Forget making it Facebook official.
Opening a joint bank account is the true way to show youre committed.
OK, so not really.
What Is a Joint Bank Account?
A joint bank account is much like any other account you open with yourbank or credit union.
You arent the only account holder.
Joint accounts include checking and savings accounts.
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Balance Transfer = Credit Card Cheat Code
But romantic partners arent the only ones who open joint bank accounts.
A huge pro of joint accounts is the financial power of combined money.
Often, certain accounts will pay higher interest rates when you have more money in them.
Reaching that total is easier with more than one contributor.
Another major con of joint bank accounts is what can happen if your co-account owner mismanages the funds.
Further, any funds in a joint bank account count toward both of your assets.
Finally, joint bank accounts can get messy when one of the owners passes away.
The process is typically easy.
Just be sure to bring:
You will need to fill out an utility, and voila!
You now co-own a joint bank account.
You should receive a debit card, a checkbook and information regarding how the account works.
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These often have no monthly maintenance fees and give parents a lot of oversight.
Just be sure to read the fine print about what happens when your teen ages out of the account.
This makes sending money back and forth easy and safe.
Just be cautious of fees.
Weve rounded up the answers to the questions our readers are most commonly asking.
In general, our recommendations for thebest checkingandsavings accountsstand when opening a joint account.
Because APYs and fees can change on a dime, our recommendations may change at times too.
However, Ally, Capital One, Alliant and SoFi are consistent favorites for joint accounts.
If you and the other account holder are married and filing together, your taxes wont be anymore complicated.
Interest earned on the joint account is reported on your tax return.
Its best to speak to a tax professional if you arent sure.
Opening a joint account is just as straightforward as opening your own checking or savings account.
You will also need to determine how you will fund the account initially.
Closing a joint bank account varies by financial institution.
Keep this in mind when deciding if opening a joint account with someone makes sense.
Check with your specific financial institution regarding account closure.
Sharing a credit card in both your names, however, has a direct impact on your credit score.
Contributor Timothy Moore is a writer and editor in Cincinnati, Ohio.
He focuses on banks, loans and insurance for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
