Two Become One: How To Combine Accounts

13 Mar Two Become One: How To Combine Accounts

Have you been thinking of opening a joint bank account to combine funds with your child, business partner or significant other? Before two become one, look at these tips to make sure your process runs smoothly.

What is a Joint Account?

A joint bank account is shared with two or more people, where both individuals have an equal right to deposit or withdraw funds from the account.  They are convenient for couples, business partners and parents with children away at college. They are beneficial for paying mortgage payments, rent, utilities and groceries.

How is a Joint Account Different from a Personal Account?

With your personal account, you are the only person that has access to your money. Your partner, or anyone else for that matter, cannot withdraw from your account. This freedom provides you with more control over your expenses.

How to Open a Joint Account

The convenient thing about joint accounts are their similarities with your standard checking and saving accounts. When you are opening your joint account, make sure you and your financial partner are on the same page and communicating before you head to the bank. Discuss who is going to be in charge of the debit card, if you’ll both have a debit card and what expenses will be paid for with the bank account. Your joint account shouldn’t be your only account. You and your partner should both maintain your own separate accounts.

Knowing What to Ask

When opening the account, make sure you have all your questions answered. Common questions during this process are how much control one person may have over the other. For example, ask your bank if there is a policy in place that prohibits the withdraw of a certain amount of money without the other party’s permission. This would be important to know if you are sharing an account with your child and want to keep them from overspending.

Are you looking to combine your funds by opening a joint account? Contact us today!