantage of financially to support addictions such as gambling or drugs.
If you are opening a joint bank account purely for convenience and you don’t feel comfortable about merging your finances entirely, there may be other options for you. For example, you may like to consider opening a joint account where you both contribute funds to cover direct debits for household bills, and keep your regular income deposited into your personal account.
Top Tips for Opening a Joint Bank Account
- Make sure you trust your partner entirely
- Set clear savings targets and goals with your partner
- Shop around financial institutions
- Make sure your account is suited to meet your needs
- Ensure you and your family are protected financially should things go pear shaped
- Continue to communicate with your partner about the household budget
- Keep track of what you are both spending
Have you recently merged finances with your partner? What tips do you have when it comes to opening a joint bank account?