Whether you’re a newlywed or have been married for 20 years, thinking about combining bank accounts can be a difficult decision. Recent studies from TD Bank show that while couples 55 and older use joint accounts to pay their taxes, younger couples use it for general savings or for larger payments like cars and mortgages. Not sure whether you and your partner should have one? Here are a few pros and cons about joint bank accounts.
Pro: Save Time & Effort
Both you and your partner can save time by using one bank account and one login. It’ll also cut down on the amount of time you need to spend in your checkbook. No more tracking separate logins or going to two different sites to manage your savings!
Con: Legal Affairs
Things can get complicated with joint accounts if something happens to your partner or your relationship. Laws on account custody can vary based on your location.
Pro: Lower Account Fees
With joint bank accounts, chances are you’ll be well over the minimum balance needed before an overdrawn fee is charged since your money is pooled. Having all of your money in one place will make it easier for you to meet any account requirements.
Con: Knowledge of Purchases
With multiple people on the same account, communication between you and your partner will be important. If he or she does not tell you about a significant purchase, your card could end up getting declined. Also, understand that purchases made could be seen by your spouse, potentially revealing gifts to your significant other.