Can anyone suggest a joint checking account?

[gravlax]

I recently got married (yeah!) and the new wife and I are considering a joint checking account. The purpose is twofold:

1) To buy groceries, shared dinner, housewares, etc.
2) To save a bit towards travel and purchase such as new furniture and things of that nature.

We are considering starting with about $700 in the account and then contributing $500 each for a total of $1000 per month. We'll end up spending a good portion of this, with the account balance probably only growing by $200 a month, give or take.

I plan on starting to poke around the internet searching in the next couple of days, but I thought I'd check in with my financial advisors (you) before doing so.

[HomeStretch]

Congratulations!

Consider opening a joint no-fee checking account at a local bank or credit union. It can come in handy for notary services, safe deposit box, local ATM, redeeming paper treasury bonds, etc.

[Ice-9]

Do you need a local branch for this checking account? Or are you OK 100% online?

If you are OK with an online account and don't mind a few simple hoops to jump through, take a look at Presidential Advantage Checking.

[egrets]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

[gravlax]

Do you need a local branch for this checking account? Or are you OK 100% online?

I'm trying to think of a reason we might need a local branch and I can't come up with anything, so I think 100% online would work for us.

[livesoft]

Where do each of you have checking accounts now? And what don't you like about them?

In any event, you and no one else should pay any fees for a checking account with its associated online free bill pay, free checks, free ATM, free everything.

If you can get everything free like I do, then I recommend WellsFargo.

[Tdubs]

Do you need a local branch for this checking account? Or are you OK 100% online?

I'm trying to think of a reason we might need a local branch and I can't come up with anything, so I think 100% online would work for us.

Ally Bank is perfectly fine if you go online. It will provide better interest than a brick and mortar bank. The only time you will regret it is when you need a Medallion signature for documents. Get over draft protection for checking because one of you will over draw at some point.

Congrats on marriage. Over time you will find the separation of your finances unnecessary.

[CardinalRule]

Where do each of you have checking accounts now? And what don't you like about them?

In any event, you and no one else should pay any fees for a checking account with its associated online free bill pay, free checks, free ATM, free everything.

If you can get everything free like I do, then I recommend WellsFargo.

We have a joint checking account at Wells Fargo, and also a joint brokerage account, and it has worked really well for us. We also don't pay any fees, other than a pesky and annoying Quicken fee of $3.00. DW and I also have individual checking accounts at Wells Fargo; we each contribute a percentage of our take-home to the joint account each pay period, and all of our bills are paid out of the joint account.

[rob]

Congrats... I would go against the grain and suggest two things... Just move all your accts to join (IMO this his/hers & shared expenses stuff is just noise you don't need any if you divorce it's all irrelevant anyway sans a strong prenup) and a local branch is useful for odd ball stuff - medallions, safety deposit boxes, small currency conversions etc. I'm a big fan of some internet banks but I always have a local one with day to day stuff - I also deposit pay checks as that can get you free accts.

[bob60014]

No judgement, just curious as to why a checking account for groceries, shared dinner, housewares, travel and new furniture? Most everything is done with a credit card nowadays, especially for points/rewards. In the last 15 years I think we've written 15 checks, mostly for gifts.

[arcticpineapplecorp.]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

1. presumably if there are two people who own something, they'd want to communicate to each other regarding that thing they own and or spend.

2. why would they be spending money on one person but not the other? It's a joint account. As in, for joint purposes. Not for individual purposes. Not that it has to be used that way, but the OP states the purpose of the account is for joint purposes (groceries, shared dinner, housewares, travel and purchase such as new furniture and things of that nature).

So how would one overdraw if they were using for joint purposes unless they weren't communicating those joint purchases to each other (see #1).

[terran]

Agree, Ally is good. If we kept separate finances I think we'd probably both open separate Ally accounts as well as the joint account so we could transfer between the separate and joint accounts instantly (and between the separate accounts nearly instantly with the joint account as intermediary). That's all theoretical though, as we don't keep separate finances.

