When you have a joint account you may find yourself feeling less stressed about money because you pay for everything together.
Setting up a joint account with your partner could be the perfect solution to your banking needs. There is also a huge level of trust involved because two people are coming together to share their finances. For this reason it is a big decision for both parties.
Like all big decisions it is important to educate yourself on the pros and cons before you commit to setting up a joint account.
- One of the biggest benefits of a joint account is that it might just make your banking a lot easier. Having everything in one place means that you only have one set of bank statements and one account to manage as a couple.
- This kind of banking means that both parties are responsible for the direct debits that come from that account. This requires both parties being financially responsible for ensuring the funds are there. This can be a good thing because it might encourage both people to take their finances more seriously.
- Setting up a joint bank account involves going to the bank together with proof of identification. For many people this feels like a very "adult" experience and indeed it is. It can be a positive experience together and perhaps this is the first of many big life decisions together.
- You can make a savings plan when you have set up an account together. Within that account you might set up a monthly direct debit in the hopes that some day you will have a deposit to buy a house together.
- Both of your credit ratings will be affected by the other person's financial behaviour. This involves a huge level of trust between both parties and this can be a positive challenge in a relationship.
- A joint account can be tailor-made to satisfy your own personal needs. Some couples may want to have their own bank accounts for personal spending but a joint account for household direct debits and savings.
- When you have a joint account you may find yourself feeling less stressed about money because when you pay for everything together you don't necessarily have to keep track of who paid for what and when.
- Joint accounts give both parties the option of having a debit card to withdraw money from the account. This makes things convenient and easy as you can both use the joint account for daily spending without having to cross over.
