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What is a Joint Savings Account?

Are you planning to open a joint savings account with your spouse? Read ahead to know more...
Kulbhushaan Raghuvanshi Jul 7, 2019
An engagement can bring lots of changes in a couple's lifestyle. At some point you both may think about opening a joint savings account. You can use this account for paying bills or future expenses. These type of accounts are also ideal for couples who are planning to start a family.

About Joint Savings Account

It is a bank account created for two individuals for their mutual benefit. Married couples often opt for such accounts to establish financial security. Nowadays, even couples and friends open joint accounts to save money for future. It is one of the safest options of investment. The interest you get on the cash in your account is marginal but enough.

Joint Savings Account with Boyfriend

These types of accounts can be a financial asset for a couple. Opening it can be a new and enthralling experience, but both of you should handle the account carefully.
Avoid potential problems with frequent communication with you partner about bank related issues. Having a joint account will solve all your hassles because you would only have to deal with one set of records.
If you plan to use your money to pay bills as a couple, note down which bills you want to pay. Always remember that you would be left with nothing if your boyfriend decides to run out on you and empty the account. You cannot take any legal action if your money is in such a type of account. 
Another problem that can arise is that if he writes bad checks, then he is violating the law and even you can face the effects. If he becomes a convict in a lawsuit, then his creditors can seize your share of money from account. In the case given here your share of money won't be separated, unless the joint account is with your spouse and you get divorced.
The important point to remember here is you should be able to trust each other while opening a joint savings account. There should be equal sharing of money. Both of you should keep a track on what is happening with your account ,so that there shouldn't be mistrust or lies between you and your boyfriend.

Joint Savings Account after Death

The ownerships rights on a this account in case of death differs according to the law from state to state. Based on common laws, property laws are the deciding factors, on how the money in a joint bank account should be distributed in case of death of one of the owners.
If a state's law does not encourage the right of survivor-ship in a joint savings account, the money or property which that account contains may undergo a law check. This means the surviving owner gets his/her share of the money, but the decedent's share of money or property will pass through a probate process to be passed on to a rightful owner.
In some states, where right to survivor-ship is not considered legal, the decedent's money from the account is paid to his/her creditors. If still a substantial amount of money is left in the account, it is distributed according to the deceased person's will. If there is no legal matter, then the money is distributed to the wife or spouse.
Children always get first preference. In their absence the money can also be given to parents or siblings of the deceased. If the deceased has named a beneficiary of the account then, law of the state will decide that full or half share of the decedent's money will go the beneficiary. This can also be called a payable on death account.
Opening a joint savings account is a big step in a couple's life. It is always suggested to weigh all the options before opening an account together.