How to Open a Joint Bank Account With Your Partner

Whether you’re dating, engaged or married, if you’re in a committed relationship, figuring out the best way to handle your finances is an essential conversation to have. Since money is a common cause of arguments between partners, to avoid conflict and build trust in your union, it’s pivotal that the two of you set parameters that clearly define how you’ll manage your funds. While some duos opt to maintain separate accounts, others decide to open a joint bank account: an account with two or more owners who have equal access to it. 

Starting a shared account is a practical, beneficial option if both you and your significant other have the same saving and spending habits. With compatible money-management styles, a joint account will make the process of navigating your shared expenses, such as rent and utilities, convenient and effortless. If one of you is more frivolous with budgeting, while the other is more conscientious, merging your money will probably lead to many tense disagreements, so a joint bank account might not be the best way forward.

If fusing your finances seems like an enticing option that suits the nature of your relationship, we chatted with Kate Dorman, a certified financial therapist and the owner of Sound Financial Therapy LLC, about opening a joint bank account. Read on to access our complete guide.

What Is a Joint Bank Account?

A joint bank account is a checking or savings account that two or more people own and operate. Each account holder has equal access to the account, meaning they can make deposits or withdrawals without needing another owner’s consent. Other than the differences in ownership, joint bank accounts operate just like an individual bank account, wherein you can deposit or withdraw money, write checks, and obtain a credit card, Dorman explains. Since this type of account allows multiple people to manage shared expenses, it’s a popular option for couples, especially betrothed duos.

Is a Joint Bank Account Right for Your Relationship?

In short, it depends on the couple, the nature of their relationship, their outlook on finances, and their goals. “Joint bank accounts are not prescriptive, meaning that not all couples need to or should have joint bank accounts,” Dorman points out. If you and your partner have a trusting relationship and are on the same page about finances, opening up a joint bank account can be practical and helpful: With a shared account, you can more easily manage household expenses and set aside cash for the future. 

For those in a relationship where each partner has different spending and saving habits (like one person is more frugal, while the other has trouble budgeting), a joint bank account might cause conflict in your partnership. In this case, having separate bank accounts may be more worthwhile. If you’re still unsure, you can always try one out and shift gears if it doesn’t end up working.

No matter where you’re coming from, before making any decisions, Dorman encourages you to have an ongoing conversation with your partner, in which you discuss your financial habits, the intention of a shared account, and any expectations if you were to open one. By addressing these elements, you’ll be able to discern whether a joint bank account is right for you. 

The Pros of Opening a Joint Bank Account With Your Partner

Still unsure whether your relationship would benefit from opening a joint bank account? Below, we’ve outlined some of the pros.

Simplifies Managing Finances

For those who live together, opening a joint bank account can help you more easily manage your shared expenses, such as rent, utilities, and groceries. “Instead of Venmo-ing or Zelle-ing money back and forth for day-to-day expenses, couples both use money from the joint account,” Dorman explains. You can also use the account to plan for the future, like saving for your dream vacation or a down payment on a new home.

Provides Convenience

With a joint bank account, you can add money, withdraw a certain amount, or simply check the balance without needing your partner’s permission, which provides ease of access and convenience. A shared account also makes paying bills and tracking expenses in your relationship more seamless.

Offers More Insurance Coverage

Since the Federal Deposit Insurance Corporation (FDIC) insures bank accounts up to $250,000 per person, opening a joint bank account with two owners will double that coverage, according to Dorman.

Encourages Transparency

Sharing an account with your partner, where both people can access the funds, encourages transparency in your relationship and builds trust. “Couples using a joint bank account are working with the same information,” Dorman says. “Both are aware of how much money is coming in and going out as a household.”

The Cons of Opening a Joint Bank Account With Your Partner

While opening a joint bank account has numerous benefits, there are also a few drawbacks to keep in mind—which may affect your decision.

Comes With Potential for Misuse

Since every owner has unlimited and unrestricted access to a joint account, one person in your relationship could mismanage or misuse the funds—without the other’s awareness or permission. “Someone may be contributing less but spending more,” Dorman says as an example. If someone is more careless with their financial habits, a shared account will probably lead to arguments, which can threaten a partnership.

Minimizes Privacy

On that same note, because you can see your partner’s transactions, and vice versa, you’ll have less privacy. “Think about if you want to surprise your partner with a gift,” Dorman poses. “You may want individual accounts in addition to a joint account for this reason.”

Entails Joint Responsibility

By pooling your finances, you and your significant other will both be held accountable if either person goes into debt. Even if your partner is the one who owes money to a creditor, you’ll be responsible for the fee, too.

