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Joint checking accounts are a great option for anyone who wants to manage everyday spending with another person — whether it’s a spouse, an aging parent or a child. In some cases, joining checking accounts have been specifically designed for two owners, especially ones made for kids and parents to share, while other standard checking accounts have appealing fee structures and benefits that make them equally great options for sharing with someone.
Here are Bankrate’s picks for the banks with the best joint checking accounts.
Best joint checking accounts
Note: Annual percentage yields (APYs) shown are as of May 2. Bankrate’s editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
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Ally offers the perks that come with online-only banks — above-average interest rates, minimal fees and robust tech features — and the bank’s Spending Account is a great option for merging finances. If you keep a bigger balance in the account, you’ll score a higher APY — 0.25 percent on balances $15,000 and above — but you can still get 0.10 percent APY on lower balances. If you open a savings account at the bank, too, you can take advantage of a round-up tool to encourage savings for you and your joint account holder. The tool rounds up the change from purchases made with your debit card and deposits it into your savings account. And the savings account earns a strong APY.
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- No monthly maintenance fees.
- No overdraft fees; you can get an overdraft covered two ways: by a transfer from a linked savings or money market account or with Ally’s CoverDraft, which covers up to $250 in overdrafting transactions for qualifying accounts.
- You’ll earn some interest on all balances.
- In addition to fee-free access to over 75,000 ATMs to pull out cash, you’ll also get up to $10 of out-of-network ATM fee reimbursements per statement cycle.
- Ally offers budgeting and savings tools.
- Early direct deposit is available.
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- Ally does not accept cash deposits. If you and your joint account owner plan to regularly deal with cash, this isn’t the place for you.
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Capital One 360 Checking offers the flexibility and perks of an online bank along with the option for in-person support at Capital One branches or cafés in some select states (mostly on the East Coast and in the South for branches and in the Western states for cafés). You’ll also earn 0.10 percent APY on all balances. Unlike many online banks, Capital One offers the ability to deposit cash (and won’t charge you for the privilege) so if you or your co-owner deal with cash a lot, this could be one of the better options.
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- This account has no monthly fees, no minimums, and access to over 70,000 fee-free ATMs.
- You’ll earn a small amount of interest on all balances.
- There are free overdraft protection options, such as free transfers from a linked savings account.
- Early direct deposit is available.
- You get one free order of checks.
- Fee-free cash deposits are available.
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- To open a joint checking account, you’ll need to first open an individual checking and then add a joint owner. At other banks, you can open a joint account immediately.
- Capital One 360 doesn’t charge you a fee for using an out-of-network ATM but it won’t reimburse you the ATM fees charged by the ATM owner.
- Cash deposits are available but can only be made at Capital One ATMs or at any CVS or Walgreens. This might not be convenient if you frequently handle cash.
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Chase can’t compete against the other names on this list when it comes to paying interest and offering checking rewards, but it does offer one potentially big benefit: a huge network of branches and ATMs. If you and your fellow account holder value access to in-person banking, the biggest bank in the country is worth a look. Plus, you can probably score a bonus for opening a new account.
Unlike at many of the other banks on this list, you will pay a fee for overdrafting but Chase does offer some flexible overdraft protection. All checking accounts, regardless of whether they enroll in overdraft protection, can overdraw by less than $50 for free.
But keep in mind that there is a $12 monthly fee for this account if you don’t meet the requirements to waive it.
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- More than 4,700 branches and more than 15,000 ATMs for cash deposits, along with a sophisticated mobile app with built-in budgeting tools.
- Flexibility to overdraft by less than $50 for free.
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- No interest and a $12 monthly fee if you fail to make electronic deposits of $500 or maintain a balance of at least $1,500.
- If you enroll in overdraft protection, you will be on the hook for an $34 overdraft fee if you overdraft by more than $50 and remain overdrawn by that much by the end of the next business day. And Chase can charge you that $34 fee three times a day — so you’re risking $102 a day in overdraft fees.
