It is not possible to transfer money from a joint account to a single account, but the opposite can be done.
How to Manage Joint Bank Accounts When Married?
Marriage is a landmark event in anybody’s life. Long-term goals like buying a house, planning for children's education, etc., are the matter of importance that comes along with it.
However, a new family need a financially stable ground, among many things. Making monetary plans beforehand eases the way of creating these plans. There are several options, like opening a separate or joint account for couples to keep budgetary planning at a regular place and pace. Read along to know more about this.
How to Manage or Organise a Bank Account by a Couple?
Organising the bank account is a challenging task if not handled properly. To ensure that the financial status stays updated with time, follow the ways mentioned below:
- Create Separate Bank Accounts: It is often easier to track expenses while using two separate accounts. One of the accounts can be used for expenses like grocery shopping, bill payments etc. Then the other is for managing loan amounts or any other bigger expenses like making an emergency fund.
- Merge Money Halfway: Couple can individually open their bank accounts and start saving money there. This way they can merge this funded amount. Even though it might be a little confusing to handle in the beginning, but it can lower the stress of juggling both accounts later. Managing bills from one account becomes much more simpler.
- Make a Joint Savings Account: You can also open a joint savings account from the beginning for an emergency situation. It might not be always possible to keep track of the money flow in these cases. Then opting for the emergency account becomes the most suitable decision.You can also deposit a certain calculated amount from both paychecks to fund this account. This will help keep track of the big expenses and calculate further to see what it’ll require to deposit next month.
What Are the Types of Suitable Bank Accounts for Married Couples?
A joint account is the most common type of account for married couples. Other than that, they can also have separate bank accounts if it helps them proficiently keep track of their financial expenses.
- Joint Bank Account: A joint bank account is when you share an account with another person. Families and close relatives keep this type of account to track their financial status easily. They have several options like viewing, using it for different prospects,
- Either (or) Survivor-Joint Account: Two people operate this type of joint account- primary and secondary account holders, and the access to the account lies with both. In case of any emergency where one of them passes away, there remain two options. The other surviving person can opt to continue the account or transfer the balance wholly to their account.
- Anyone (or) Survivor-joint account: This one is similar to the former. If you want to include your kids when they are eligible to become account holders, this type of joint bank account gives that option. If anyone passes away, the other people can continue to operate the account.
- Former (or) Survivor: Here, the primary account holder is the one who can operate it even though it is a joint account. If the primary account holder faces untimely demise, then only the secondary account holder can operate it. The secondary account holder also carries the ability to transfer the balance in their name in such emergency scenarios.
- Later (or) Survivor: This aligns more with the former (or) survivor account, but the secondary account holder can operate the account here. Only after the secondary account holder's death can the primary account holder gain access to use it.
- Jointly Type of Joint Account: Here, all the account holders can access and use the account. However, if any account holder faces untimely demise, the survivor account holder gets the remaining account. Thereafter, the account shuts down permanently.
- Jointly or Survivor Type of Joint Account: Here, all the account holders can operate, and unlike the above account, it still remains operational even after the account holder's death. Here too, all the account holders are eligible to operate it.
- Separate Bank Account: A separate bank account can be easier for any married couple to operate and keep things organised. In case of different loans, routine expenses and other factors, the account holders can divide it amongst themselves. This will help in keeping everything organised. There are different options to avail in this scenario. You can have bank accounts in two separate banks or a similar bank, which will help you take different loans. Keeping track of the loan amounts in case of taking loans might become more efficient with having separate bank accounts.
What Are the Tips for Managing Bank Accounts by Married couples?
Managing these accounts can be a confusing task at times. Hence with the necessary tips, it can be less challenging.
- Have Clear Communication: Managing financial expenses is not something that can be managed by a singular person. Hence communication plays a vital role in ensuring that everything stays updated with time. This is also plausible if one of the partners is in charge of overlooking financial matters. Here the person in charge of other expenses is responsible for showing a month's budgetary payments.
- Set Your Goals Beforehand: Having long-term goals while venturing out into the married life journey is normal. However, listing those out from the beginning helps in several cases. It will enable you to carve out a clear vision of how your financial stature is going to be.
- Take Necessities into Consideration: Routine expenses tend to increase as the family enlarges further. Keeping those prices in check will give a rough estimation of how much money goes into daily expenses.
- Make a Financial Planner: One of the best ways to keep things under view is to manage a financial planner. It'll help you to see monthly or quarterly basis expenses. In a financial crisis, you can opt to cut expenses on certain things or put the extra balance amount in emergency funds.
Why Should Married Couples Have Joint Bank Accounts?
Using a joint account for couples is normal because it enables them to view and operate the account regularly. Some other reasons include the following:
- Have Easy Access: Having a joint account makes it easier for the couple to organise and manage since both have access to it.
- Easy Payments: Keeping track of spending becomes much easier with a joint account. Since these accounts are mainly used to pay big payments, streamlining becomes much easier.
- For Emergency funding: In emergencies, funding becomes necessary, which cannot be well managed in separate accounts. An emergency fund can be well maintained by keeping a certain amount of money in the joint account on a monthly basis.
These are some ways to manage and organise financial planning, but you always have the option to customise your way. You can always opt for the one that suits your choice.
Keeping separate accounts, in the beginning, will give a rough overview of how financial procedure takes place. However, opening both individual and joint savings accounts for couples has many benefits. Making sure you use it properly to make your dreams come true is the most important thing.
FAQS about Joint Bank Accounts for Couples
Every bank has its own limit of members that can be added. However, it also depends on what kind of joint accounts are opened, the type of agreement signed with the bank etc.
One of the many options is to divide the income of both people equally. Depositing a certain amount of money in the joint bank account every month is another way to divide finances.
You will need a joint account application form, Aadhaar/voter/pan card/driver’s license/ ration card and the recent electricity bill of both partners. Many banks also ask for additional documents such as passport-size photos, passports etc. In that case, have a talk with your bank and see what they require.
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