Joint Bank Accounts for Unmarried Couples: A Guide to Sharing Finances

If you’re in a long-term relationship and are considering combining your finances, opening a joint bank account may be a practical solution. This option can be helpful for many situations (not only romantic relationships) in making shared expenses more manageable.

While the best joint bank accounts for unmarried couples offer a long list of perks, you could face financial consequences if the relationship ever comes to an end. (I hate to mention it, but it happens!) Before applying for a joint account, make sure you fully weigh the pros and cons.

Key takeaways

• A joint bank account is owned by two people who both have equal access to the features and funds in the account.
• Clear communication and planning with your partner are necessary to avoid any conflicts related to the account.
• Joint bank accounts allow for easier bill payments and greater transparency on both partners’ spending habits.
• When choosing a joint bank account, think about what you’ll use the account for and discuss who will contribute to it and who will manage it. Plus, consider the account's interest rate and fees.

What is a joint bank account?

A joint bank account is a type of checking or savings account that allows two or more people to share the account's funds and manage its transactions. Many associate joint bank accounts with married couples, but unmarried couples can get joint accounts as well.

My husband and I have found it works to have some joint accounts and some separate accounts, but this approach can still work for unmarried couples too. We trust each other to make smart financial decisions with all of them, and having shared savings and investment accounts offers a lot of benefits. Having a joint account allows both of us to deposit and withdraw money from a single account, making it easier to manage shared expenses, such as rent, groceries, and utilities.

Unlike being an authorized user on an account, when you open a joint bank account, both account holders have equal access to the funds in the account. This can be both a positive and a negative.

Either account holder can deposit or withdraw money without the other person's permission. The flip side of this: neither person can remove the other from the account without their consent.

If you open a joint account, you’ll both be equally responsible for any transactions made from the account and fees associated with the account. This means that if one person overdraws the account, both partners will be responsible for paying any overdraft fees or other charges.

Pros and cons of joint bank accounts for unmarried couples

Pros

• Easier money management: With a joint account, both partners can contribute to shared expenses such as rent or mortgage payments, dining out, and groceries. This could make it easier to manage finances and ensure that all bills are paid on time. It could also make it easier to find opportunities to save money.
• Increased transparency: A joint account can be more than a financial tool — it can also help foster trust and transparency in a relationship. Both partners can see all of the transactions made from the account, which could help prevent financial infidelity.
• Convenience for shared bills and expenses: Having a joint account eliminates the need to constantly transfer money between accounts or keep track of who owes what. It can also make it easier to pay bills online, set up automatic payments, and contribute to savings goals.
• Simplified tax filing: If you file taxes jointly, having a joint bank account can make it easier to track income and expenses.

Cons

• Loss of financial independence: Sharing a bank account means that both partners may feel like they have to consult with each other before making any financial decisions. This can feel restrictive or limiting for some people, especially for those who aren’t married.
• Legal implications in case of a breakup: If the relationship ends, it can be complicated to divide assets in a joint account. Depending on the situation, one partner may end up owing the other money or having to take legal action to regain their financial footing after the breakup.
• Possible conflict over spending: If one partner is a big spender while the other is more frugal, it can cause tension or conflict over how to use the funds in the joint account. I know some people avoid this by being clear on what the shared account is for, but keeping some separate funds as well.
• Risk of fraud or theft: Sharing a bank account means that both partners have access to the funds in the account. This can increase the risk of fraud or theft if one partner is not careful with their personal information or account access.

What to consider before opening a joint bank account

Opening a joint bank account with your significant other requires trust and clear communication. Before offering full access to your money to another person, you’ll need to be 100% sure that you're ready for that step. Here are a few things to consider before opening a joint account with someone:

• Purpose of the account: Clarify the intended use of the account upfront to prevent misunderstandings or conflicts down the line. Will it be just for household expenses or bills? Or is it okay to use the account for personal spending on clothes or books or nights out with friends?
• Account management: Determine who will manage the account and have access to online banking. Will this person also use online bill pay features? Decide who’s in charge and be sure everyone is on board.
• Contributions: Discuss who will contribute to the account and how much, and establish a clear plan for managing these contributions.
• Handling emergencies: In case unexpected expenses come up, plan in advance how you’ll handle financial emergencies. You also want to think about and discuss what happens if the relationship ends (I know it might be a downer, but it’s an important conversation).
• Communication: Establish clear guidelines for how you will communicate about the account and any transactions made. While this isn’t always the most comfortable conversation, it’s vital that this happens. Money issues can cause serious difficulties in any sort of relationship.

I know in some social circles, people in relationships face a lot of pressure to merge all of their finances. But if you feel any hesitation about whether it’s a wise idea, don’t jump into joint account ownership. It’s something you can always add later on, but for some people, completely separate finances make them feel more comfortable and safe.

One way to try it out is to keep some accounts and spending separate, and only open a joint account for a small percentage of your money. Any approach can work as long as everyone involved is in agreement.

Personally, I think a joint account for shared expenses like rent and groceries is useful as it lets you keep separate accounts for your own individual needs. But it’s up to you and your partner.

Choosing the right bank account

Choosing the best checking account or savings account involves a few factors such as the type of account ownership, the accessibility of the bank, and the overall account features offered. Let’s look more in-depth at these factors:

• Account ownership: First, make sure the bank you’re interested in offers joint account options. If you don’t see this option on the homepage, reach out to a customer service representative or go into an in-person branch (if available) and ask what joint options they have.
• Interest rate and fees: With any bank account, you’ll want to look for an account with competitive interest rates and low fees so you can maximize your earnings and minimize expenses. Check on whether an account requires direct deposit or a minimum balance to earn higher interest rates.
• In-person vs. online: Do you prefer a bank that offers in-person services and brick-and-mortar locations? Or do you prefer the convenience of online banking? If you do everything on your phone, you may also want to look for a bank with a good mobile app.
• Insurance: You’ll also want to ensure the account is insured. Most banks and credit unions are, but to confirm, look for “Member FDIC” or an indication that the funds are insured by the National Credit Union Administration (NCUA).
• Additional features: Look for additional features you want, such as mobile banking apps, overdraft protection, rewards programs, or sign-up bonuses. You’ll also want to make sure that the account is insured.

Once you’re ready to open the account, you’ll both need to complete an application and provide personal information such as your Social Security number.

FAQs

Bottom line

Opening a joint bank account with your partner can be a convenient and practical way to manage your finances together. It’s also an option for roommates, older parents and their children, and anyone who needs to share money regularly. I find it’s helpful to carefully plan and communicate with your partner, to ensure that you’re both on the same page.

You’ll want to have a high level of trust with someone before opening a joint account, so talk through your expectations beforehand.

Take time to research the best banks available and compare your desired features, making sure your account is NCUA or FDIC insured.