Are you thinking about getting a joint bank account? If you’re newly married, starting a business, or caring for an elderly parent, a shared bank account is a good idea that can help your financial future. But what are the advantages of joining forces with another person when it comes to finances?
Read on to learn about the 7 amazing benefits of a joint bank account!
1. You’ll Always Be Able to Access Your Money
One of the main advantages of a joint account is that you can access your money at all times. You won’t be in a situation where only one partner in the relationship has access — and the other one is cut off. You’ll always be able to use the account to check the status of deposits or cover big expenses like medical expenses or rent.
With two separate accounts, you may encounter scenarios where your account total is low but your partner’s is higher. This can be due to income or savings disparities. When you need to make a bigger payment for a joint purchase, it’s much easier if you have pooled your savings together.
2. You’ll Be Able to Set Saving Goals
When you’re newly married and hoping to achieve great things together, you can use a joint savings account to set goals. Whether it’s buying a house or taking an exotic trip, you can use a joint account to start building funds for these big items.
Set monthly goals so you know how much of your collective paychecks you want to reserve for your savings. You can even set up multiple accounts if you’re saving towards specific items or travel plans. And you’ll feel more energized as you watch the money grow in each account!
3. Benefits of a Joint Bank Account Include Staying Accountable to Each Other
Another benefit or going with a joint banking account? You’ll be able to keep tabs on each other’s spending. If you’re the tightwad but your partner likes to spend more freely, a joint account may be helpful to keep each other in line.
When you’re navigating through a relationship, money can be a divisive force. And when you’re coming from different financial backgrounds, you need to get a sense for how the other person handles money. That’s where a joint savings account makes a lot of sense.
You can look at deposits, get bank statements, and transfer funds easily when you have access to your accounts online. Farmers bank online offers an easy platform that can help you get the joint bank account you want.
4. You May Gain Access to Special Privileges
You’ll also get some special perks if you pool your financial resources. The FDIC will insure your money, which means you can feel comfortable putting it into an account together.
And because you will have more money since you’re joining forces, you may not need to pay monthly maintenance fees for the account. So you’ll save some money, too!
5. Bill Paying Will Be Easier
Do you need to make a monthly car loan payment or chip away at your mortgage? Then having a joint account will make your life easier. By putting your savings together, you can both access the account to pay bills in a timely manner.
One of you might be the primary bill payer in the relationship, but it’s always better for both partners to be able to make payments. If one person is sick or on a work trip, you don’t want to miss a payment and hurt your credit as a result. Plus you can set up direct payments for credit cards, loans, and other bills and then check the account to ensure that everything was processed.
6. Adult Children Can Assist Parents with Financial Decisions
As you grow older, you may find yourself in the position of handling your parents’ finances — or at least offering assistance. If you’re caring for an aging parent, you want to help them make the most responsible decisions possible. And sometimes having a joint banking account can make that process easier.
If you’re trying to assess whether your parents can afford retirement housing or go on a fun trip to the Carribbean, you’ll need to know how much money they have. And if your parents lack financial knowledge or have physical limitations, they’ll benefit from your help. One of the biggest advantages of a joint account is that you can give back to your parents by working with them to make good financial decisions.
7. You Can Use a Joint Banking Account for Your Business
If you’re a small business owner, you may want to look into adding a joint banking account — particularly if you have business partners. When you have multiple people needing to spend on projects and pay bills, it’s much easier if the money is coming from one account.
You and your trusted partners can use a joint account together by filling out some paperwork and providing pertinent personal information. From there, you’ll be able to use the account to handle anything from startup expenses to payroll as you begin your business!
Get a Joint Bank Account
The benefits of a joint bank account are plentiful. You and your partner or parent can streamline bill paying and keep tabs on your financial status. And even better, you and your partner can save up for your future together.
Staying on top of your finances will make you happier and more successful. To find more information on anything from finances to fitness, check back for fresh and informative articles!