[delamer]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

You communicate...

[Porfirio]

Congrats on the marriage!

My wife and I simply consolidated our individual accounts (both happened to be at WF) by adding each other's name. We made one of them the "primary" account where both of our work checks are deposited that we use for investments, daycare and credit card payments. The secondary one is for specific things (i.e. writing checks [when needed], the mortgage & student loans) to help me compartmentalize and keep an easy track record. It's been working for 6 years! We still write plenty of checks (although I probably do not have to, it's a preference I've developed long before meeting my wife).

As far as saving for furniture, travel etc. Recommend using SmartyPig.

Quick aside, we use our credit card (for reward points and the convenience of disputing charges if an issues arises vs. our debt card) for nearly all purchases.

[delamer]

We’ve received excellent service from USAA.

[22twain]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

We have only one checkbook for our joint account. It almost never leaves the house, and we keep it where both of us can get to it easily. We don't use it for personal expenses and cash withdrawals, because we have separate personal checking accounts. Utility bills are paid automatically by bank draft. Most other joint purchases (groceries, etc.) go on a joint credit card which is paid out of the joint checking account. We keep at least a couple months' cushion in the account, above the zero-fee minimum balance. We take turns replenishing it from our personal accounts, when it gets too low.

[Porfirio]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

You communicate...

Agreed...communication is key! A pre-determined amount should be a hard-stop for a conversation. It could be as low as $100 or as high as $10,000, etc. Depends on the couple, income, and spending practices.

[Doctor Rhythm]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

The converse is true for me; I always found it odd when married couples kept their finances separated.

In any case, almost all our expenses go onto credit cards (maybe write one check per month), so there would almost never be an unexpected withdrawal. We make sure the balance is high enough to cover the credit card bills, plus we maintain a decent buffer. As delamer said, you communicate if there’s a big ticket purchase. Also, it literally takes only 10 seconds to look up the balance and recent withdrawals, so no reason you’d ever be surprised.

The only time we open separate accounts is to take advantage of promotional bonus offers twice.

[BlackcatCA]

Agree, Ally is good. If we kept separate finances I think we'd probably both open separate Ally accounts as well as the joint account so we could transfer between the separate and joint accounts instantly (and between the separate accounts nearly instantly with the joint account as intermediary).

+1

However, if you are opening new joint account anyways, you may want to get a bonus while doing it. Wells Fargo for example has a $400 bonus for opening new account with a couple of direct deposits. Doctorofcredit.com usually has a list.

[Tattarrattat]

No reason to ever overdraft at Ally. Open a high yield savings and a checking account. Link them. Can keep a fair amount in their high yield savings, which is currently 0.8%, better than any brokerage money market and almost always a competitive rate. Keep about a month's worth of expenses in checking. If you occasionally happen to go over, the checking draws the overage from the savings account at no charge to you. Transferring between the two accounts to manage this is easy and instant with the well-designed app.

[cheese_breath]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

One checkbook, joint owners. DW would carry it in her purse. I'd get it from there if I needed it to write a check or update my spreadsheet, and then put it back. No need for two checkbooks. I'd never carry one with me anyway.

[CardinalRule]

No judgement, just curious as to why a checking account for groceries, shared dinner, housewares, travel and new furniture? Most everything is done with a credit card nowadays, especially for points/rewards. In the last 15 years I think we've written 15 checks, mostly for gifts.

How do you pay your credit cards? With something other than a checking account?

[Doom&Gloom]

I recently got married (yeah!) and the new wife and I are considering a joint checking account. The purpose is twofold:

1) To buy groceries, shared dinner, housewares, etc.
2) To save a bit towards travel and purchase such as new furniture and things of that nature.

We are considering starting with about $700 in the account and then contributing $500 each for a total of $1000 per month. We'll end up spending a good portion of this, with the account balance probably only growing by $200 a month, give or take.

