There are several benefits associated with joint bank accounts that cannot be found with other regular savings or checking accounts. As long as there is good communication and trust between joint bank account holders, family finances can be managed more easily.
Here’s a rundown on the benefits of opening a joint bank account.
Shared Bank Accounts Ease Family Budgeting
Income earners in a family can combine a certain amount of money from their salaries each month in a joint account for various purposes. Be sure of what the money is for – utility bills, school fees, rent or mortgage, car loans, etc – and agree to stick to that.
A couple may also want to set up a shared account solely for entertainment purposes such as a holiday during Christmas or huge social events. When all parties have clear goals and set aside a certain amount of money in specific joint accounts for those goals, family budgeting is more manageable.
Bill Payment is Easier with Joint Accounts
Couples who pool their income into a shared account can pay bills easily using that account. If the account holders have opted for the “either to sign” signatory option, either party can withdraw money or sign checks independently of each other. This is especially useful when one of the account holders is away from home for an extended period of time.
Senior citizens or disabled people may find having joint accounts with trusted relatives convenient too as the relatives can pay their bills or write their checks for them easily.
Reduced Bank Charges and Fees
If there is only joint bank account instead of multiple accounts, there is only one set of bank charges and fees to pay. It’s a good solution for low income families who rely heavily on their overdraft to pay for routine expenses. By putting all incomes in a common account, they can avoid excessive overdraft charges.
Avoid Probate Court Complications
One indisputable benefit of having a joint bank account is that it can help avoid probate court complications if one of the account holders dies. Instead of having the money going through the red tape of a probate court as it would be in the case of regular bank accounts, all the remaining balance of the joint account will automatically go to the surviving account holder. That’s why joint accounts are favored by many older people who have children or relatives they can trust completely.
While having a joint bank account can be risky, it offers a lot of convenience. It eases family budgeting and bill payments as well as reduces bank charges and fees. Additionally, a shared account can help avoid probate court complications if one of the account holders dies unexpectedly.