All You Need To Know About Joint Savings Account

Sharing is caring. That said when you have someone to share your expenses and bills, would it not be a good idea. Yes, goodbye to those tiring days of paying joint bills from separate bank accounts. A joint saving account is a perfect solution to meet your expenses and save money for the future. 

What is a joint account?

It is a type of savings account where two people can deposit into and withdraw money. A joint account can be opened on a long term or short-term basis. If you are married and would want to save money for your future finances, you can choose a joint account. 

 Types of a joint account

 There are two types of joint accounts – both people must sign in, or either person can sign up for the same.

• Both parties

Under this type, both the parties of the account must sign their approval to make a transaction. One way, this account management is good to keep track of your expenses and shared money. Business enterprises and roommates use such accounts for sharing their bills. The drawback is it is time-consuming to get access to the funds. For instance, if one partner is away or busy, the other partner cannot withdraw the funds in case of an emergency. 

• Either party

This type of account is more liberal and relaxed. Usually, married couples prefer them. Under this type, you can withdraw funds at any time, without the permission or consent of the other. A joint account is a flexible type of saving account with the person you trust wholeheartedly.  

 Who should use a joint savings account?

If you plan to open a joint savings account, consider opening with your close family members or friends, whom you can trust. Opening a joint account with a person whom you barely know is like inviting risks and loss.

Benefits:

• Save funds towards achieving your goals together by sharing the expenses.
  
  
• Some banks provide zero balance saving account for opening a joint account. Bank charges are comparatively less than managing an individual account.
  
  
• Both parties can track how much the other is spending and how much they are contributing.
  
  
• When two parties deposit money to the account, there is high account balance, which makes you eligible to get high-interest rates. Also, you need not take the burden alone of putting a minimum deposit or balance. 

Final interpretation:

On the safer side, always have excellent communication with the other partner. You must talk to the other person about any issues that might come up. The best thing is you can also open a zero balance account jointly online through mobile banking app or net banking apps.