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Discover’s Cashback Debit checking account gives 1 percent cash back on up to $3,000 in debit card purchases each month. If you and your joint owner are heavy debit card users, that means you can earn up to $360 in cash back every year. To help manage your money, the account offers free cash deposits at Walmart locations and fee-free overdraft protection. These features make this checking account a good option for managing joint finances.
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- There are no monthly fees, no minimums and access to over 60,000 fee-free ATMs.
- You’ll earn 1 percent cash back on debit card purchases, up to $360 per year.
- Fee-free cash deposits are available.
- Free overdraft protection.
- Early direct deposit is available.
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- You can’t deposit cash at ATMs. Cash deposits are only available at Walmart locations.
- If you and your joint owner don’t use your debit card often throughout the month, you could be better off with a different account that earns interest instead of cash back.
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Appropriately named, the NBKC Everything Account combines checking and savings into one product that pays 1.75 percent APY on all balances. There’s also a savings goal-setting tool, which is valuable for couples. If you’re planning a big spring break vacation together, it’s a way to keep both of you on track (though you could earn a higher APY on savings elsewhere). You’ll get a lot of the same features here as you do at other online banks, such as no fees, no minimum balance requirements and early direct deposit.
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- For checking balances, the 1.75 percent APY is high and especially good because there are no requirements to earn it.
- No fees, no minimum balance requirements and access to over 90,000 fee-free ATMs (with reimbursements for out-of-network charges, too).
- Early direct deposit is available.
- The account offers savings and budgeting tools.
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- 1.75 percent APY on your checking is a great APY, but you can earn more on your savings with a high-yield savings account or even with the bank’s money market account, which currently pays 3 percent APY.
- Combining “everything” in an everything account can get messy if you and your joint owner aren’t careful. In many cases, it’s smart to keep a defined line between your spending and your saving accounts.
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SoFi’s Online checking account automatically takes the next step in sharing finances for you: You also open a joint savings account at the same time. The checking account pays up to 0.50 percent APY — a competitive offer in today’s checking landscape — while the savings account pays up to 3.80 percent APY, which is a strong savings rate (though you can find higher elsewhere). Note that you have to have direct deposits set up or receive a certain amount of other qualifying deposits to earn that savings rate.
Like at Ally, you can take advantage of a microsavings feature that automatically transfers change to the nearest dollar with every debit card transaction to the savings account. If you and your joint account owner use your debit cards often, you could kickstart a savings habit this way.
This account offers a lot of the same perks as other accounts on this list: early direct deposit, no monthly account fees or minimum balances, large fee-free ATM network and no-fee overdraft coverage.
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- There’s no monthly account fees or minimum balances.
- Over 55,000 fee-free ATMs.
- Early direct deposit is available.
- Savings features, like roundups, to help grow your savings.
- Fee-free overdraft protection for transactions that put you up to $50 in the negative.
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- You can’t have an individual and a joint account at the bank at the same time — you’ll have to choose one or the other.
- The bonus offer is impressive — up to $300 — but you’ll need to arrange a direct deposit of at least $5,000 during the qualifying period. You’ll earn $50 with direct deposits of $1,000 to $4,999 but if your direct deposits amount to less than $1,000, you won’t earn a bonus at all.
- Strong savings APY only available with monthly deposits of at least $500. You can find a high-yield savings account with a higher APY and fewer requirements.
- Cash deposits are available through the bank’s partnership with Green Dot, but they’ll cost you up to $4.95 and are only available at participating retail locations within the Green Dot network.
Best joint checking accounts for kids and teens
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Alliant Credit Union’s Teen Checking Account is a great fit for parents who want to be a member of a credit union and introduce their teen to the basics of budgeting. The account is available for teens aged 13 to 17 and will earn 0.25 percent APY if you meet the requirements. If your teen has a job, they’ll be able to see their paychecks in their account a few days early.
To make sure nothing goes awry, the adult on the account gets full access to be able to track spending from the account. The account comes with somewhat of a rarity — free checks — to help your kids learn about the old-school method of writing and signing checks.
