Whether you’re a newlywed, married couple, or long-term partners, one of the biggest questions people often ask is if they should have a joint bank account with their significant other. Money can be a touchy subject, especially in relationships, but it’s necessary to ensure you’re on the same page. Money is the number one subject couples fight about, and it’s the second-leading cause of divorce. Every couple’s situation is different, but below are a few points to contemplate if you’re on the fence about opening a joint bank account.
Why open a joint bank account for shared expenses?
Joint accounts help couples manage money effectively when their funds are in one place, especially for shared expenses like a mortgage, rent, or utilities. It also makes sense to have a shared savings account if you’re saving for a common goal, like a down payment on a house or a vacation.
Joint accounts also promote trust and shared decision-making. Spending and account activity can be viewed by both parties, plus you’re working together to budget your money and make decisions about your finances.
In addition, each account holder is federally insured by the NCUA (or FDIC outside of credit unions) for $250,000—a total of $500,000 if there are two account owners and no other beneficiaries. This allows you to maximize your NCUA insurance. For example, if you have an individual CD in addition to a joint checking account, your CD is still entitled to $250,000 in NCUA insurance—meaning all of your deposits are insured up to $750,000.
What to consider before opening a shared account
While a joint account may sound right for you and a partner, some serious (and maybe not-so-fun) conversations must happen before you open that account.
Spending habits
A joint account may not be the best choice if you have drastically different spending habits. If one person is a spender and the other is a saver, it could potentially lead to conflict, making separate bank accounts or joint checking accounts for bills a practical solution. It’s also important to know what your partner finds important financially. Some people prefer to splurge on experiences, like concerts or trips, while others may prefer to invest in their retirement fund. In that case, you may consider opening a joint account for bills only and have individual accounts for your “fun” money.
Communication
In addition to considering each other’s spending habits, you should also evaluate how you communicate. Communication is important in any relationship, but especially when it comes to joint finances. Before opening a shared account, it’s important to have serious conversations, like how the money will be used, preferences for communicating about big purchases, and setting budgets. Consider agreeing to an amount you can spend without consulting the other person (still keep your spending in check, though). You may also want to commit to regular check-ins about the account to ensure you’re still on the same page, and to make any necessary adjustments.
Conflict management
Unfortunately, you may still encounter conflict even with regular check-ins. Use conflicts as an opportunity for growth instead of viewing them as a catastrophe. If you feel like you or a partner have made a financial mistake, have a conversation about what lead to the decision. Readjust your budget if necessary, and reaffirm your financial goals. And remember to approach each other with empathy and understanding.
Past debts
Before committing to shared finances, it’s also important to discuss past debt. If you have a joint account with rights of survivorship (which is common), then the responsibility of the account is placed on one partner if the co-owner passes away. Your account could be seized for that debt, depending on where you live. With separate bank accounts, you can ensure the more financially responsible partner is protected if debt collectors come knocking on your door.
When joint accounts don’t make sense
A joint account may not be the best choice if you have drastically different spending habits or different financial priorities. A shared account is also not ideal if one partner has significant debt. Lastly, if one partner is paying alimony or child support, separate accounts may be best to keep track of those payments.
How to open a joint checking or savings account
Opening a joint account is easy. You can open a joint checking account online or in person at your nearest Georgia’s Own branch. You’ll need your and your partner’s Social Security number, birthdate, mailing address, and ID, plus how you’ll fund the account.
Pros and cons of shared accounts |
|
|---|---|
| Pros | Cons |
| Reduces the hassle of paying bills when your funds are in one place | You could potentially be responsible for a partner’s debt |
| Allows you to save toward a goal together | Less privacy surrounding your spending |
| Promotes trust and shared decision-making | Both of your spending needs to be accounted for |
| Each account holder is NCUA insured up to $250,000—a maximum of $500,000 for two account holders | |
Key takeaways:
- Joint accounts can promote communication, trust, and better decision-making.
- Joint accounts are great for things like saving for a common goal or paying communal bills.
- Skip sharing an account if you have conflicting spending habits, or if one partner has a lot of debt.
Whether or not to open a joint bank account is a decision that should be made on a case-by-case basis, depending on your circumstances and your relationship with your partner. If you’re considering opening a joint account, have an open and honest conversation about your spending habits, financial goals, and communication style.
Still on the fence? Consider speaking with a financial advisor or financial planner to get personalized advice. You can meet with a financial advisor from Georgia’s Own at no cost and no obligation to discuss your situation and determine what’s best for you.
I want to add my daughter to both of my existing checking and savings accounts. How can I do this?
Lynda — You can reach out to Member Services by calling 800.533.2062. Be sure to call from the phone number that’s listed on your account.
Hi
I was wondering if I could stop paper statements? I’ve looked this site over to try and do it myself and I lost. Look forward to your call.
Jennifer — Once you’re enrolled in online banking, you’ll be automatically signed up for eStatements and won’t receive paper statements. To enroll in online banking, you can click the “Login” button in the top-right corner on our website, then click “Register.”