I plan on starting to poke around the internet searching in the next couple of days, but I thought I'd check in with my financial advisors (you) before doing so.

For that I would just get the cheapest online checking account with decent service that people recommend. It sounds as if you will both be retaining your current individual checking accounts. That is what DW and I do--works well for us. Congratulations and good luck!

[basspond]

All of our accounts are joint. We used to keep two separate check registers but that was in the day when we wrote checks (one was actual, the other we would virtually transfer money to). Now most everything is paid automatically. We use Chase, but I am sure most other banks have similar services. One thing, with having one bank holding all accounts you might be able to avoid fees and getting extra perks by having a larger balance. We do have a checking account in our investment account for emergency/big purchase items.

[kbjeffrey]

My ex-husband and I have a joint checking account with Simple (an online bank). It has a set up where each of us has an individual checking account and we can each transfer money to and from the shared account. Each time you add or withdraw money you're asked to document what it is for. It has worked out well for us.

They also provide a savings account that is current offering $.79% and I am keeping some of my emergency fund there.

[gravlax]

No judgement, just curious as to why a checking account for groceries, shared dinner, housewares, travel and new furniture? Most everything is done with a credit card nowadays, especially for points/rewards. In the last 15 years I think we've written 15 checks, mostly for gifts.

Good question, maybe I mis-stated things. We're probably not going to be writing any checks against the account. I guess I meant more of a savings and debit card account. What I had in mind was that we'd both contribute and we'd both have a debit car on the account. When one of us buys groceries, or when we are out at dinner with friends, we use the debit card. If she wants to buy new earrings or I want to take up the trumpet, we use our individual cards.

[bob60014]

No judgement, just curious as to why a checking account for groceries, shared dinner, housewares, travel and new furniture? Most everything is done with a credit card nowadays, especially for points/rewards. In the last 15 years I think we've written 15 checks, mostly for gifts.

Good question, maybe I mis-stated things. We're probably not going to be writing any checks against the account. I guess I meant more of a savings and debit card account. What I had in mind was that we'd both contribute and we'd both have a debit car on the account. When one of us buys groceries, or when we are out at dinner with friends, we use the debit card. If she wants to buy new earrings or I want to take up the trumpet, we use our individual cards.

Don't use a debit card, ever! High risk for fraud and no protection for purchases.

[SquirrelEater]

I can vouch for a joint checking account. Wife & I have joint checking accounts (local bank + a Fidelity CMA) and two joint credit cards (Amex cash back for basics. Fidelity CC for non essentials). Joint taxable account too. If I could have a joint IRA I would.
We are also “on the same page” regarding finances.
We use credit cards for all purchases where reasonably able to. We communicate on larger purchases. Communication is to seek approval from the other on purchase - Does a great job minimizing those pesky “I need it now” dumb purchases that don’t add to our goals, doesn’t add quality of life, and clutters our home/life. Great example is a waffle iron. Who doesn’t want one!? really it is an item you get hot and heavy into at first then ends up never used again. So why purchase clutter for the closet/cabinets/pantry?
Credit cards ensure no NSF problems. One credit card is used for joint expenses and “baseline” expenses (ie gas, groceries, straight talk, etc.). The second credit card is used for items beyond the basics. Goal is zero activity on second credit card but that is never the case. Makes it very obvious what is being spent on non essentials. Second card is for things like hobbies, interests, new clothes, etc.
Through apps we can both see into & control the various joint accounts.
This system works very well for us.
Perhaps within your marriage there will be one person who will be dominate for managing the bills and payments. That makes paying the electric and mortgage easy & timely. Easier for resource allocations too (how much to investments, how much to retain, etc.).
After becoming married we eventually closed all “individual” accounts. There is no mine and hers - It is all ours. Including the debt! Collective resources pounds that out in a hurry.

Congratulations on the marriage and thank you for the marriage. Our nation/world/society is improved by marriage imho.

