Can unmarried couples open a joint bank account?
Quick insights
- Couples do not need to be married in order to open a shared bank account.
- There are a few different types of shareable bank accounts, such as checking or savings accounts.
- Before you open a joint bank account, you might want to decide whether ease of service outweighs the potential for shared burdens.
If you and a loved one aren’t married but want to combine your finances into one savings or checking account, you may be able to share a joint bank account. At the same time, it can be a good idea to consider the general implications of a joint account before opening one, including potential financial strain on a relationship.
Here are some things to know about opening a bank account as an unmarried couple.
Opening a joint bank account with your partner
Joint bank accounts aren’t just for married couples. In fact, they may be useful for people in all sorts of partnerships, including parents with young children, elderly parents with adult children or other cohabitation living arrangements.
Joint accounts may be an efficient way for partners to share financial obligations, and there are a few different types that may help account holders do so. Let’s look at some of the options below.
Types of joint bank accounts
Two of the most common types of joint accounts are checking or savings accounts:
- Joint checking account: For your daily banking needs, sharing a checking account may make budgeting and tracking expenses more straightforward.
- Joint savings account: Unmarried couples may be able to open a savings account, which can be useful for two people with similar long-term financial goals.
Pros of a joint bank account
Sharing a bank account can help make managing finances simpler. Some benefits may include:
- Ease: Viewing the same statements may make it simpler to create a budget with your partner. Plus, you may also pay bills from the same account because you both share access to the funds.
- Potential fee avoidance: With two people contributing to the same account, there may be the potential for a higher account balance. A higher balance might help you avoid maintenance and convenience fees from the bank.
- More interest from a savings account: A larger balance from two people adding funds to a savings account may also allow you to earn more interest over time.
- Increased insurance: For checking and savings accounts, up to $250,000 of a depositor’s funds are protectedOpens overlay by the Federal Deposit Insurance Corporation (FDIC) by some financial institutions. An account shared by two people may increase that account’s insurance coverage to $500,000. Joint accounts must satisfy requirements listed on the FDIC websiteOpens overlay.
Cons of a joint bank account
Joint bank accounts may also have some drawbacks, including:
- Shared responsibility: One person mismanaging the funds in the account could result in financial consequences for both account holders.
- Account closure difficulties: If you separate from your partner, divvying up the funds in the account may become complicated.
- More communication necessary: Both account holders may complete transactions on the joint account, so communicating about spending and being honest about your financial priorities can be important.
Additional considerations for joint bank accounts
While joint bank accounts can make handling finances in a partnership more efficient, it may also be necessary to discuss how you might handle shared funds if your relationship ends.
Before opening any joint bank account, it can be helpful to communicate expectations clearly with your partner and write down how the funds in your account might be divided in case of an emergency or an end to your partnership.
It may also be a good idea to keep a personal bank account open in addition to a joint account with a partner. This way, you could still have access to personal funds available even in the event that your relationship ends.
In summary
If you’re unmarried and interested in consolidating your finances with your partner, you may want to consider using a joint bank account to balance your financial responsibilities. Before making a decision, understanding both your financial needs and communicating your goals and expectations may help ensure that the account is handled responsibly.
