Joint Accounts has got its own pros if you use it wisely. If you are thinking of how to use a joint account with your spouse, this article is a good guide on how to set up a joint account.

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Is Joint account really for me?

An account is called a Joint account when two or more people have got equal access to a bank account and the money in it. You have to keep in mind the following things before considering opening a joint bank account.

1. Joint account is perfect for couples who are both earning

If both the joint account holders are earning, then a joint account is perfect for them. They can each deposit part or whole of the money to the account. But if either of the joint account holder has a careless spending habit then the repercussions will be applicable for both.

2. Joint account can be used for common household expenses

The best way to use a joint account is for household expenses. Sit down and discuss with your spouse on how much your estimated monthly expenses are. Then decide how much each account holder should contribute to the account. It is not necessary that each party contribute equal amount if they are having different salary ranges. But each should contribute equal percentage in most of the cases. Also please see point 5.

3. Divert only part of your earnings to the joint account

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Always try to keep minimal amount of money in joint account. If you are getting a regular pay electronically, then check with your payroll team whether they have the provision to divide the amount into two different bank accounts. If not, you have the option of taking a specified sum from your main account at a particular day of the month and put it into the joint account. Talk to your bank regarding this option. You can also set it up online in most of the cases.

4. Never put your savings in your joint account

In most of the cases, try not to put your savings in a joint account. Maintain a different account for the same. This is true for most cases. However if there is good understanding between both the account holders, and if they are saving for a common goal, then joint account is the perfect place to save. This is true in the case of married couples saving for a home. But in other cases like room mates saving for a car, it is not advisable to use the common account