How to Manage a Joint Bank Account

Most engaged and married couples will open a single joint checking account to pay for family expenses and bills. The key to successfully managing a joint bank account is accurate records and communication. With more than one person depositing and withdrawing funds from the account, it is vital that each party knows what is in the account at all times to avoid overdraft charges from occurring.

• Make sure that both parties on the account have an open line of communication. All expenses should be discussed as well as the amount of any upcoming deposits so that the bills of each spouse can be budgeted into the balance on the account without incurring any overdraft fees.

• Keep accurate records of both income and expenses in the checkbook of each account holder. It is very important that both parties maintain accurate records of all withdrawals, checks  written and deposits so that each both checkbooks can be balanced against each other to determine the accurate amount in the account.

• Determine if either you or your spouse has any past credit problems that may cause a problem with the account. If the two parties on the account are married, then a creditor can withdrawal funds from the account of both parties to pay off a previous debt of the other party. Spouses should discuss past credit problems that may cause a problem within a joint checking account ahead of time so that a problem does not arise later on.

• Trust the other person with all finances, and expect the same in return. You and your partner must establish a certain level of trust to open a joint checking account where the income of both parties is combined.