When working towards similar financial goals as your partner, friend or relative, a joint account could be the best option for both parties.
A joint account can be either a transaction or savings account that is held in two or more names. You can set it up so either both parties need to sign to approve transactions, or only one account holder has to sign. The table below compares some of the best joint bank accounts in the market. Adjust the monthly deposit amount to see suitable accounts for your needs.
These types of accounts are generally used by family members, couples or business partners who trust each other. This is because anyone who is nominated on the account can use the money in any way they see fit. You can compare accounts that allow more than two joint account holders here.
How do savings accounts for couples work?
The account can be opened for the long-term, like an account a couple opens to have their salaries deposited into, or it can be a temporary arrangement to help two people achieve a short-term savings goal such as an overseas holiday.
What are the types of joint bank accounts?
Generally there are two types of joint accounts, namely where both parties have to sign and where either party can sign.
Both parties required to sign
If you would like peace of mind, this is a good option to ensure you know what is happening with the money at all times. This type of joint account requires both account holders to sign for the approval of a transaction for it to be performed. This is popular with business accounts.
However, you have to decide whether the added level of security is required. If you trust your partner implicitly, this may not be the best option as it can make the account difficult to access and less convenient. For example, if you're away and your partner needs money urgently, he or she cannot make any withdrawals or payments without your signature.
Either parties able to sign
When opening a joint account where either party can sign, anyone named on the account can perform a transaction on their own, without the knowledge or approval of the other person. In other words, the level of security is lower than the previous option because the other account holder can spend money without you being in agreement or even knowing about it.
On the other hand, it is a far more flexible option and can make life much easier. For example, a couple may use this account to buy household groceries and pay rent and other bills - needing approval each time you do these things could become very frustrating very quickly.
Back to topWho are joint bank accounts suitable for?
A joint bank account is a good idea for people who really trust each other, and have regular joint payments. It could be your sister, parent or a partner. Opening a joint account with someone you barely know or have just met, even if it's your romantic partner or housemate, is most likely not a good idea.
Case study: Steve and Melissa
Steve and Melissa have been together 5 years and have decided to open a joint bank account. They have both changed their details with payroll so they can get their salaries paid into the joint bank account. The main reason behind this is so Melissa can handle any bill payments while Steve is on the road, as he travels a lot for work.
They decide to open an ING DIRECT Orange Everyday Account online. Steve and Melissa both make incidental purchases, for example Melissa often meets friends for coffee while Steve often has a drink at the pub after work. Neither mind the others spending as long as all the bills are paid, and that they're still saving their agreed amount each month.
Should I open a joint bank account with my partner?
If you're in a long-term relationship and you trust your significant other, a joint bank account can be an excellent tool to help you manage your money effectively and achieve financial goals together. Firstly, you won't have to pay the fees twice and, secondly, drawing up a budget and sticking to it might be easier when you both pool your money together. Furthermore, if one of you has to be away for an extended time frame, the other person can take care of all the financial aspects.
The key to success of a joint bank accounts is trust. It is important that both account holders establish clear ground rules and the lines of communication are not only open but used often. If you have even the smallest doubt about your partner, then don't open a joint bank account and give them full access to your money. One option could be to create a joint account where you deposit a limited amount of funds, while keeping your primary salary account separate and in your name only.
Back to topHow do I compare joint bank accounts?
The easiest way to find a joint bank account is to use the financial comparison tool above to filter accounts according to your needs. We've done all the hard work for you and will allow you to compare most of the offerings available on the market on one page.
Remember, as with any bank account, you'll want to find a bank that offers joint bank accounts with as few fees as possible. In fact, it's preferable to find one that won't charge you transaction fees, that will give you easy access to your funds and that will offer a reasonably good interest rate on the funds you have in your account.
Coordinating your schedules so you're both available at the same time to open the account would be a nightmare - the majority of banks will let you enter all the information online, saving you a lot of time.
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What are the pros and cons to opening a joint bank account?
Pros
- Save together. These accounts are well suited to people who have similar spending habits. Both parties should come to an agreement regarding how and when money will be deposited and withdrawn and to ensure that both share the same goals.
