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You’re in love – when is the right time to say yes to a joint account?

Article (news)

Aneth Ng-Lim

<div><span class="fr-img-caption fr-fic fr-dib" style="width:498px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/joint savings.png" style="width:498px" class="fr-fic fr-dib" alt="You’re in love – when is the right time to say yes to a joint account?"/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Artwork generated using Microsoft Designer with Copilot using DALL-E 3</span> </span></span></span></div><p>For couples in love, it’s a natural thing to share – and I’m not just talking feelings. Couples lend clothes, jewelry even cars to one another, and soon enough, money.</p><p>While some choose to wait until after marriage to talk about money, pool finances and open a joint banking account, others do so before the wedding as their lives become more and more intertwined.</p><p>According to Patricia, when she and her boyfriend started taking vacations together, it made it easier to open a joint savings account and use it so they can save and spend for their trips. In Louie’s case, he and his fiancée waited until the wedding planning stage to do so, as a joint account made it easier to set a budget, track their spending, and pay for expenses.</p><p>If you’re considering taking this next serious step in your relationship, read on to learn the good, the bad, and the ugly of joint banking accounts.</p><div><a href="https://news.abs-cbn.com/business/2024/2/13/are-you-and-your-valentine-money-compatible-1441">Are you and your Valentine money-compatible?</a></div><div><strong>Just what is a joint account?</strong></div><p>A joint account can be a bank account or even a brokerage account where you have two or more individuals as owners. While most owners of joint accounts are couples, it can also be opened by relatives or business partners.</p><p>If it’s with a bank, you have the option to open a joint savings account, or a joint checking account. Once opened, a joint account allows all the parties named on the account, for example, Patricia and her boyfriend, to access its funds. Both of them have the right to make deposits, withdraw cash, sign checks, and make online payments.</p><p>Opening one is simple – both account holders who are 18 years of age and older just need to present their government-issued identification and other documents to confirm their identity and provide personal information to the bank.</p><div><ivs-player data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-spid="3001339" data-ivs-vid="2965562"></ivs-player></div><script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script><div><strong>The good of owning a joint account</strong></div><p>There are many benefits to owning a joint account depending on whether you are a couple, or a parent and his child, or run a business together. In this article, let’s just focus on the pluses for romantic couples.</p><p>Most bank accounts today require a minimum balance. Some can be hefty so if you open an account together, you only need to maintain the required balance for one account instead of two.</p><p>Banks have also required higher balances for deposits to earn interest. Again, with a joint account, your pooled deposits should have a better chance of meeting the higher balance to get interest.</p><p>Transparency is also an advantage. By being joint owners of the bank account, you can see who made deposits and how much, and who also withdrew cash and how much. If you have online banking access, you can track the coming in and going out of money at your convenience, any time of the day.</p><div><strong>The bad you need to watch out for</strong></div><p>The flip side to transparency is the lack of privacy. If you skipped a regular deposit, or made an unplanned spending, your partner will know. He or she may ask for an explanation, something that you may not want to give.</p><p>By owning the account together, both of you have control over the funds. If one tends to be the saver, and the other one the spender, things could get tricky. It’s natural for couples to fight over money, but how often and how serious the fights that come from managing your joint account will likely determine if you have a future.</p><p>As co-owners, you can both use the account for anything, including bill payments. If one partner tends to use/abuse this more, then the other will be at a clear disadvantage.</p><div><a href="https://news.abs-cbn.com/business/2024/2/7/5-ways-to-welcome-prosperity-this-lunar-new-year-1546">5 ways to welcome prosperity this Lunar New Year</a></div><div><strong>How to make sure things do not go ugly</strong></div><p>What happens if you break up? This is when things can go from bad to ugly. One could drain the joint account and leave the other broke – both financially and emotionally. </p><p>Because you both have access to the funds, nothing will stop the other from being able to withdraw all the money. So if you think the relationship is going sour, make sure you and your funds are protected by discussing what will happen to the account, or already taking steps to get your half. Note that once the account is closed, the bank cannot help the other party if all the money went to the other.</p><p>So before you say yes to a joint account, it’s good to have a clear idea of what you will be getting into. After doing your research, if you are still confident of your partner, then have the money talk and agree on the responsibilities for managing your pooled funds. This way, you can avoid any unnecessary problems and even use the experience to have a stronger relationship.</p><div><em>ABOUT THE AUTHOR</em></div><div><em>Aneth Ng-Lim returns to writing after more than two decades of working as a communications specialist in the government and the private sector. Her advocacy for financial inclusion and personal finance began when she served as head for Consumer Education during her stint at a multinational bank.</em></div>

<p>For couples in love, it’s a natural thing to share – and I’m not just talking feelings.</p>

For couples in love, it’s a natural thing to share – and I’m not just talking feelings.