June 15, 2022
What to Consider Before Opening a Joint Checking Account
Consider the pros and cons of joint checking accounts before opening one.
Merging a checking account with your partner, teenager or other close relative is an important life choice that will impact your finances for years to come. Consider the pros and cons of creating a joint checking account and learn if it is right for you.
What is a joint bank account?
A joint bank account is a checking or savings account that shares funds between two people. Both people will receive a debit card and checkbook and have access to withdraw and deposit funds. To close a joint account, both account holders must request the closure and then transfer the funds to their accounts.
Benefits of having a joint bank account
Being on the same page about finances is important in a long-term relationship, especially if you share household expenses. A joint bank account is a useful way to streamline paying off bills and combine income between partners. A joint checking account can make finances more transparent for a couple and increase budgeting efficiency.
Sharing a joint bank account with your teenager
Opening a joint account to share with your teen can have many benefits. A joint account can be a helpful tool to teach a young adult about personal finance and budgeting before they open their own bank account. Teens can experiment with financial freedom with a debit card while allowing you to track their spending.
Drawbacks of having a joint bank account
Whether a couple is married, dating, or engaged, they do not necessarily need to share their finances through a bank account. Some couples choose to maintain separate accounts. However, a joint bank account does have many benefits while a couple is together but can also cause conflict if a relationship ends and the funds must be divided. However, a shared account can also be abused to control the financial freedom of a partner; it is important to be cautious before putting all of your funds in one place. To avoid this, a couple’s joint account can be devoted to smaller savings goals or small household expenses.
Citizens First Bank has flexible banking options that can fit your needs. Our team of banking professionals is here to advise you on your new checking or savings account. Our new online account opening service is a safe and easy way to open an account without leaving your home. Visit our personal banking page to learn which bank account is right for you.
