Our Pick Of The Best Joint Bank Accounts

A joint bank account is an account that can be accessed by two (or sometimes more) people. Joint accounts can include transaction accounts, savings accounts and term deposits.

Life partners, new couples, family members or friends might open a joint account to combine their money or provide access to funds. It’s not designed for business partners: they’ll need to open a business bank account that allows multiple signatories.

In what situations might a joint account be useful?

• People moving in together that want to cover shared living expenses.
• A married couple who want to minimise their banking fees and admin costs.
• An adult daughter who pays her elderly dad’s bills via online banking.
• Parents looking to monitor the spending of a teen’s allowance.
• Two good friends saving for an overseas trip they’re planning together.

However, you don’t need to be married, be related, or live at the same address to open a joint account with someone.

You should only open a joint account with someone you trust — because in the eyes of the bank, the cash held in a joint account belongs to all account-holders equally. But it doesn’t have to be a free-for-all. You can choose to require each transaction to be authorised by both account-holders, to keep each other accountable.

“Some joint accounts require both people to sign to access it, or you can opt to just need one person’s signature. It’s important to consider what’s best for your situation,” Kresina explains.

You can’t open a joint account on someone else’s behalf, even if you’re their legal representative or you’ve been given power of attorney.

What to Discuss Before Applying For a Joint Account

Kresina said it was important to speak to the other account holder about how the money will be saved or spent.

“Is it used to divide expenses? Or for setting up goals? Will you both have access? It’s always worth talking to your partner about the goal of the account and how it will be used,” she advises.

Before you apply it’s wise to reach agreement on:

• How much you’ll each deposit, and how often? Fees may be dependent on meeting minimum deposit balances each month.
• Whether you need to set a monthly spending limit or create a budget beforehand to avoid overspending?
• Who’s going to be responsible for ensuring bills or other shared expenses are paid on time, or automatic payments are set up?
• Which expenses are valid reasons for withdrawals? Let’s say it’s a rainy day savings account — what unexpected costs does this cover?
• Whether both people need to authorise transactions via the bank’s systems, or if you’ll informally check-in with each other, e.g., ‘let’s talk before making any purchases over $200’.
• How will you stay aligned? Kresina recommends you set up a regular time to review your transactions and discuss your spending and long-term goals.
• Whether you’ll both maintain your own separate bank accounts as well? “This can allow for you to have joint goals while continuing to have autonomy over your own finances,” Kresina said.

To avoid mistrust or resentment that can harm a relationship, it’s especially important for romantic partners to be upfront about how finances will be divided.

“For example, some couples split expenses 50/50, while others opt to divide their expenses based on the percentage of their income (having the higher income earner pay a higher percentage of the expenses),” Kresina told ForbesAdvisor.

“Whereas others pool all their money or do a combination of each,” she said.

Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.

Here are our top 5 five picks for joint bank accounts in alphabetical order:

Here’s what we looked for to determine the best joint bank accounts in the Australian market right now:

• A reputable financial institution that has been recognised (industry awards, customer ratings) as having reliable products and quality customer service.
• No account-keeping fees or fees on basic transactions such as online banking, paying bills, eftpos and card purchases within Australia.
• For savings accounts, the interest rate on offer is at the higher end of the competitive range to help account-holders boost their savings.
• Minimal conditions, or non-onerous conditional requirements to receive a higher interest rate or other useful benefits.

There are benefits and risks to sharing access to your money. Here are the major pros and cons to consider before opening a joint bank account:

Pros

• Easily manage household finances: Life admin can be time-consuming. Consolidating and simplifying your finances can help ensure you’re on top of paying the bills, paying fewer bank fees, and have better visibility of your family’s financial situation.
• Achieve a savings goal sooner: When you open a joint account, it becomes easier to work together towards your shared financial goal. Because you’re both contributing, savings accumulate faster, which can motivate each person to stay on target.
• Improve transparency and trust: Joint accounts, says Kresina, “…allows both parties to be on the same page, to talk openly about money and to have transparency about spending.” She says that can reduce financial stress and set a couple up for long-term success, given that finances are one of the leading causes of divorce.

Cons

• Discipline is required: You’ll need to be more disciplined about reviewing account statements to stay aligned on spending and saving. This could lead to some difficult conversations about what you both value, and what you’re willing to sacrifice for your goals.
• Increased financial risk: If the other account holder is dishonest or terrible with money — you’ll feel the blowback. Obviously, all your cash could be cleaned out. Or, your partner could overspend leading to defaulting on payments that then affects your credit score and borrowing capacity.
• Can be a tool for financial abuse: Joint accounts open the door for one person to limit or monitor their partner’s access to money — or make financial commitments they’re not comfortable with— which can be part of a pattern of abusive behaviours known as coercive control.

Kresina points out that the risks of a joint account means it may make sense to have some of your own money in a separate account, in case the relationship fails.

“No one wants to think about separation or divorce, but it’s always worth having money on the side if it’s urgently needed,” she said.

“If there are any red-flags in your relationship, and you and your partner have very different financial goals and values, it may be worth reconsidering joint accounts.”

If you or someone you know may be experiencing coercive control, you can get confidential support and advice from 1800RESPECT (1800 737 732).

The top factors to compare as you research joint bank accounts include:

• Account fees: You want to choose a joint transaction account that has no account-keeping fees, or fees associated with daily transactions using your preferred banking methods.
• Availability of cards: Check that you’ll both receive a debit card or digital card (for use via a digital wallet) linked to your transaction account.
• Interest rate on savings: How much your savings accrue over time can make a big difference. “One of the most important things to look for in a joint savings account is the interest you can earn from the account,” according to Kresina.
• International fees: Ideally, you’ll pay no or low fees on international purchases, no transfer fees on payments to someone overseas, and no international ATM withdrawal fees if you travel often.
• Ease of access and use: How easy is the banking and app to navigate? “If you do most of your banking on-the-go, it’s worth considering the app and ease of use,” Kresina suggests. Also consider the bank’s cybersecurity measures.
• Extra perks: Cashbacks and promotions are typically one-offs, or conditional so make them a lower priority. An attractive cashback could be a reason to choose between two similar products on your shortlist.

Keep in mind that to open a joint savings account, many banks will require that you first open a transaction account with them.

Kresina told ForbesAdvisor that while it’s generally easier to open a joint account through your existing financial institution — you might not get the best product for your needs.

“There are many joint savings accounts that may be better suited with a higher interest rate than your bank provides. This can help you save for your goals quicker.

“It’s worth being aware of any requirements that need to be met to obtain the high interest rate. Some banks want you to either transfer money in or to spend a certain amount a month in order to access the high interest rate.”

To open a joint bank account in Australia, both applicants will need to meet the conditions set out by the bank. At the very least each person may need:

• An Australian residential address and mobile phone number;
• Proof of your identity such as a birth certificate, Medicare card, driver’s licence, or passport;
• Your tax file number, if the account earns interest; and
• To meet the bank’s minimum age requirement (12 to 18 years old depending on the financial institution).

The process for applying for a joint account varies by bank. In some cases you’ll need to visit a branch in person together. But many banks let you apply online: typically one person can start the application and then invite the second person to complete their parts.