It may be challenging to manage multiple accounts if you need to pay the rent, utilities, and purchase groceries. Creating a joint bank account helps simplify everything and facilitates your common budgeting and saving. With a joint account, both persons have full access to the funds; thus, you will have to share any overdraft and bank fees too. The joint access is extremely helpful when it comes to covering daily needs and making joint payments and subscriptions.
But there should be trust between both of you and a certain level of understanding regarding personal financial habits. You may find it highly advisable to plan a budget and discuss possible large expenses in advance in order to prevent financial problems in the future.
Types of Joint Accounts
First, there are several types of joint accounts that you may select according to your financial aims. The joint transaction account serves mainly to manage daily transactions. Usually, both account holders receive their separate debit cards connected to this account. It is very convenient because everybody will be able to use a debit card to pay bills, shop, or withdraw cash from ATMs. You may deposit here your part of salaries to manage day-to-day expenses.
A joint savings account is useful to store some funds for a trip abroad, a home deposit, or an emergency fund. Typically, a joint savings account attracts a higher interest rate to earn more. Though, there may be some limitations on withdrawal of money. The joint investment account may be opened by two people who wish to trade securities and shares. In other words, this kind of account helps build a joint fortune.
Requirements for Opening a Joint Account
In general, there are no specific requirements to open a joint account. You should just meet the following conditions: both applicants should be at least 18 years old; and both applicants should be residents of Australia with an address registered locally. There are also exceptions: some financial organisations accept applications of non-residents but only in branch offices with additional verification of documents. Both applicants should agree to have a joint account. Besides, the financial organisation will verify identity and creditworthiness of both candidates.
Getting Ready with Papers
Preparing documents will be your primary step to opening an account. Banks in Australia use an identification system, which requires 100 points of identification. You may prove your identity with the help of a driving license or passport. You will also need some additional identification papers such as Medicare card, latest utility bill, council rates notices to prove your residence in the country.
Each candidate needs their full set of documents for a reliable bank such as ING. What’s more, it would be highly advisable to provide Tax File Numbers. Although providing a Tax File Number is not obligatory, omitting it leads to taxes levied on interests by the highest marginal rate. Getting all needed documents in hand will definitely facilitate the procedure. If you fill out forms online, just scan your documents. You may find it convenient to download them and print beforehand. In case you are going to visit a bank, both parties should do it.
Open a Joint Account Together
Joining money into a joint account is a new stage in managing your finances. After becoming familiar with types of accounts, their requirements and documentation, you are now ready to open a joint account. Gather your papers and discuss your budget and aims with your partner.
