The Benefits of Joint Bank Accounts

Joint accounts allow multiple persons to share the benefits and responsibilities tied to the same banking account.

14:10 15 October 2013

Joint accounts are special banking accounts that can be shared by two or more account holders in the same time. These accounts are a good solution in particular for people who live together or share the same financial interests, such as paying bills or mutual investments.

Both persons have the same benefits and responsibilities, and can make transactions or deposits in the same time. This is why you should only open a joint account with a very trustworthy person.

The two persons can choose to set a limit for the transactions made through this accounts, which means that any transaction made by one of them has to first be accepted by the other. Any misunderstandings between the two members can be mediated by the bank, but the account may be frozen in the process.

Here are the main benefits and responsibilities that the two members will have with a joint account:

A joint account is perfect for managing the daily household finances, such as paying bills or other recurrent payments;

Joint accounts allow two persons to combine their finances into a mutual deposit that can earn more monthly interest;

The joint account can be closed at any time if the members agree on it. Each member will be required to sign a standard form;

Minor disputes between the members of the joint account can be settled between themselves, without the bank intervening;

If one of the members of the joint account has been laid off and cannot continue to make deposits, they can use alternative methods to closing the account, such as an overdraft that would buy more time to find a new job.

It's important to remember that you should only open a joint account if the other member has the same interests as you.