Pentagon Federal Credit Union
Log In Accounts
Search
  • Routing # 256078446
  • Partners
  • Member Discounts
  • Wealth
  • Foundation
  • ATMs & Branches
  • About
  • Search
  • Checking & Savings
    • Checking
      • Free Checking
      • Access America Checking
      • All Checking Accounts
    • Savings
      • Premium Online Savings
      • Regular Savings
      • All Savings Accounts
    • Certificates
      • Money Market Certificate
      • Coverdell Education Certificate
      • All Certificates
    • IRAs
      • IRA Certificate
      • IRA Savings Account
      • All IRAs
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Access America Checking - Earn more and Get paid early.
  • Credit Cards
    • Our Cards
      • Credit Cards Overview
    • How Can We Help?
      • Contact Us
      • Disclosures
      • Resource Center
    • Special
      • Choose the perfect card - Open Now
  • Auto
    • Auto Loans
      • Purchase
      • Refinance
      • Car Buying Service
    • Protection
      • Vehicle Protection
      • GAP Coverage
      • Debt Protection
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Unlock your next road trip - Explore Vehicles
  • Mortgage & Home Equity
    • Home
      • Mortgage Home
    • Purchase
      • Apply for a Mortgage
      • PenFed Homes
      • First Time Homebuyer
      • Mortgage Pre-approval
    • HELOC & Refi
      • HELOC
      • Mortgage Refi
    • Loan Types
      • Conventional Loan
      • FHA Loan
      • VA Loan
      • Jumbo Loan
      • VA Refi Loan
    • Tools & Resources
      • Knowledge Center
      • Mortgage Media
      • Mortgage Calculators
      • Contact
    • Special
      • Home affordability sale - View Rates
  • Loans
    • Personal Loans
      • Overview
      • Debt Consolidation
      • Credit Card Consolidation
      • Home Improvement
      • Additional Uses
    • Student Loans
      • Student Loans
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Personal Loans made easy online
  • Learn
    • Learning Hub
      • Learning Center
      • Mortgage Knowledge Center
      • Financial Assistance Center
      • Natural Disaster Relief Assistance
    • About PenFed
      • About
      • New Members
      • Sponsors
      • FAQs
      • Forms
    • Security & Fraud
      • Security Center
    • How Can We Help?
      • Careers
      • Contact Us
    • Special
      • Learn how we protect your data
  • Join Now
  • Log In
  • Accounts
  • Resources

LEARNING CENTER

To get ahead you have to stay informed.
  1. Home
  2. Learning Center
  3. How to Manage a Joint Checking Account

Finance

How to Manage a Joint Checking Account

EXPECTED READ TIME: 7 MINUTES

Published: September 11, 2017

Updated: March 26, 2024

A joint checking account can seriously simplify your life — or it can become a source of constant stress. The outcome depends on whether a joint account fits your relationship and your style of communication around money.

Torn on what’s right for you? Don’t be! We’ll walk you through the decision process.

What We’ll Cover

  • What Is a Joint Checking Account?
  • Should You Get a Joint Account?
  • What Are the Benefits of Joint Checking Accounts?
  • How to Open a Joint Checking Account
  • Tips for Making Your Joint Account Work
  • FAQs

What Is a Joint Checking Account?

A joint checking account is a checking account that belongs to two or more people. It’s a common choice for married couples, but joint checking can also be useful for:

  • Parents co-managing accounts with children

  • Adults assisting their aging parents or other dependents

  • Unmarried adults who share living expenses, such as roommates or couples  

  • Business partners

savings icon

Start them off right — open a checking account with your kid.

Learn More

With a joint account, everyone whose name is on the account can use the account to deposit, transfer, or withdraw money. Each person on the account can also have their own debit card and checks connected to that account, as well as their own personal login credentials for mobile banking.

Should You Get a Joint Account?

Does being married mean you need a joint checking account? Not necessarily. Some couples still prefer the independence of keeping their finances separate. It all depends on your goals, values, and circumstances.

Pros and Cons of Joint Checking Account

Here’s a quick look at the pros and cons of sharing an account with someone else. 