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- No monthly maintenance fees.
- Free checks.
- Massive fee-free ATM network (and up to $20 in reimbursements for out-of-network fees).
- You’ll earn 0.25 percent APY if you can meet the requirements.
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- You and the joint owner will need to become members of Alliant before you can open an account. But Alliant makes that easy — ownership is open to anyone.
- You need to opt out of paper statements and set up a recurring direct deposit or transfer to earn interest.
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Axos Bank provides a teen joint checking account called First Checking designed to introduce money management skills to kids aged 13-17. To help with responsible account usage, the account offers spending controls and daily transaction limits ($100 for cash and $500 for debit transactions).
First Checking also pays 0.10 percent APY on your balances, which isn’t much but it is something.
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- There are no monthly maintenance or minimum balance requirements.
- You’ll get up to $12 in monthly domestic ATM fee reimbursements.
- There are no overdraft or non-sufficient funds fees.
- The account comes with parental oversight tools.
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- If your teen has a part-time job, they won’t see their paycheck early in this account. This isn’t a huge con, but it’s something to note.
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Capital One’s MONEY Teen Checking Account is a great option for parents who want to help kids who are at least eight years old begin to understand how to manage their money. Each party gets login credentials, and parents have control to lock the debit card if it’s lost (or if the child happens to be overspending). The child is the only one who receives a debit card — not the parent — so this account is designed to help kids learn more about money.
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- There are no fees or minimum balance requirements to open the account.
- Parents can track spending from the account and lock the debit card, if needed.
- Money in the account will earn a little bit of interest — 0.10 percent APY.
- No foreign transaction fees, for if your kid takes a trip abroad.
- The adult co-owner does not have to have a Capital One account to open this account for their teen.
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- Your child can send money via Zelle if you enable the feature. Since Zelle transactions cannot be canceled, you need to be mindful of making sure they don’t send cash to the wrong person.
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The Connexus Credit Union Teen Checking account is another good option for parents who want to enjoy the benefits of banking at a credit union for themselves and their kids aged 10-17, who are eligible for this account. The account offers a competitive 2 percent APY on balances up to $1,000 and still pays 0.25 percent APY on balances above $1,000. Account holders get a Visa debit card but there aren’t any parental controls or spending limits on the account unless you request them by calling the credit union.
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- There are no monthly maintenance fees.
- The account pays a healthy APY on smaller balances.
- Unlimited free transactions at more than 67,000 ATMs.
- No fee for ACH transfers, checks or bill pay that overdraw the account by less than $10.
- Free overdraft transfers from a linked savings account.
- There are no advertised spending limits for this account but if you call the credit union, you can ask a customer service representative to set a limit allowed for debit card transactions and ATM cash withdrawals.
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- No reimbursements for out-of-network ATM fees.
- APY is lower for balances over $1,000.
- Membership requires a one-time $5 donation to the Connexus Association, though there are ways to join for free, including being a family member of an existing member.
- For ACH transfers, checks or bill pay that overdraw the account by more than $10, you’ll pay a fee of $18 if the credit union covers the transaction and $4 if they decline it.
Why should you open a joint checking account?
Opening a joint checking account can be a valuable step toward managing money with someone else. In some cases, that might be a significant other or spouse who you are working with to save money, manage expenses and budget for the future. In others, it might be a child or teen who you want to help understand the basics of banking. In any case, joint checking accounts offer a way for both parties to have access to the funds.
“Opening a joint checking account allows for joint fiscal management between individuals,” says Michelle Smoley, director of personal and college finance at Bright Horizons College Coach. “This can be beneficial for spouses, parents with young adult children and adults with aging parents.”
“For spouses and partners who cohabitate, joint checking accounts can help streamline household bills and payments. Joint ownership also allows immediate access to the account funds should one account owner pass away or become unable to take care of their finances.”