[gravlax]

I'm starting to think that a joint savings account and a joint credit card may be a better option for us. Use the credit card for most purchases, and then pay it off every month from the savings account.

[FrugalInvestor]

What's a check?

Seriously, we only use a check for those very occasional times when a vendor won't take a credit card or charges a fee for doing so. On the other hand, everything we have is joint with the exception of IRAs and HSAs which can't be. We consider ourselves a couple and we act and spend accordingly. We are accountable to one another because our futures are intertwined and interdependent. We retired very early and one very important factor was our shared vision and goals. I know that it's a somewhat antiquated way of doing things, but it has certainly served us well.

Now that I'm down off my soapbox, we use BofA because:
1) By having a minimum monthly auto deposit it's free
2) There are a lot of branches around us
3) My wife likes their billpay system, and
4) In case we need some cash from a (free) cash machine
4) In case we need a (free) notary or other service provided for free

[Tattarrattat]

We have everything joint, except IRAs. Essentially everything is paid with credit cards (2+% back) and almost the only thing paid with the checking account is the credit card bills themselves. Even pay the rent with a card. Makes no sense to pay anything directly from checking when that 2% back is free money for no effort - thousands of dollars a year. This scenario of course only makes sense if you pay your credit card bills in full every month.

[Invest4lt]

To keep things simple I would open up a new account at a financial institution where you already have individual accounts.

[UpperNwGuy]

To keep things simple I would open up a new account at a financial institution where you already have individual accounts.

I agree. There is no reason to waste a lot of time hunting for the perfect checking account. They're all basically the same (poor interest rates, no fees if you have a direct deposit, etc). Just open the new account at one of your existing financial institutions for the convenience of transferring funds and for the ongoing relationship with the banker.

[Doctor Rhythm]

I'm starting to think that a joint savings account and a joint credit card may be a better option for us. Use the credit card for most purchases, and then pay it off every month from the savings account.

So the idea is to have a new joint credit card (for communal purchases) paid from a new joint savings account funded by both of you, and presumably separate individual cards/accounts for "just for me" spending? I suppose that makes more sense, though I'm still not sure why this added layer of complexity is better than just putting all your money into one commingled pool. As an aside, you might find that your "just for me" spending drops off quite steeply now that you're married. I'd say less than 1% of our expenditures are clearly just for the buyer's benefit.

[wander]

Bank with Charles Schwab. It's a good bank.

[aristotelian]

We have joint checking only. Paychecks go straight into the account and cover expenses. Surplus at the end of the month goes into investments. I would ask the question the other way: why would you have personal accounts? The funds are marital property either way.

[camillus]

Fidelity
Schwab
Ally
Credit Union
BOA
Chase
Wellsfargo
Plenty of good banks.

My wife and I have 3 joint checking accounts.

An alternative to keeping separate accounts is using budgeting software that separates transactions into categories. YNAB, Mint, Everydollar.

This way, you can have one and only one relatively large joint checking account and have expenses from different cards being assigned to two discretionary spending categories, along with other household categories like groceries, rent, etc.

[invest4]

Get over draft protection for checking because one of you will over draw at some point.

Waste of money unless you simply don't pay attention.

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

A) There is rarely a reason to have to write a check anymore. However, you do sometimes actually need one.

B) Keep a sufficient amount of money so you don't have to worry or make sure you are talking to each other

I'm starting to think that a joint savings account and a joint credit card may be a better option for us. Use the credit card for most purchases, and then pay it off every month from the savings account.

Credit card is perfect.

If you do a checking / savings account, I have had good experience with Capital One 360.

Don't use a debit card, ever! High risk for fraud and no protection for purchases.

+1 Unless you lack discipline...no thank you to debit.

[GlennK]

I have a checking account at Capital One. It's convenient when I have to write a large check and transfer the money from their high rate savings account. Of course, they no longer try to keep the highest interest rate for their savings but I still maintain a balance there.

