A joint account is a bank account you can share with your spouse, relatives, your business associates or even within cooperatives and clubs members, who have common financial goal and have a high level of trust in each other.
With join account, a high level of transparency is needed, as each person that is signatory to the account is entitled to make and view transactions, hold a bank cards, and likewise allows anyone named on the account to access funds within it.
Joint accounts run could care different prefixes.
The names of the holders of the account could be conjoined with an ‘and’ or an ‘or’ . If the account is listed as an ‘and’ account, then both or all parties must sign or approve to access funds. If it is an ‘or’ account, only one of the parties needs to sign.
Having a joint account could be a good way to combine and grow your money, to work towards your common goals. It can also help couples keep each other in check, to curb excess spending habits.
Here are seven benefits of having a joint account
1. It helps a couple save and plan for long term projects like buying a house, new car, vacation trips and all.
2. It helps spouses monitor each other’s spending habits.
3. It easier to see the whole picture. i.e. it helps both spouses have an idea of how the future would look like.
4. It makes both partners contributors to the growth of the family. Unlike where only one partner is making money, while the other just spends.
5. It promotes financial trust.
6. It eases payment of expenses.
7. It aids family growth.
Joint account is good but its success depends on openness, trust, faithfulness and success of the marriage itself.
Lastly, the joint account should be flexible and mutual, such that either of the spouses, can opt out with ease when cash inflow begins to dwindle.