Opening a joint savings account with your elderly parents can be a wise financial decision when it's mutually beneficial to you both. For your parents, it can mean you're able to help them take care of everyday expenses while they're out enjoying their golden years. And for you, it can mean the priceless peace of mind that comes knowing you're there to help make sure they protect more of the fruits of their lifelong labor, especially if health issues become a factor.
But before you go down the path of opening a joint savings account for the potential advantages it can bring, it's important to understand the other side of the coin as well - the risks. Anytime you're dealing with money, remember that there are potential tax issues to face. There's also the issue of how the account will work in the event one of the account owners dies.
If you're opening a joint savings account, you're essentially saying, "both of us own this money, and both of us have rights to it." As a result, you both have certain responsibilities as well. So when you're making that decision with elderly parents, you both would be well advised to consider how opening a joint savings account fits into both of your longer-term plans.
Perhaps a visit with a financial planning professional is in order. There are simply too many issues you may not have considered, and a professional can help you navigate them.
Either way, if opening a joint savings account makes sense for you, doing so with Ally Bank is just as easy as it is for an individual. It takes very little time, and you can open and fund your account with any amount. The fact that it's the Ally Bank Online Savings Account means the balance grows faster with daily interest compounding at a competitive rate. And you both can manage the account activity from the comfort of wherever you are, whenever you like. Moreover, if there's ever a need, help from live customer service is available 24/7 via email, webchat or phone at 877-247-ALLY (2559).