Joint accounts are deposit accounts in which two or more people have rights over the same account. This includes the right for all account holders to deposit, withdraw or deal with the funds in the account, no matter who puts the money into the account.
How does a joint account work?
As a joint account holder, you share equal access to the account and responsibility for all the transactions made through the account. In most cases, the other account holder can make transactions without your consent.
Why set up a joint bank account?
There are many reasons to open a joint account: one common use is for couples to pay household bills or deal with other shared expenses. In some cases, like health conditions or mobility issues, joint accounts may be considered as an option for someone to get assistance from family members or friends to pay bills and manage their finances.
Sometimes opening a joint bank account with a child is a good way to keep track of spending as they learn how to manage their money. Then when they are an adult, they can take over the account by themselves.
Consider all your options
Even though a joint bank account may seem like a convenient way to help manage your finances, there are many risks involved. Carefully consider all the risks and get information about all the options available to you before making any decisions. Joint bank accounts are not the only financial planning tools available.
If you become incapable of managing your own finances and property, and you don’t have a joint bank account set up, laws are in place which allow someone else to get legal authority to manage your finances for you.