Many people have everyday financial responsibilities, but things can be very complicated if they have separate bank accounts. So, for example, a joint bank account allows people to combine their finances so that their shared goals can remain that way. So this may be an option that will be right for you.
What Is a Joint Bank Account?
Joint bank accounts have more than one owner. Each person may have equal rights to make deposits and withdrawals. Business partners, close relatives and spouses open joint bank accounts to have a single pool of money.
What Are the Types of Joint Bank Accounts?
The Convenience Account
One person funds this account, and this person has the right to use these funds while she and the other account owner are both alive. The other owner does not make deposits or withdraw funds from this account, but they are the owning partner’s agent. If the main partner passes away, the other owner has the right to use the funds in the account. According to SoFi. “A joint account in marriage offers convenience and a sense of more complete coupledom. You are truly a finance partners. It can make managing your money and shared goals easier.”
The Revocable Account
The revocable account has more than one owner, but each owner can make withdrawals without the consent of the other.
Joint Tenants with Rights of Survivorship
With joint tenants with rights of survivorship, each person owns a percentage of the amount deposited in the account. If an owner passes away, the other owner will receive the funds rather than the deceased owner’s next of kin. This type of account allows people to transfer their assets upon the death of an owner without the need for the other owner to wait until the probate process ends.
Joint Tenants in Common
Each person also owns a percentage of the assets of the joint tenants in the joint account. Upon the death of a partner, the assets will be transferred to the owner’s estate rather than the other owner.
What Are the Benefits of a Joint Bank Account?
The main benefit of a joint bank account is that all of the money that one or more owners have will be in one place. This is advantageous for people with joint responsibilities. For example, some people run a household, and others run a business. A joint bank account allows both parties to make transactions when they need to do so without requiring the consent of the other.
A married couple can benefit from a joint bank account. Both the husband and wife contribute money for the bills, so making these payments with a joint bank account simplifies the process and keeps everything in order. Then, the couple doesn’t need to figure out how to split everything in half all of the time.
When you have a joint bank account, more than one person contributes to the account. This can make it easier for the owners to deposit the minimum amount of money to avoid paying a monthly service fee.
You have several options available to you. Visit SoFI (SoFi Bank) website and find out what those options are now.
Interesting Related Article: “How Does a Joint Savings Account Give Financial Freedom to Couples?“