[virginiabirdie]

I have a checking account at Capital One. It's convenient when I have to write a large check and transfer the money from their high rate savings account. Of course, they no longer try to keep the highest interest rate for their savings but I still maintain a balance there.

I also have Capital One. They've really put a lot of money into their online interface. Their mobile app is actually great. (Ahem, looking at you Wells Fargo and BB&T!) Seamless and works every time. I deposit all my checks that way. And it's easy to move money between checking and their 360 high yield mm.

[ScubaHogg]

I’d go even simpler and just merge all your finances. Perplexes me when people don’t.

But to answer your question we’ve always used USAA. FYI if you are eligible.

[CardinalRule]

I’d go even simpler and just merge all your finances. Perplexes me when people don’t.

But to answer your question we’ve always used USAA. FYI if you are eligible.

I do not not know why it is so perplexing. Some people just prefer it that way.

For us, the so-called three-pot strategy makes perfect sense. The joint pot is obviously the big one, but we also like having our own money. Our approach is fine, and so is yours.

[Cruise]

No judgement, just curious as to why a checking account for groceries, shared dinner, housewares, travel and new furniture? Most everything is done with a credit card nowadays, especially for points/rewards. In the last 15 years I think we've written 15 checks, mostly for gifts.

Good question, maybe I mis-stated things. We're probably not going to be writing any checks against the account. I guess I meant more of a savings and debit card account. What I had in mind was that we'd both contribute and we'd both have a debit car on the account. When one of us buys groceries, or when we are out at dinner with friends, we use the debit card. If she wants to buy new earrings or I want to take up the trumpet, we use our individual cards.

I'm curious why one would get married and want to separate their finances? Wouldn't both of your income streams go into a joint account from which you would both have access?

Do you folks not trust each other, or is there some other reason for not commingling your income and expenditures?

[Doctor Rhythm]

I'm curious why one would get married and want to separate their finances?
...
Do you folks not trust each other, or is there some other reason for not commingling your income and expenditures?

Might be something like “All right, fine, you can have an ocelot, but you’re paying for the fresh meat and the panic room.”

[GenawithanE]

There are many ways to handle joint finances. This is the first and IMO most important hurdle to a long successful marriage - talk through your goals and approaches and concerns and make joint decisions. I had parents where my dad questioned every penny my mom spent, to the point where she hid purchases. So, when we made our plan 36 years ago, we each had a checking account and split the joint expenses, and the remainder in each person’s account was theirs to spend without commentary by the other. We fulfilled our savings and investment goals and have literally never fought about money.

[Dottie57]

I have never understood how joint checking accounts work. What happens if someone needs to write an unexpected check, and the other person then inadvertently overdraws.

The person who has the checkbook in hand has control.

In current times if ATM is used, tell person with checkbook immediately.

My parents had 1 checking account between them. There were NO problems (besides mom’s complaint on dad’s handwriting). If one bought a present for the other the description was “monkey business” or similar. They were careful on spending.

[EvanRude]

While we have simplified to one joint checking in retirement, for many years we had 2 joint accounts - one hers, the other mine - at the suggestion of an Episcopal priest’s pre-marriage counseling. That gave each spouse flexibility and some independence. We divided household bills based on the different incomes.

[rob]

All these people that don't write checks... how do you deal with the schools... I write checks for the schools all the damn time... fee for x, film for photo class, books on book day and on and on.... If I remove them... It's maybe once in a while.

[FrugalInvestor]

All these people that don't write checks... how do you deal with the schools... I write checks for the schools all the damn time... fee for x, film for photo class, books on book day and on and on.... If I remove them... It's maybe once in a while.

We kicked the kid out of the house when he was 21 (and he turned out to be very responsible and self-sufficient) so no more school stuff for us and he takes care of the grandaughter.

[HomeStretch]

Very few companies issue joint credit cards (I believe BofA does). Others offer a card where one is “primary“ and the other is an “authorized user”. Be sure each of you has at least one card where you are “primary” to continue maintain a credit history.