Joint Accounts and How They Work

There's no "I" in "we"

You know when your relationship is getting serious, right? Both of you start using ‘we’ more than ‘I’, you maybe even move in together, and there may even be the casual mention of a joint bank account or joint savings account.

A joint account is a symbol of commitment, Look, we believe in romance, but by sharing a joint account with your spouse or partner, it can be easier to keep track of what they’re up to. While joint accounts offer many advantages, it's essential for account holders to communicate effectively, set clear financial goals, and establish trust to maximise the benefits of sharing an account.

It's important to remember that you can combine your savings without combining your everyday accounts, or you can combine everyday banking without combining your savings, or combine both. You can also operate any of these with two signatures required to make a withdrawal.

How do joint accounts work?

Joint accounts are bank accounts that are opened and managed by two or more individuals. They can be a convenient way to manage money together, whether it's for household expenses, saving up for a vacation, or handling shared bills. Just remember, everyone's responsible for what happens in the account, so it's important to stay on the same page and communicate about how you're managing things.

Joint accounts can be:

• operated by either owner individually, allowing each person to make transactions independently,

• or they can be set up to require both owners' approval for certain transactions, ensuring that major decisions are made jointly and with mutual agreement.

What are the benefits of a joint bank account?

• Transparency and financial collaboration: Joint accounts promote transparency and open communication about finances between account holders. Both partners have visibility into the account's transactions and balances, making it easier to track expenses, savings, and shared financial goals. This collaborative approach can lead to better financial planning and decision-making as a team.
• Convenience and access: Joint accounts allow multiple individuals to access the account, whether it's for day-to-day spending, bill payments, or savings. With shared access through debit cards and online banking, managing shared expenses becomes more convenient. This accessibility simplifies money transfers and ensures that both partners have easy access to funds when needed.
• Legal protection and estate planning: In the unfortunate event of one partner's passing, a joint account provides the surviving account holder with immediate access to the funds without the need for a lengthy legal process or probate. This can offer a sense of security and financial stability during a difficult time. Joint accounts can also simplify estate planning by allowing one partner to designate the other as the primary beneficiary.

What are the drawbacks of a joint bank account?

• Financial disagreements and dishonesty: Joint accounts can sometimes lead to conflicts and disagreements between account holders, especially if they have different spending habits or financial priorities. If one partner is less responsible with money or fails to communicate about their financial decisions, it can breed mistrust and even dishonesty, as they may resort to opening separate accounts to hide their financial problems.

• Loss of independence and autonomy: Opening a joint account means that both partners share ownership and control over the funds in the account. If one partner is not fully onboard with this arrangement but agrees to it to maintain harmony in the relationship, they may feel a loss of financial independence. This can lead to resentment and issues within the partnership.

• Complexity in case of separation: When a relationship ends, dividing the assets held in a joint account can become a contentious issue. Both parties may feel entitled to the shared funds, and without mutual consent, it can be challenging to manage the separation of assets. This can lead to legal complications, disputes, and potentially result in a protracted legal battle.

To mitigate these drawbacks, it's crucial for partners considering a joint account to engage in open and honest communication, set clear financial expectations, and establish mutual trust. Additionally, it's wise to have a contingency plan in case the relationship ends, such as a clear agreement on how to divide the shared assets.

If this is all new territory for you, here are 4 easy steps to start talking finance with your partner.

A joint savings account – an ideal first step?

We get it – you might just not feel ready to go all in and combine every aspect of your personal finances with your partner, whatever your reason may be. If this is the case, you might like to consider opening a joint savings account together. A savings account is a great way to show commitment to a future together, by identifying a financial goal you want to achieve as a couple, and making joint contributions to a nominated account which rewards your good habits with high interest.

Steps to opening a joint account

Different banks and financial institutions will have their own individual process for opening a joint account, but, by and large, there are a few things you can expect.

• You and your partner will need to provide some details on yourself. This may involve things like names, dates of birth, address and contact details

• You’ll also be asked to provide some documentation so the bank is able to verify your identity

• Of course, you’ll need to elect what specific account product you and your partner would like to open

To see how easy it is to open a joint account with Greater Bank, head to our Everyday Accounts or Savings Accounts pages.

What documents do I need to set up a joint account?

Again, this will vary depending on the bank or financial institution you wish to open an account with, as banks require differing levels of identity verification according to their appetite for risk. Speaking generally, though, each bank will ask you to submit a number of documents until they are satisfied that they’ve been able to identify you successfully.

Some things you may wish to keep on hand when attempting to open a joint account include:

• Your passport

• Your driver’s licence

• Your Medicare card

To see what sort of documentation you’ll need handy to apply for a joint account with Greater Bank, you can view our FAQ page.

We're here to help

Ready to open a joint account? Our staff are here to help! Visit your nearest branch or call us at 13 13 86 to get started today! Alternatively, you can open a joint account easily online.

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