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Everything To Know About Joint Checking Accounts

A joint checking account is a great tool for two individuals who want to manage their money together. It is suitable for couples, parents, children, siblings and even roommates. While it benefits in a thousand ways, there are many issues that concern bankers and even those who sign up for it. Therefore, a thorough understanding of the subject is necessary before you sign up for a new joint account. Here is everything you need to know about joint checking accounts.

Issues with accountability
Since there are two people involved in a joint account, both parties are required to be responsible for the money. If either of the party is careless with the money, issues with accountability may arise. A joint account is susceptible to the mistakes made by either of the persons. Therefore, it is important for both the parties to keep each other well-informed and make withdrawal decisions unanimously. Basically, it works on the “all for one, one for all” principle.

Absolute transparency
If you have a habit of hiding your expenditures then this may not be the best option for you. Joint accounts offer complete transparency to both the owners of all the activities that take place in the account. Thus, both the parties are fully aware of their accounts. It is observed that joint accounts have been a reason for several split-ups, in the past.

Direct effect on credit score
We live in a world where privacy is a myth. You are monitored 24×7 by people whom you rely on for services. Bank being a service institution heavily regulates control over all their customers. Even the slightest mistake could affect your credit score. Therefore, it is crucial that both members are mature enough to use the account at disposal in a responsible way and build better credit scores for not only themselves but also for each other.

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Reliability affects the success of the account
Can you trust your partner? Would you take complete responsibility for their actions? Reliability indeed affects the success of the account. If either of the party decides to leave or end the cooperation, the account ceases to be a successful partnership. If you are responsible enough, you can save well and utilize the benefits of the account.

Convenient bill payments
If you live with the co-owner of the joint checking account and share bills with them, then this feature comes is beneficial. You can opt for automatic payment deductions and thus, avoid further complicated calculations.

Both the bank account owners can close it
One drawback that has been a topic of debate when it comes to joint checking accounts is that it allows access to all the features to both the parties. This leads to many unsolvable issues; one of the biggest ones being that of who can close the account. Since both the owners are equally in charge of the account, they can both close the account without the other’s permission, making it one of the more telling issues of joint accounts.

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