How a joint account can make managing shared expenses easier

If you’re sharing expenses, money goals, or a budget with another person, it might be time for a joint account. We’re big fans of earning, so it comes as no surprise that we would suggest an account that offers the flexibility of a chequing account and the interest of a savings account. The EQ Bank Joint Savings Plus Account offers all of this, without monthly fees.

While a joint account acts much like an individual account, the difference is that it’s shared by two or more people. Opening a joint account means all account holders will have equal access to its funds – giving them the ability to withdraw the entire balance. Needless to say, it’s important that the decision to open one is made intentionally with those you truly know and trust.

So, what’s the right situation for a joint account? Let’s get into some common scenarios, and maybe some you haven’t thought of!

When does it make sense to open a joint account?

Spouse or live-in partner – When most of us think of joint accounts, sharing one with a spouse likely comes to mind. Couples tend to have a lot of shared expenses, so a joint account may make good sense in this case. It’s also an effective way to contribute to mutual savings goals, like a house, trip, or new appliance! An added bonus? If you’re trying to be more open with your partner about money, a joint account is a good way to jump start that conversation.

Roommate – Nope, you don’t have to be in a romantic relationship to have a joint account. Instead of chasing your roommate for rent every month (or remembering to pay rent yourself) set up an auto transfer from your main account to your joint account to ensure the rent and utilities are always paid on time and in full. If you share other expenses like groceries with your roommate(s), you can pool funds in your joint account for that, too!

Student – Let’s face it – managing finances as a student (and parent!) can be challenging. If you’re helping support a post-secondary student, consider opening a joint account with them. This can be an effective way to track their expenses and see when they need a top up for textbooks (or something a bit more nutritious than ramen).

Travel – Planning a trip with friends or family? Chances are there will be some shared expenses in the mix. Why not set a group savings goal in advance and set up auto transfers each week or month to go into the joint account? By the time your trip rolls around, you could have enough for a fun excursion or fancy dinner. And in that time, your funds have had the time to accumulate interest.

Income property – If you own a rental suite, you know first-hand there are a lot of financial moving parts to oversee. Life gets busy, and if you manage these expenses with a partner, it’s important to ensure you’re on the same page with shared expenses. With a joint account, you can track any expenses pertaining to your rental unit with ease, and not need to ask if the plumber got paid for fixing that sink leak last month.

Added benefits of a joint account

• The EQ Bank Joint Savings Plus Account pays interest. That’s right! Our joint accounts come with the same high interest rate our Savings Plus Account does, so while you’re merging your money, you’re earning on every dollar. If you really want to level up your earnings, why not transfer five or ten dollars extra when you’re sending over your half of the mortgage payment? You’ll have an additional cushion building interest without lifting a finger.
  
  
• You’re not married to a joint account. ‘Til death do us part isn’t necessarily for bank accounts. Spoiler alert - your financial needs will evolve over the years. A joint account could fit your lifestyle now, but if a year from now you don’t need it anymore, it can be closed. An EQ Bank Joint Savings Plus Account can be closed by one account holder, as long as the balance is at zero dollars.
  
  
• A joint account does not have to be your only account. With EQ Bank, you can open up to five separate accounts, so your joint account can operate as one piece of your overall banking strategy. Here’s one example of how you can set up multiple accounts for success.

The bottom line? A joint account can be a helpful addition to your existing suite of banking products. In every case, having an open, honest conversation about finances is a good move before opening a joint account. Each account holder should be fully aware of the expectations and responsibilities pertaining to the funds in the account.

Already an EQ Bank customer? Set up a joint account in a few clicks and start earning more on your joint funds. Not yet a customer? Signing up for a new account is quick and easy.