Risks of having a joint bank account
Joint bank accounts have their pros, but they’re not for everyone and you should know the risks of joint account ownership: either owner can legally withdraw all the money in a joint account at any given time. If this happens to you, you could sue in small claims court to get the money back, but how much, if any, will be awarded back to you will vary.
Requirements to open a joint checking account
Opening a joint checking account feels similar to opening an individual checking account, but instead, you’ll need to share personal details — name, address, date of birth, phone number, email address and Social Security number, for example — for both parties on the account. Depending on the institution, you may need to be able to meet a minimum opening deposit requirement.
What to look for in a joint checking account
When you’re comparing joint checking accounts, make sure you’re considering these key features:
- Fees: Some banks charge monthly service fees if you fail to meet certain requirements. However, it’s easy to avoid these pesky costs by focusing your search on free checking accounts.
- Flexible overdraft policies: With two people spending money from one account, you might find that overdrawing becomes an issue, at least until you get the hang of things. Find an account that has forgiving and flexible overdraft policies to avoid fees.
- Budgeting tools: In many cases, a joint checking account is the first step toward marrying finances. With that in mind, it’s smart to find a bank that includes helpful mobile tools to manage your monthly budget. Some banks also offer useful round-up features to link the account with a savings account to store cash for the future. If you’re married — or planning to make that major life decision down the road — that early effort to save can lay the foundation for successful money management.
- Perk opportunities: Banks want your business, so shop around for opportunities to earn interest on your money, cash back or even a bonus that can score you a few extra hundred bucks with your new account. If you can get $200 or $300 for setting up direct deposit, that’s free money to help you cover some expenses.
- Safety: Make sure that whatever account you open, it offers protection to you in case of a bank (or credit union) failure. That means finding a bank that’s insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union that’s insured by the National Credit Union Administration (NCUA).
Pros and cons of joint checking accounts
Pros
- Limits the need for constant transfers between individual accounts
- Offers a chance to create a shared budget
- A helpful step in understanding a partner’s approach to money
- Helps children learn money management skills
Cons
- Can lead to arguments over spending patterns
- Limits one’s sense of financial independence
- You’re giving full access to all the money to the joint owner, which means they can withdraw it all without asking you
Joint checking account FAQs
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Yes. Joint accounts — just like individual accounts — may pay interest. It’s up to individual banks and credit unions to determine whether an account earns interest.
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Many banks and credit unions use bonus offers to attract new customers, and these promotions may vary throughout the year. As you compare options for joint accounts, do your research to compare offers for bonus cash. In most cases, you’ll need to perform some sort of qualifying activity to qualify such as setting up a direct deposit.
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Overdraft protection is an optional service that many banks and credit unions offer that authorizes transactions that would put your account in the negative. Some overdraft protection programs link a customer’s checking account with a savings account or a line of credit. If the balance of the checking account drops to zero while trying to make a payment, funds from the linked account will automatically transfer to make sure that the transaction clears. Some banks may charge for these services, though there are ways to avoid overdraft fees.
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Call the bank or credit union to learn about their policies for making changes to accounts. In some cases, you may be able to remove your own name from the account. In others, the two account holders may need to close a joint bank account entirely and set up individual accounts. Because both names are on the account, you’re both legally entitled to the funds, which can create some challenges in attempting to remove one name.
Research methodology
Bankrate researches and reviews over 100 banks, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.
To find the best joint checking accounts, we looked at which of our highest-rated checking accounts allow joint checking as these accounts are equally great options for sharing with someone as they are for an individual. Most of the highly-rated checking accounts were from online-only banks, so we also included Chase as an option for those with a joint owner who may not be comfortable banking online and wants access to a brick-and-mortar bank. We chose Chase as it has branches in 48 states and Washington, D.C.
To find the best joint checking accounts for kids and teens, we looked at which of our broadly-available banks and credit unions offered an account specifically for kids or teens. Then, we looked at the features each one provided, such as APY and parental controls and spending limits, to determine which accounts were best for kids and teens to use and learn money management skills.
Learn more about how we choose the best banking products and our methodology for reviewing banks.
Read the full article here
