Joint account
This query is : Resolved
Anand Kasana
(Querist)
13 May 2015
what are the benefits and drawbacks of joint account of husband and wife?
CS Mitesh Mehta
(Expert)
14 May 2015
Advantages
Joint bank accounts are easy to use because either spouse can access the money at any time to make payments. Even though both of your names are on the account, you don't need written permission from your spouse to access the account. This can be particularly helpful if one spouse is unreachable. Having your assets in one joint account can also make your financial lives simpler, as you do not have to track multiple accounts. A single joint account eliminates the possibility of having too much money in one account and not enough in the other when you need it, reducing the chance of an overdraft.
Disadvantages
One of the negatives of a joint account is that you might not always know what is in the account. Since both spouses have unrestricted access to the account, you could end up overdrawn if your spouse makes purchases and fails to tell you. If things turn bad in your relationship, each spouse has the ability to clean out the account and take all the money, even if it was deposited by the other spouse. A joint account also prevents each individual from building up his or her own credit.
Joint bank accounts are easy to use because either spouse can access the money at any time to make payments. Even though both of your names are on the account, you don't need written permission from your spouse to access the account. This can be particularly helpful if one spouse is unreachable. Having your assets in one joint account can also make your financial lives simpler, as you do not have to track multiple accounts. A single joint account eliminates the possibility of having too much money in one account and not enough in the other when you need it, reducing the chance of an overdraft.
Disadvantages
One of the negatives of a joint account is that you might not always know what is in the account. Since both spouses have unrestricted access to the account, you could end up overdrawn if your spouse makes purchases and fails to tell you. If things turn bad in your relationship, each spouse has the ability to clean out the account and take all the money, even if it was deposited by the other spouse. A joint account also prevents each individual from building up his or her own credit.
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