Pros

Cons

Convenient

Possible overdraft risk

Provides oversight

Loss of privacy

More FDIC or NCUA coverage

Complicated relationships

Earn higher dividends on eligible accounts

Subject to creditors

What Are the Benefits of Joint Checking Accounts?

If you are considering a joint checking account, there are several benefits to consider:

1. Convenience

Joint accounts can be convenient. They make it easy for everyone on the account to access and monitor shared money. A joint checking account makes it easier for couples to combine their assets, budget together, and track shared financial goals.

Did you know? Business co-owners can also benefit from joint checking. Each owner can track income and expenditures from the same account, simplifying bookkeeping and bill pay.

A joint checking account makes it easier for couples to combine their assets, budget together, and track shared financial goals.

2. Oversight

If you’re responsible for helping other people manage their money, you might rely on joint checking to stay connected. This goes for parents with minors or college-age children, as well as adults who help aging parents or other dependents. 

Joint accounts enable you to easily monitor spending habits, move money around freely, and ensure bills are paid on time when your dependents need help.

3. More FDIC or NCUA Coverage  

The FDIC insures money held in banks in the event they fail. The NCUA does the same thing for credit unions. Both organizations insure up to $250,000 per depositor, per account. That means if you share an account with someone, your money could be insured up to $500,000 instead.

If you have a dividend-bearing checking account, combining your money into one account could help you earn more.

4. Higher Dividends

If you have a dividend-bearing checking account, combining your money into one account could help you earn more. Think about it: two contributors may mean more money in your account at any given time. 

You might even qualify for a higher dividend rate with your higher, combined balance.

earn more icon

Curious how much you could earn with a checking account?

Find Out

Cons of Joint Checking Accounts

Here are some cons to keep in mind when considering joint checking:

1. Overdraft Risk

It can be easy to overdraw a joint checking account with two people spending from the account independently. Sharing an account means you’ll want to set ground rules for spending, stick to them, and communicate openly.

2. Some Loss of Privacy

When you share a checking account with someone, they can see everything you spend money on from that account. This can be problematic for couples who value money differently or college-age adults who want greater independence from parents. 

Sharing an account means you’ll want to set ground rules for spending, stick to them, and communicate openly.

3. Relationship Complications

Money is a common source of stress for couples. If a relationship ends, it can be tough to divide a shared checking account because banks consider everything in a joint account to be shared equally regardless of who deposited it. Depending on your bank or credit union, both account holders may have to consent to close a joint checking account.

Our advice? Consider everything you put in your joint checking account to be fair game for a 50/50 split from the get-go — or simply get in writing how things would be split up should the time come. 

4. Subject to Creditors 

If you share a joint checking account with someone who has run up debts in the past, your shared account could be subject to creditors or debt collection. It doesn’t matter if the debt isn’t yours. This is why it’s important to only open joint checking accounts with someone you know well and trust.

The Hybrid Approach

An exclusive joint account isn’t the best approach for everyone, especially for couples who can't quite agree on what to do with their money. Another option would be to take a hybrid approach: separate accounts for your own spending money, with a joint account to handle mutual expenses like utilities and rent or mortgage payments. 

The best of both worlds, this approach ensures essential expenses are covered while giving each person the freedom to spend the rest of their money however they choose.

Take a hybrid approach: separate accounts for your own spending money, with a joint account to handle mutual expenses.

How to Open a Joint Checking Account

Opening a joint checking account is similar to opening one for just yourself. To open a joint checking account, you’ll need personal information for each person on the account, including:

  • Full legal name

  • Date of birth

  • Social Security number 

  • Valid government-issued ID like a driver’s license or passport

  • Contact information

  • Minimum opening deposit

You can open a joint checking account online or in person. If you’re opening it online, be sure to select the “joint account option” on your bank or credit union’s website. You can also turn a checking account into a joint account by calling your financial institution and adding a person as an account holder. 

You can also turn a checking account into a joint account by calling your financial institution and adding a person as an account holder.

Tips for Making Your Joint Account Work

Joint checking accounts require communication. Whether you’re opening an account with your spouse or someone else, here are some important things to discuss before your finances turn into fights.

