Should Couples Have Joint or Separate Bank Accounts? (2024)

Should Couples Have Joint or Separate Bank Accounts? (1)

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Should Couples Have Joint or Separate Bank Accounts?

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ByJordann Brown

Fact Checked:Romana King

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Updated:January 30, 2024

We adhere to strict standards of editorial integrity to help youmake decisions with confidence. Please be aware that some (orall) products and services linked in this article are from oursponsors.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware this post may contain links to products from our partners. We may receive a commission for products or services you sign up for through partner links.

When a couple commits to a life together, the decision on how to merge money is often overlooked. It’s easy to seewhy since few of us enjoy sorting out how to split bills or figuring out the best joint bank account to open.

For most couples in Canada, combining finances means opening a joint bank account. This shared account is thenused to pay bills, such as hydro or rent, and cover regular living expenses. For others, combining finances can alsoinclude saving for future goals — using a joint savings account — or multiplying points or cashback using jointrewardcredit cards.So, how should couples decide? And is it truly better to keep a separate bank account or mergeyour financial lives using a joint account? The answer depends on your individual and collective goals and the bestapproach to your family’s needs. Here is a simple guide to help you and your partner determine whether or not tokeep separate bank accounts or merge and open a joint bank account in Canada.

What is a joint account?

In Canada, a joint bank account is a savings or chequing account opened by two or more people. Having both (orall) names on the account gives each person equal access to the joint bank account and the funds held inside theaccount.

How to open a joint bank account

Opening a joint bank account in Canada is the same as opening a regular savings or chequing account, with manytraditional banks now offering the convenience of online-only or online-first applications. (For a guaranteed online-only process, check out digital banks,EQ Bankor Simplii.)

Pros of opening a joint bank account

Opening a joint bank account in Canada has many benefits. Sharing a joint account lets each spouse accessmoney when needed without having to clear the purchase through their partner first.

From a workload perspective, the best joint bank accounts make it easier to split financial chores. For instance, onespouse may oversee paying bills while the other reconciles the monthly credit card statement. When both spouseshave equal access to the money, it is less likely that a single partner will take on all the financial managementtasks.

But convenience isn’t the only benefit of a joint bank account in Canada. Legally, a joint account protects bothspouses should an emergency arise. This is particularly important if you or your spouse become ill or die. Without ajoint account, the surviving spouse must go through probate before being granted access to the funds in any bankaccount that is not a joint account.

Finally, joint accounts can increase financial accountability. This is a big deal, according to the TD Bank Love &Money survey, where more than a quarter (28%) of Canadians admit to keeping a financial secret from their partner.It’s more difficult to conceal financial problems if both spouses have access to the money and transactional historyin a joint account.

Drawbacks of joint bank accounts

Managing your money through a joint account simplifies daily financial tasks but can also take away a sense ofcontrol or autonomy. If a couple chooses to combine their finances, a spouse may feel they have no control overthe money they earn — and spend — because it all goes into one account.

These feelings are especially common in the first few months of merging finances. Transitioning from having totalautonomy over your money to having another set of eyes reviewing your spending and saving decisions can be ahuge adjustment. But don’t worry. This feeling of lost autonomy is normal and can be remedied by setting aside amonthly allowance that each spouse has singular control over.

Joint accounts can also cause trouble in a relationship, especially if there are communication problems.Since you’ll need to keep track of the money going in and out of joint accounts, consistent and clearcommunication is key. Otherwise, you may overdraw the accounts, which can cause money arguments.

Finally, problems may also arise when a relationship ends because joint accounts can be messy to separate. Somespouses may even be vindictive – emptying and closing accounts without permission from their soon-to-be ex-spouse. Plus, it can be risky to keep the bulk of your money in a bank account where your soon-to-be-ex hascomplete access to the funds.

Benefits of using separate bank accounts

Separate accounts do not mean one spouse is any less accountable than the other. It just means you’ll approachsaving and spending a little bit differently.

Maintaining separate bank accounts usually means splitting the monthly bills equally and saving separately forfinancial goals like retirement planning and emergencies. You’ll each pay off your debts, and big goals like savingfor a down payment are done separately and combined just before you’re ready to make the purchase.

Some couples choose a hybrid approach with a joint chequing account for shared expenses like rent and grocerieswhile keeping all other spending and savings separate.

Setting financial goals as a couple

Deciding between separate or joint accounts is not easy, and what works for one couple may not work for others. Ifyou’re struggling to decide which approach will work for you, try asking yourself the following five questions:

#1: How will we pay off debt? While definitive answers aren't required, it's important to understand how you will payoff debt. Will you work together as a couple to pay down debt or divide up what is owed and each be responsible fora portion?

