Joint savings accounts for couples, explained

There’s a lot to consider when blending your life with your partner. Whether you’re moving in together or getting married, some of the most important decisions are around how—or if—to combine your finances. 

One important topic: Should you open a joint savings account?

Opening a joint savings account, meaning an account that you both access and add to, can be a great way to work together on your financial goals—but there’s a lot to know before doing so. In our article, “Joint savings accounts for couples, explained,” we take a closer look at what it means to open a joint savings account with your partner and how to decide if it’s right for you.

A joint bank account is shared by two or more individuals. It can be a joint savings account or a joint checking account.

Joint accounts function just like normal bank accounts. The main difference is that both account holders (you and your partner) have full access to the account and have equal ownership of the funds.

If you’re thinking about a joint account, you might first want to learn more about what to consider before joining finances with your partner.

With a shared savings account, both account holders have the same power over the account. That means you and your partner can both add and take out money. And you’ll both be able to see all account activity. 

With a joint account, there’s no difference between the money you or your partner add—they all go into one shared pool. Both account holders can take out or spend money from the pool, even if they weren’t the one who added the money. One of the biggest perks of a joint account is having a shared pool of expenses and contributions, which can simplify how you save and spend as a couple.

As with all financial decisions, there are potential pros and cons you’ll want to consider. One major plus of joint accounts is that they may actually strengthen your relationship, according to a Journal of Consumer Research study by Jenny Olson, Ph.D., an assistant professor of marketing at Indiana University.

“Couples with joint accounts were significantly better off than couples with separate accounts,” Olson says. “While relationship quality tends to decline over time, on average, we found that couples randomly assigned to merge their finances were buffered against that decline.”

“A joint bank account is associated with greater financial goal alignment,” Olson adds. “It promotes a more communal view of your marriage. You’re accessing the same pool of shared resources, so you need to work together when managing those resources. You tend to be more on the same page.”

Here are just a few other advantages of joint savings accounts for couples, explained:

• Convenience: One of the biggest perks of a joint account is having a shared pool of spending and contributing. This can simplify how you save and spend as a couple—no more worrying about paying each other back or keeping track of who contributes what. 

• Openness and transparency: With a shared account, you and your partner have a new window into the other’s financial situation and decision making. This clear view can help a couple talk about finances in a more open and honest way. “It facilitates communication and transparency, two benefits we know are good for marriage,” Olson says.

• A commitment to shared goals: An important part of a relationship is sharing common goals, whether that’s traveling the world or saving for a house. No matter your plans, a joint account can help you align your short- and long-term financial goals.

• More savings: A shared account can help you save more by adding your money together. And if that account earns interest, a higher balance means more earnings over time. For example, 360 Performance Savings offers a high rate to help your balance grow.

While there are plenty of good reasons for opening a joint savings account, there are also some unwanted aspects that could happen which you’ll need to consider. Here are just a few cons of joint savings accounts for couples, explained: 

• Lack of privacy: When you open a joint savings account, you’ll give up a level of financial privacy that you would have had with a solo savings account. 

• Possible issues with creditors: If your partner has financial troubles, your contributions to the shared account could be used by creditors to pay off any debts.

• The potential of a breakup: Ending a relationship can be complicated, but shared finances can make things even more challenging. Remember that if you split, your partner might have a right to their share of the money in your joint account.

• Difficulty tracking spending: Keeping track of the exact amount of money going in or out of a joint account can be tricky if more than one person is spending or adding money. Good communication is important to keep correct tabs on your balance and to avoid issues with spending and tracking bills or payments.

Consider all the factors before pooling your money into a joint savings account. You need to understand your and your partner’s financial situations, your shared goals and the state of your relationship.

“We’re not saying a joint bank account is the only option or best option for all couples,” Olson says. “There are important nuances. There are going to be some situations where choosing an account structure warrants a conversation. Take a step back and talk to your partner about what will be best for you and your unique financial circumstances.”

When it comes to financial decisions, nothing is one-size-fits-all. So, how do you decide whether a joint bank account is the right move for you and your partner? Here are some signs that a shared savings account may be good for both of you:

• You live together and want to put money away for household expenses, like rent payments or home repairs. 

• You’re saving for shared goals, like retirement, travel or a child’s college fund. 

• You communicate openly and honestly about your spending and saving habits. 

• You understand each other’s financial background, and neither of you has debts that the other does not know about or other issues that might negatively affect a shared account.

• You already have a joint checking account and are looking for more ways to organize your financial life.

The process of opening a joint savings account for couples is similar to opening a savings account on your own. If you’re opening a new account, you can either visit a branch or apply online. You and your partner will need to complete an application that includes personal information for both account owners. If you want to add a co-owner to an existing account, you can do so through your online account.

Capital One 360 Performance Savings accounts are fee free: Add in no minimum balance requirements and you have more money in your wallet.