What is a Joint Account?

Whether your day is booked with work obligations, study sessions at school, dinner with the family, or happy hour with your friends, our daily lives are constantly going a mile a minute. And sometimes, the last thing on your mind when you’re on the go is your finances.

No matter if your wedding is around the corner and you want to combine finances with your partner or you want to keep an eye on your teenager’s spending habits, having a joint account can make your financial life a little easier. In this article, we’ll take a look at what a joint account is, how they’re used, and more.

What is a joint account?

Investopedia describes joint accounts as working similarly to individual accounts, except they have multiple authorized users that can access the account. At Clearview, members have the option to be joint on all savings and checking solutions with the exception of Individual Retirement Accounts (IRA).

Why would I need one?

When discussing finances with a partner, couples may decide that having a joint account will make managing finances more cohesive and convenient. This combined solution can help the couple pay any shared bills, such as rent or utilities, set aside money for a mutual savings goal, and track overall spending.

Having multiple authorized users on an account can come in handy in other scenarios as well. For example, a parent may want the freedom to peek into their teenager’s spending habits and make sure they’re managing their money properly. Alternatively, a senior may want their adult children to have access to help them stay on top of their finances. Ultimately, these scenarios encourage the two account owners to openly communicate about their money.

Are there any cons?

Some joint account owners can face trouble if they haven't talked to each other prior to combining their finances, especially if one person is more frugal than the other.

It's also important to recognize that fees and penalties for the joint account are the responsibility of both parties. So, if your teenager or your partner overdrafts your joint checking account, you're also held accountable for the negative balances and any associated penalties.

Overall, there are many perks to having a joint account with your partner or family member. As long as you’re both on the same page with how to manage finances, you can find this solution to be helpful in handling day to day money matters.