A joint bank account allows you and your spouse to receive payments, such as rewards, pensions, and salaries. It also allows a joint account holder to pay for things or withdraw cash with a debit card and review savings balances.
If you manage your money with your spouse, a joint bank account can make the process easy. It offers many daily banking conveniences for couples. Read on to discover the five main benefits.
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5 Benefits of a Joint Bank Account With Your Spouse
A joint account is useful for people who wish to share their money. However, here are five benefits for you and your spouse:
Easy to Manage Family’s Money
Joint accounts make paying bills and tracking household expenses easy since the co-owners can check their transactions and add funds to the account equally. As a black family, you can use the account to streamline bill payments by simply linking it to your online banking services.
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Encourage Collaborative Decision Making
This bank account type is useful for couples saving for a wedding ceremony, a down payment, or a shared future. It makes it easy for them to add money to the account and make withdrawals.
Having access to the family’s earnings makes everyone feel valued. It helps to enhance communication and encourage the two lovers to get involved in money decisions. Here are books on Amazon that help teach you how to have money talks in marriage.
A Potentially Bigger Account Balance
Since you run joint accounts with your spouse, they can have bigger minimum balances compared to personal accounts. This can help you earn higher interest rates or even avoid a late monthly fee.
More Federal Deposit Insurance Corporation (FDIC) Coverage
You have insurance coverage at credit unions insured by the National Credit Union Administration and at the bank insured by the FDIC up to $250,000 for a deposit, per insured bank. Since you and your spouse opened the account, each of you will get up to $250,000 in FDIC coverage, potentially raising your total coverage to $500,000.
Monitoring a Child’s Spending
If you have children who are leaving for college, you can create joint savings accounts with them. Joint checking accounts allow you to deposit money or review the bank statement to check the child’s spending habits. It can also help restrict the amount your child can withdraw from the ATM daily.
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How to Open a Joint Bank Account
Just like other account types, creating joint accounts is fairly straightforward. You can either choose the joint account option on the application or include a co-applicant after filling in your own details. You and your spouse must provide a valid government-issued ID like driver’s licenses, proof of address, and other additional information that may be required.
Additionally, the application also requires the personal information of you and your partner, including your full names, contact details, social security numbers, and date of birth. Not all credit unions or banks offer joint bank accounts.
So, ensure the bank you pick does so before applying for a bank account. A few banks in the United States where you can open the best joint bank accounts include:
- Ally bank
- Capital One Bank
- Sofi Bank
Several other banks with physical branches and online-only banks offer joint account packages. You just need to do your homework properly and find one that meets your needs.
The minimum direct deposit amount, stated interest rate and qualifying deposits are a few things to consider before picking a particular bank. You can also a financial expert recommendations if you’re unsure about the best bank to open a family joint bank account with.
Cons of a Joint Bank Account
A joint account can be a straightforward way to share money and manage living costs with your spouse, like utilities, rent, and even groceries. However, there are some possible cons:
A joint account can affect your credit score
Creating a joint bank account adds a financial link to the other account holder. This implies that creditors or companies will review both of your credit histories as part of any credit checks. If your spouse has a low credit score, it may reduce your chances of acceptance.
You could become responsible for your partner’s debt
You and your spouse can withdraw money or spend from the account whenever you like. But if your partner spends too much and borrows cash overdrafts, the bank might ask you to repay it.
Money issues are among the major reasons for broken homes. Creating a methodology that allows you and your spouse to get involved in your household finances is an excellent way to deal with this issue and introduce transparency in your family finances. Having a joint account can help you both get involved. To learn more about how to manage your household finances effectively check out these books on Amazon.
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