- Less fees. People with joint bank accounts don't have as many fees as they would if they had two individual accounts.
- Full transparency. Since both of your names are on the account, you both have access to the other person's money and can see what the other is spending and where.
- Easier to pay and schedule bills. With all the money in one place, it makes it a lot easier for couples to manage their personal finances, pay rent and other bills.
Cons
- Complete access to both parties money. If you opt for a joint bank account where either account holder can sign, either party can make purchases without the others consent.
- Division of funds in case of separation. Either of the account holders can clear out the account, regardless of who made the deposits. Yes, you can take the other person to court to recover your share of the money, but it's a long and arduous process that offers you no guarantees.
- Complete transparency. This is a double-edged sword; while there is complete transparency you may lose some of your financial privacy.
Joint bank accounts can also lead to trouble...what can go wrong?
If you prefer your independence, value financial privacy and like managing your own money, then a joint account isn't the best idea.
It's critical that partners and couples are completely open regarding their spending habits. If one person is committed to saving, and the other can't keep their spending under control, this can quickly lead to issues. Furthermore, some couples are hesitant to open a joint bank account because things can get complicated if they separate - it is important to agree on a strategy for this prior to opening a joint account.
You need to be careful if someone is trying to push you into opening a joint bank account. Someone who might have money problems could see you as the answer to their prayers. Things you could hear include: "don't you trust me?", "it means you don't love me" or "what do you think I'm going to do? Run off with your money?" These are all a form of emotional blackmail, and there could be a reason they are so eager to share finances.
The other person's financial status should be clear prior to opening an account together - you don't want to take on someone else's debt. This is especially true about joint bank accounts that offer credit. Your partner could rack up a huge amount of debt they can't pay back and then you both are stuck with a poor credit history. Furthermore, you are just as responsible in the eyes of the law for paying back the loan as is the person who actually spent the money.
Back to top
Do you pool your expenses together?
- Do you both use the same budget and consider your costs as shared expenses rather than individual expenses? If all you have is shared expenses, then it is logical to have a joint bank account.
- Do you both spend money the same way?
- Are both financially responsible or not? Is one of you going to scrimp and save while the other empties the account, spending money on frivolous things so that there's no money left to cover the bills? If this is the case, you are better off either keeping things separate or opening a joint account where both of you have to sign for each transaction.
- Are you comfortable with the idea of opening a joint bank account?
- You might save a few dollars on fees, but if you aren't really all that happy about the idea, then don't do it.
- Is the trust there?
- Trusting the other person completely and believing they will be financially responsible at all times, even if things get tough, is essential. If the trust isn't there, you are better off keeping things separate.
- Are the lines of communication open?
- Do you both find it easy to talk about money issues? If there are communication problems regarding money and you feel you need to hold back on expressing your opinion, then you are better off avoiding a joint account.
- Are our financial goals the same?
- You need to confirm that you're both working toward the same financial goals, including short term goals such as an overseas trip together and long term goals like buying a house. If you're not on the same page, a joint account will be less likely to work.
- What is the goal of opening a joint bank account?
- Figure out exactly why you should open an account and see if there is a better way of achieving said objective. If you want to save money on fees, for example, consider whether the few dollars are really worth the worry. You could simply shop around to find an account with lower fees instead of opening a joint account.
Decided to open a joint account? Here are some tips for couples.
Communication is key
If you've decided to go ahead and open a joint bank account with your partner, make sure you talk about the important issues in advance. For example:
- Will either partner have an allowance to spend on whatever they want?
- How much does each party have to put towards the bills, and who will make sure these are paid?
- Are there financial issues that need to be dealt with prior to opening a joint account?
- What to do about financial obligations from the past, like child support, loans or other touchy issues?
- If one party earns a higher salary, will they be allowed to spend more?
Then, you will have to decide which accounts will be set up as joint accounts and which will remain separate. For example, some couples choose to pool their savings in a joint account while their everyday accounts remain separate. Other couples opt to separate ownership of property, such as their homes, especially when said property was purchased before the relationship began.
