If you are thinking about opening a new account, you may be wondering whether it is a good idea to open a joint savings account or whether you should open one on your own.
You need to look at both sides of the issue so that you can make an informed decision, one way or the other.
Joint savings account
Here are some of the reasons why you should open a joint savings account and what the benefits are.
1. Safety net
If anything should ever happen to you such as a bad accident or illness, it would be nice to have somebody available who has access to your account. If there is nobody that can access your account, it can be very legally frustrating to go through the red tape to get access granted. You may feel more relaxed if you know that another person can access the money in the account if something happens to you.
If you are living in a relationship with another person and need to establish a partnership, this can be the way to do it. If at any time you need to show proof that you are involved in a domestic partnership, you can show your joint savings account documentation and it will be accepted in most cases.
Savings Accounts Comparison
3. Establishing equality
Some partnerships in marriages have one partner staying at home while the other works or one partner may make significantly more money than the other. By opening a joint savings account, the partner that is earning more is showing the other that they are equal because both have access to the same savings account.
It is important that parents open up a savings account for their children when they are young. The cost of education continues to rise every year and that may be the only way to fund a proper education in the years to come. This will have to be opened as a joint savings account for young children since many banks require the parent's signature for children at an early age. This also gives you some control over the money as the children get older.
Here are some of the cons of opening a joint savings account.
1. Trust factor
If you're in a relationship where you don't completely trust your spouse or partner, it may be a good idea to avoid getting an account together. Trust is an important part of financial management. You work hard for your money and you need to make sure that you feel safe about it at all times.
If you or your partner have a large amount of debt, this can be a concern. If debt collector starts to come after the funds, they may be able to access the account even though there is another name on it. If debts are an issue, you should talk to a lawyer first before opening an account with someone that a large amount of money owing.
A joint savings account is a great idea in most cases. If you don't have a problem with trust or debts, opening one of these savings accounts will probably be a good idea for you. Discuss it with your partner and then open one soon to let the savings begin.