How to Open a Joint Bank Account

The process of opening a joint bank account is relatively straightforward and similar to that of an individual bank account. You can either complete the task online or in person at a bank or credit union. Keep in mind, however, that not every financial institution provides the option to start a shared account, so be sure to double-check with the entity before proceeding.

Figure Out the Logistics

Before you actually open the account, you’ll need to cover the logistics. First and foremost, decide which type of account you’re going to open (a savings account or a checking account) and where you’re going to open it (a bank or a credit union). Dorman recommends choosing an entity that offers a high-yield savings account, so you’ll receive a higher interest rate on your deposits.

Provide the Necessary Information

After determining the location, you’ll need to gather and present key information about each account owner to verify your identities. Be sure to accumulate the following documentation for each partner: your government-issued photo ID, full name, date of birth, phone number, and social security number. Some banks also require proof of your mailing address, Dorman notes.

Complete the Application

Once you’ve compiled all of the relevant information, you’re ready to start the application. If you and your significant other prefer the convenience of the internet, fill out the form on the bank’s website. For those who would rather visit the branch in person, both account owners will need to be present. Whether you choose to complete the process online or at the bank or credit union, select the “joint account” option before providing your personal information. Then, review and sign the documents and read over the terms and conditions.

When to Open a Joint Bank Account

You can open a joint bank account at any point in your relationship—there isn’t a “right” time; it’s just a matter of what works for you. “Opening a joint bank account may be right for some couples before they are married, and for other couples, they may never be right,” Dorman admits. Most couples who choose this route, though, combine their finances after they tie the knot and start their married lives together. 

Mistakes Couples Make With Joint Bank Accounts

If you’ve chosen to open a joint bank account with your partner, there are possible mistakes you might make.

Failing to Set Expectations

Problems arise when couples fail to specify how they intend to use their shared finances. Before making any transactions, Dorman advises setting boundaries on what you can and can’t buy (like household items, but not personal splurges). Then, she recommends setting a spending limit, or the most amount of money you can spend without needing to consult your partner.

Neglecting an Ongoing Conversation

After some couples open their combined account, they end the discussion around joint spending—which is a mistake. “Failing to continue the conversation can lead to future financial conflict,” Dorman points out. Instead, make it a priority to regularly chat about your financial expectations and goals.

Forgetting to Constantly Check the Account

It’s important to continuously check the joint bank account. That way, both parties can be aware of the transactions and the account balance and can quickly take action when funds start running low. Plus, this practice will alleviate arguments. “If only one person is regularly reviewing the account, this can lead to financial conflict, as well as resentment,” Dorman shares.

How to Close a Joint Bank Account

If, for whatever reason, you need to close your joint bank account, you can terminate it at any time (as long as both owners agree and the account balance is at zero). Banks have different rules on who can close the account—some allow one account holder, while others require both—so check with your bank first.

Cancel Automatic Payments

Before closing the joint account, remember to cancel any automatic payments, such as subscriptions, linked to the account. That way, you won’t be charged in the future.

Determine What to Do With the Funds

Next, you’ll need to decide with your partner what you’ll do with the remaining funds in the account. Are you going to transfer it to another bank? Will you split the costs?

Withdraw the Remaining Funds

After reaching a decision, you’ll need to withdraw all of the money in the shared account. Then, based on your agreement, you’ll split the money accordingly.

Close the Account

Once there aren’t any funds left in your joint account, contact your bank to start the closure process. Depending on the branch, you may need to complete a form online, talk to a representative on the phone, or visit the entity. Regardless of the formality, you’ll likely need to supply written permission from all account holders.

Alternatives to a Joint Bank Account

A joint bank account isn’t for everyone. If merging your finances and storing them in one place isn't convenient for your relationship, there are other alternatives to consider.

Split Your Expenses Across Separate Accounts

With this alternative, you and your partner will maintain your individual accounts but split your expenses. The two of you will still chip in to cover your portion of the joint bill, but you’ll have the autonomy to make your own financial decisions, without needing permission first.

Get a Joint Credit Card

Another possibility is keeping your individual accounts for your own personal transactions and covering shared expenses with a joint credit card. Before choosing this method, though, you’ll need to agree on your payment strategy, like the amount of money and the type of merchandise you can charge.

Link Individual Accounts to a Joint Account

If the idea of a joint bank account sounds appealing—but not enough to completely forgo your financial independence—consider linking your separate accounts to a joint one. With this option, you can pay bills and contribute savings while maintaining control over your own account.