Work out a budget
To make life easier, put together a monthly budget. Write down all your expenditure for a week, which will allow you to see where the money is going and if there are areas you can cut back on to save some money. Then, decide on a budget. Don't be too strict and make sure to give yourselves some 'play' money. Also, make sure you check in regularly to make sure you're on track with your budget, and address anything that needs changing / isn't working.
Maintain steady savings
No matter how hard we strive to avoid problems, it's best that you make a plan for emergencies. This could be anything from unemployment or illness to an accident or your car needing major work. It's essential to have some money set aside specifically for such emergencies. A personal overdraft could be useful in such situations as well as ensuring you have quite a bit of free credit balance on your credit cards. Of course, don't forget about insurance either. Ideally, though, you should set aside some cash in a separate bank account as well.
Remember your financial goals
By establishing your financial goals and things you want to achieve together you will find it a lot easier to save when you are both working towards the same objective.
For some couples, a joint bank account is a great option. If you decide to go with a joint bank account, you will both have to go to the bank and open the account. Note that certain banks will let you open the account online, which will make life a lot easier in terms of schedules.
Real questions from users
Is it possible to get additional debit cards?
Some banks will allow you to give out additional credit cards tied to your main credit card account. While not strictly a joint account, it still gives another person power over your money. So, to make sure things go smoothly:
- Never give out cards to people you don't know or trust;
- Don't give out cards if you aren't able to manage your own credit card properly;
- Keep in mind that in most cases you are the only one responsible for the loan. No matter who spends the money, you will still be the one who has to pay it back, so think twice before giving out cards attached to your credit card account.
If you aren't too certain about opening a joint bank account and giving your partner full access to your money, an alternative that would still offer you the convenience you are looking for is to open a joint bank account that you use to pay bills while still keeping your money in separate accounts. Just have a talk with your significant other in terms of what bills the account will be used to pay and how much each person will contribute to said bills.
How much should we deposit?
To decide how much will be deposited in the account, you can work out a fair percentage you can both put in the account every week, fortnight or month, depending on how you get paid. This percentage should generally be calculated in terms of how much each party makes as well as what the budget is and what each party's expenses are. However, talking is the best way to come up with a way to make sure both sides are happy so that you can avoid problems, including resentment building up and cheques being bounced.
Joint bank accounts can be a good idea but only if you and your partner are on the same page regarding how you spend your money and what your financial goals are. If you are simply opening the account for the sake of convenience, remember that there are plenty of other options that can provide the same level of convenience without the risk. However, if the trust is there, a joint bank account can definitely make life much easier, especially when you are working together to achieve certain financial goals.
Have you considered joint life insurance cover?
If your considering taking out a joint bank account, it could also be worth considering a joint life insurance policy to make sure your spouse or partner is protected. Joint-cover is designed for couples or business partners with similar life insurance cover requirements. As there is only one policy in place for two people, the sum-insured will be paid on a "first death" basis, after the payment is made the contract will end.
Joint life insurance policies generally offer premium discounts of between 5-10%.
Hi,
My boyfriend and I are looking to open a joint account but don’t want to use either of our banks (ING and NAB)
It seems like a lot of these need linked everyday accounts,
Can you please clarify the ones that don’t need a linked account?
Thank you,
Hi Chelsea,
Thanks for your inquiry.
Yes, there are actually (joint) savings accounts that do not need a linked transaction account and you can compare your options here. I’d encourage you to play with the calculator (on top of the table) to see which account can give you high interest earnings. Once you have chosen an account you wish to apply, simply click on the green ‘Open’ button to head over to the bank’s website.
I hope this has helped.
Cheers,
May
I have a ANZ account and my partner wants to join in with my account as a joint account.cam I go to the bank and fill out a form and get him to sign. Then I bring it to the bank to get a new card
Hi Dianne,
Thanks for your question.
If your partner is a new customer to ANZ he will need to verify his ID in a branch or Bank@Post location. You can grab the forms but your partner will need to come into the branch anyway.
Hope this helps.
