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Advantages of joint account?

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willsondany
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Advantages of joint account?  Reply with quote  

Can anyone state the advantages of having a joint account in bank?
Post Thu Aug 30, 2012 11:49 am
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littleroc02us
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My wife and I share a joint account because we work together as a team to pay bills, deposit our checks, spend money, save money and invest money. If things were kept seperate then to me it would seem like we were living seperate lives.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Aug 30, 2012 1:15 pm
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kellogg9
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The only real advantage would be as a coordinated effort when paying bills, etc. You also can both have a good idea on where things are going and better manage for future things as a team. It helps establish an even stronger trust. Having a joint account for years can also build bank trust and unlock more benefits (e.g. no-fee Money Orders).

Besides that the only real downside is if your marriage/partnership starts to wane then it could get ugly. Recall that if you want to dissolve a joint account it will require BOTH of you to go in to close it. Also if you had build bank trust and deside to no longer have the joint account then unfortunately this trust is not transferable to new separate accounts. It will be like starting from scratch again.

Probably the best option is to keep separate accounts but, if your bank offers it, set up authorized access to the other person (kind of like how credit cards do it). Depending on the bank you can then link both accounts together and see it as one (even online). At least that way if things turn sour you merely have to make a quick call to cut it off.
Post Wed Sep 05, 2012 4:14 pm
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Julia Craig
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There are two common reasons for establishing joint accounts.

* First is to create an easily administrative account accessible to both parties.
* The second reason is as a tool to reduce probate taxes upon the death of one of the account holders.

There may be negative consequences of transferring assets to a joint account that is with someone other than your spouse as you are giving someone the access to your money.

Thanks
Post Tue Sep 25, 2012 6:15 am
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