Agree on Financial Ground Rules

It’s important that you and other account holders are on the same page about what to do with your money. 

Depending on your circumstances, you may want to set certain spending limits, record expenditures in a shared place, or set specific savings goals. If the rules you initially come up with don't work, that's okay — just have another conversation and figure out how to make it work.

If the rules you initially come up with don't work, that's okay — just have another conversation and figure it out.

Work Out a Budget

Whether you use paper, a spreadsheet, or an app, write down all your bills and what you both typically spend every month. If the budget doesn't work, talk about it and decide how to proceed together. 

Consider this: While budgeting sounds boring, this is actually a good time to talk about your long-term goals together and make a plan to save up for them.

Decide Who Pays the Bills

There's no right or wrong answer here. One spouse may handle all the bills, or you may draw up specific responsibilities for who does what (e.g., one of you manages the cell phone bills, the other handles the rent). It's important to make sure you both know who's responsible for what so no financial obligations fall through the cracks.

purchase home icon

Creating a budget for your household is similar to creating a budget for yourself.

Learn How

Set Aside Time to Discuss Finances

Budgets aren’t etched in stone for a reason — your financial situation will likely change as your life changes. It’s important to periodically revisit your joint finances and tweak things that need updating. Whether it’s once a year or once a week is up to you — either way, prioritize time to talk about your shared finances. 

FAQs

Money in joint checking accounts is owned equally by all account holders.

Yes. You do not have to be married to open a joint account with someone.

No, you can — and probably should — keep your existing checking account open. Learn more about managing multiple checking accounts.

No, each person on a joint checking account can use funds in that account without seeking approval from the other account holder. This includes transferring money from the joint account to other accounts.

In most cases, you can remove yourself from a joint checking account by calling your financial institution and asking to be removed.

Closing a checking account won’t affect your credit score whether it’s a joint account or yours alone. Banks and credit unions don’t report your activity to credit bureaus.

In most cases, when one account holder dies, sole ownership of the account transfers to the other account holder.

The Takeaway

Sharing finances with another person can be challenging, but under the right circumstances, a joint account can make it easier. As long as you communicate openly and honestly, you’re sure to work through any obstacles.

Bank Together With Confidence

Get access to a checking account built for the way you — both — live.

Learn More

SIMILAR ARTICLES

Why Is It a Share Account Instead of a Savings Account?

While credit unions and banks perform many of the same financial functions, their terminologies can be quite different. Learn why and what it means to you.
Why Is It a Share Account Instead of a Savings Account?

4 Features Your Checking Account Should Have

A checking account is a convenient funnel for your paycheck, online bill payments, and routine finances. Look for these features when choosing an account.
4 Features Your Checking Account Should Have

What To Expect From Your Checking Account

Information on checking account basics and what you can expect from work with a credit union.
What To Expect From Your Checking Account

How Do Checking Accounts Work?

Understanding the details of how money comes and goes from your account is crucial to knowing your current balance, and how to avoid overdrafts.
How Do Checking Accounts Work?
  • ATMs & Branches
  • Careers
  • Foundation
  • Contact Us
  • Security Center

This credit union is federally insured by the National Credit Union Administration. Rates are current as of May 2025 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram
Download the PenFed app on Apple Store Download the PenFed app on Google Play
Read More about Equal Housing
Routing #256078446

©2025 Pentagon Federal Credit Union

Privacy
Disclosures
Fees
Rates
Forms
Site Map

Head’s Up!

You are about to visit a third-party site not affiliated with PenFed.org.

penfedcu.sparrowfi.com sparrowfi.com penfed and traveller logo penfed and seguros logo penfed and national car logo penfed and trustage logo PenFed and CampusDoor logo PenFed and Ascent logo PenFed and Ascent logo penfed and househappy logo penfed and benefit services logo penfed and chubb logo penfed and alpha logo penfed and crutchfield logo penfed and ftd logo

This content is from a third-party website. PenFed Credit Union is not responsible for its information.

Continue

Get Started

×

LOGIN

JOIN