We have a joint account, twice a month there are 2 payments of $600 going to a separate mortgage account from the joint account. If i pay $600 at month and my partner pays 2 payments $300 how would this make a difference between our payments to the mortgage as the input is too a joint account and the correct amount is drawn by the mortgage account, the branch assistant says she is making 2 payments a month and therefore paying more than I am, but that’s rubbish as far as I am concerned, If i pay $1000 into the joint account only the same set amount will go to the mortgage irrespective. I feel we have been given misleading information.
If the money we both pay went directly into the mortgage I would agree with the assistants comments but not in this case. Assistance please. Regards.
Hi Revder,
Thanks for your question, though I’m not too sure if I understand the situation correctly.
Are the mortgage repayments being deducted from your joint account twice a month rather than once a month?
Cheers,
Shirley
hi. we have an account when we can only withdraw with both signatures. do we need to be at the bank together to do that, or could we go to different branches? Thanks
Hi Sveta,
Thanks for your question.
Yes you need to be in the same branch to do that so you can show ID etc together.
Cheers,
Shirley
I need a joint savings account for a few months to collect money and then withdraw to pay for an even, and then close account. Is this something one would do? When I say joint, I mean someone else can access the money if I happen to be incapacitated or die. How much would such an account cost?
Hi Carole,
Thanks for your comment.
As a financial comparison service, we can’t actually recommend any one service, strategy or product to our users as the ‘best’ option will always depend on their individual financial circumstances. The costs associated with a joint bank account will also vary according to which card you choose.
I would suggest you consider your financial situation and needs and compare these factors with the joint bank accounts available in the market. By completing such a comparison, you will be able to make an informed decision based on your specific needs.
I hope this has answered your question.
Thanks,
Sally
hi there,
my partner and i are wanting to open up a joint savings account and would like some guidance, we not live in different countries so it is a bit difficult, he is american and i am australian,
do we just open up an account in either one of the countries?
Hi Andy,
Thanks for your question.
Generally, Australian banks only allow overseas account holders to open accounts if the cardholders is moving to Australia in the near future.
You may need to research some US banks with your partner to confirm whether overseas and domestic account holders can share accounts there.
I hope this has helped.
Thanks,
Sally
I am looking to open a joint account with three parties listed, do any of the banks offer this type of account ?
Hi Robyn,
Thanks for your question.
Since it’s an industry standard that bank accounts allow up to two joint account holders, we don’t know of any banks that allow more than 2 joint account holders.
However, with some accounts you may be able to add a ‘signatory’ which allows someone else access to the account (you certainly can with Business accounts).
Cheers,
Shirley
hi which bank can i open up an account with my daughter so that we can both access it
Hi Tanya,
Thank you for contacting finder.com.au, a financial comparison website, we are not able to offer personalised advice or recommend a product to you however we can offer generalised advice on your query.
In order for both parties who are named on an account to have open access to the funds you will need to apply for an account that either party can sign, all the above accounts are able to be accessed via ATMs and most would allow you to get an additional card with the account to allow both parties to have ATM access.
It would be best to use the above comparison to see which account best suits your needs then contact the bank directly, through the “Go to site” button, to discuss your specific wishes.
Regards
Jodie
I am thinking of opening a joint account with my son. 2 to sign. The money will be used to pay funeral expenses at a later date. Can the account be style that if one of the parties to the account dies …the remaining person can access the funds?
Hi Fern,
Thanks for your question.
The account can be styled that if one of the parties to the account does, the other party can access the funds.
The financial institution that holds this account will require this in writing when the account is opened.
Cheers,
Shirley
Hi, me and my boyfriend had relationship nearly 1 year and we lived together about 5 months. We want to make a join account. I just want to ask what documents are require to do that. Thanks
Hi Anna,
Thanks for your question.
Generally you’ll need your tax file number (TFN). If you’re an existing customer of your bank, make sure you have your customer ID, too.
If you’re a new customer you’ll have to see the bank in a branch (after they’ve opened your account) with 100 points of identification. This applies for both applicants.
Cheers,
Shirley