A joint account, for better or for worse!

A joint account is like a personal account, the only difference being that two (or more) persons can access it to do transactions: Withdrawals, transfers, deposits, cheques, direct deposits and withdrawals, payments, etc. In addition to letting you rapidly accumulate money, joint accounts make managing joint expenses easier. Finally, a joint account allows two people to do what may, at times, be difficult to do alone-save.

But is a joint account always a good idea?

Only the two people involved can answer this. What precisely is the purpose of this account? Who will pay what? How much will each person deposit, and how often? How will transactions be done? What are your savings objectives? Those of your spouse?

Some couples choose to have joint accounts. They do not have personal accounts and channel all their income into a single account, from which each withdraws money according to his/her needs. But if trouble brews, one of the partners may develop some resentment towards the other who made less deposits-money is one of the most common sources of disagreement between people.

A joint account can be a useful tool but, in case of doubt, it may be better to abstain. Many couples choose to have separate accounts, and they are just as happy.

What happens when one of the account holders dies?