Sharing an account can be a big decision for people, specifically those who are recently married — congratulations! Different people may have been advising towards or away from opening a joint account with a spouse, so we have decided to break it down to help make your decision easier.
What is a Joint Account?
A joint account is an account shared by two or more people who are most usually relatives. Anyone whose name is on the account can make transactions from the joint account without needing approval from the other people who share the account. You can share an account with a close relative, spouse, business partner, or someone you trust greatly.
Most common joint accounts are long-term accounts, but you can also establish a shared account for a shorter time period.
A joint or shared account may be survivorship accounts or convenience accounts. Convenience accounts are joint accounts created for the purpose of convenience! Survivorship accounts include the proper structure for you to continue to use the funds in the account if the other person on the joint account is deceased.
Joint Account Pros
Joint accounts are most often created out of the convenience of a shared account. A joint account makes it easier for you to track expenses with another person and make sure nothing gets lost.
Joint accounts are great for couples who might be about to buy a home or a property. When you have a joint account, you have a better chance of a good loan or credit card deal. When you combine your finances with the other account holder there are better credit options, which may benefit you if your credit score needs a boost.
If your spouse passes away, a joint account allows you to continue to access your financial assets without dealing with probate and other legal issues that can tie up funds of a deceased spouse.
Joint Account Cons
Though having a joint account can add convenience to your daily life, the shared account may also make things more complicated. Once you combine finances with a spouse or business partner in a joint account, it will get tougher to track your own money and expenses in comparison to theirs. There is also no privacy involved in any transaction. If you buy a present as a surprise for the other person, he or she will find out about the transaction before you can give the gift!
If you and your spouse end up getting divorced at some point, sharing an account can be messy. One person whose name is on the account can drain the funds before legal action can be taken by the other party. This is just something to keep in mind when you are deciding if you want to open a joint account with someone.
Joint Accounts with Great Basin Federal Credit Union
Stop into a branch of Great Basin Federal Credit Union in Reno to talk with someone about opening a joint account. We can walk you through the little details to put any worries to rest and help you decide if a joint account is right for you.
Learn more about bank accounts with Great Basin Federal Credit Union today!Share: