Sharing a good meal with your loved one is a different story. But when it comes to finances, it is a whole new story altogether. A savings account is the most preferred financial instrument today. All your hard-earned cash goes into your account, with a high-interest rate as a reward for the same. But if you are considering opening an account with your partner/friend/family member, there are certain things that you should be aware of.
Firstly, what is a joint savings account?
More than one person can manage a joint savings account. Although joint bank account involves just 2 people, most of the banks today allow a maximum 4 account holders to operate the account.
What are the aspects to consider before you open a savings account jointly?
- Money management: The best part about having a joint account is that any of you can view the balance statements, withdraw cash or contribute to the account. This way you can streamline your finances in a better way. So, if you are newly married and are looking to purchase a new home or venture for a vacation or purchase home equipment, then a joint account comes handy. Moreover, you can use the joint account for your home chores such as utility bill payment, manage debt, etc.
- Not just meant for spouses: The stigma that joint savings account are only meant for spouses is false. Some siblings might want to open an account for their ailing parents or roommates who stay in a rented apartment might want to run an account to meet their day-to-day expenses. However, you have to remember that all these members have access to the account and money in it. To put it straightforwardly, they can withdraw or close the account without consulting you. So, it is better to open an account with someone you trust.
- Ground rules: Ensure to open a savings account jointly with some rules in place, like:
- The reason to open a joint account
- Contribution from each person
- Communication is the key here. Each of you should know when you will withdraw or add money into the account.
Honest dialogue is a must when you opt for a joint savings account.
- Online: Today several banks prefer the online mode than the conventional methods. You can open a savings account jointly in just a few clicks. You and the co-owner can operate the account at your convenience, be it home or work. Also, online facilities come with lesser overhead costs than traditional banking.
For better finance management, go for a joint savings account right away!