#2: How will we save for retirement? Is retirement something you will save for jointly or separately? This is wheredetails matter. For instance, if one spouse has an excellent retirement package offered through their employer,saving for retirement may not be as big of a priority. Knowing these details will help determine common financialgoals.

#3: How will we handle everyday expenses? Would you prefer that everyday expenses, like groceries and rent, bedivvied between spouses, paid for using a joint credit card or funnelled through the joint bank account?

#4: How will we handle emergencies? Will you maintain your own emergency fund in a high-interest savingsaccount or tackle each emergency together as a couple?

#5: How will we save for major goals? Will you save money for goals separately, or will you open a jointaccount and contribute as a couple?

Separate vs. joint bank accounts: How to choose?

Whether to have separate or joint bank accounts is a big question in a relationship, but remember that you don’thave to choose one or the other. Many couples ultimately choose a combination of both — it’s just a matter ofpreference. Finally, remember that, just like a relationship, your financial needs will evolve. What works for you nowmay not be feasible in five years, and you can always make changes to your accounts down the road.

How to choose the best joint bank account in Canada?

Comparing joint accounts is almost identical to comparing standard accounts, such as savings or chequingaccounts. To help, consider the following:

Monthly fees: Also known as account maintenance fees, these are regular monthly fees charged by banks andfinancial institutions. While financial advice usually highlights the benefits of no-fee accounts, there are situations where selecting an account that charges a regularfee makes sense. For instance, if you and your spouse exceed the free transaction limit each month, you could quickly see the per-transaction costs add up. At this point, it makes sense to pay a lower monthly fee to get a higher volume of no-added-fee transactions, each month.

Transaction limits and fees: To avoid unnecessary per-use charges, examine how many and what type oftransactions are included each month.

Access to funds: Look for account access you and your spouse require. For instance, some couples preferunlimited e-transfers, while others only care about online and mobile app access. If in-branch visits are important,be sure to select a joint account from a traditional bank, such as CIBC and Scotiabank.

ATM fees and access: Since most couples will need access to withdrawals and deposits into a joint account, it's agood idea to compare the ATM fees and access for each joint bank account. Avoid this step, and you may pay higher per-transaction costs for each non-network ATM transaction.

Before saying “I Do” to having a joint account with your spouse, confirm that the benefits outweigh any loss of financial independence. If you're ready to proceed, follow these five steps to open a joint bank account in Canada.

5 steps to opening a joint bank account in Canada

Opening a joint bank account in Canada is relatively simple.

Step 1: Shop around. Make a list of all financial institutions that offer bank accounts for multiple account holders.

Step 2: Check the fees. Keeping your banking costs low is important, particularly when saving for a large purchaseor tackling debt.

To help, pick a joint bank account that charges no or low fees for services you require, such as e-transfers,automatic deposits or withdrawals and bill payments. For instance, EQ Bank offers a hybrid account for multipleaccount holders that doesn't charge a monthly fee and lets you earn interest on your savings with a high-interestearnings rate.

Other online options that offer perks include KOHO, Neo Financial, as well as Simplii Bank and Tangerine. Good options for traditional banks that offer joint accounts include CIBC and Scotiabank.

Scotiabank

PROMOTED FOR: Easy-to-use online portal + services of a traditional bank

The Scotiabank’s Preferred Package is a rewards chequing account — a unicorn in the banking world. With an easy-to-use online portal, not only does it make banking as a couple a cinch, but this chequing account comes with unlimited debit transactions² & Interac e-Transfer† transactions — an essential when you’re banking as a couple. Also, for a limited time, there is a great $550* welcome bonus with the Scotiabank Preferred Package (as long as you meet certain conditions).

^{* To qualify, certain conditions must be met. Offer ends February 29, 2024. Visitherefor full terms.}^{¹ Conditions apply. Actual interest rate will vary based on the savings period (the Premium Period) that applies. Visit scotiabank.com/mpsa to learn more.² Conditions apply.Visithereto learn more.†Interace-Transferis a registered trademark of Interac Corp. Used under license.®Registered trademarks of The Bank of Nova Scotia}

Step 3: Decide on the method of application. Would you prefer an online-only application, a hybrid (start online beforesending in documentation or booking an in-person appointment), or an in-branch appointment when opening anaccount? While some banks will offer multiple application options, others will not.

Step 4: Apply and verify. Start the process by filling out the required documentation and verifying your identity. Remember that with a joint bank account, all applicants must fill out paperwork and provide identification.

Step 5: Fund your account. Once you and your spouse have submitted the required paperwork, you will be given thenext steps. In most cases, you can start using your bank account immediately — even as you wait for debit cardsand chequebooks to arrive in the mail.

About our author

Jordann Brown,Author