Sharing a meal is one thing, but sharing finances? That’s a big step. If you’re thinking about opening a joint bank account with someone, you probably have some questions. You may be considering a joint account as you plan your wedding or maybe as you move in together. Before you start merging your money with anyone else, consider these questions and whether a joint account makes sense for both of you and your financial goals.
What is a joint bank account?
A joint bank account is any account that’s shared by two or more people. Typically, you might open one with a spouse or partner, but that’s not a necessity. Other types of joint accounts are generally referred to as survivorship accounts, because they map out how funds should be allocated in the event of the owner’s death. These kinds of joint accounts are most common in estate planning.
Joint accounts can make it easier to manage debt, bill payments and other shared expenses.
How do joint bank accounts work?
Any joint account essentially works the same as an individual account — just with two or more owners. If you have a joint checking account, you can:
Deposit funds
Make debit payments
Write checks (if that’s your style)
Do anything else you would be able to do with your own account
The only difference, functionally, is that you and your account co-owner(s) have equal access to the account, so you’re both in control of the funds in the account.
Who can you open a joint bank account with?
You can open a joint bank account with just about anyone. You don’t have to be married or partnered to open a joint account. Each co-owner just has to be 18 or older. Business partners can decide to open an account together. Even close friends might find it practical to have a joint account — for instance, if they’re roommates and share utilities.
If you’re looking for everyday money management with a partner or spouse, you might find that having both joint checking and savings accounts is the right fit for you. An Ally Bank Spending Account can help you track your regular finances together, making it easier to manage recurring household bills and expenses. With buckets in Ally Bank’s Savings Account, you can share savings goals and track your progress together, holding each other accountable to reach your goals.
Learn more: Checking and savings accounts at Ally Bank can help you save while you spend
The main takeaway is that you should fully trust the person or people you’re considering opening a joint account with because you’ll have equal access to the funds.
What are the pros and cons of a joint bank account?
Having a joint account offers plenty of benefits, but sharing your money can present challenges as well. To determine the right fit for your financial needs, consider:
Pros | Cons or considerations |
|---|---|
Easier to track and manage your money in one place | Lack of privacy — others can see your spending activity |
Potential for increased FDIC coverage up to the maximum allowed by law | All owners share liability over debts and legal issues |
Save faster together by earning more interest | Could cause conflicts over money management |
Who owns the money in a joint bank account?
All owners own the money in the account. Each of the owners of a joint savings account can view balances, contribute money or withdraw funds. For instance, in a checking account, all owners can use the account to make purchases and payments.
How do you open a joint bank account?
At Ally Bank, you can open a joint account online with a few clicks and some personal information provided by each account holder. You can open a new account together, or you can add an owner to an existing account.
Read more: A step-by-step checklist to switch bank accounts
Opening a joint account at Ally Bank
You can have multiple owners with any of our accounts at Ally Bank. And just like with your individual account, all owners can easily access the accounts online or through the mobile app at their convenience with all the features and funds at their fingertips.Here are two ways you can open a joint account at Ally Bank:
Open a new joint account: You can add owners during the opening process — just select “Joint” when choosing your account type and follow the prompts.
Add an owner to an existing account: You’ll need to submit an Additional Account Owner Application, which you can find in the mobile app at Menu > Forms > General > Add an Additional Owner. Instructions to submit the form are included at the top of the document.
Is a joint bank account right for you?
What you do with your money is a very personal decision. Gone are the days when couples were expected to combine their finances. It’s about finding the right fit for you. If you like the convenience of pooling your money for shared expenses, go for it. If you’d rather maintain financial independence, that’s OK, too. An open, honest discussion will keep you both on the same page, whether or not your money is in the same account.
