What is a joint bank account?
A joint bank account is any account with more than one holder who can access the funds. It could be a savings, term deposit, or transaction account.
Multiple account holders can be a useful way to pool resources together among people working towards a common goal or sharing the same expenses and household bills. All parties have access to the funds in the account, but are also responsible for any liabilities associated with the account. For example, if the account is linked to a credit card, all account holders are responsible for paying off any credit card debt.
There are two types of joint bank accounts. For "Both to sign" accounts, all account holders must approve any transactions before money can be used. Meanwhile, for "Either to sign" accounts, each account holder can access and use the funds independently. Most joint accounts now are ‘either to sign’ by default.
In Australia, many banks let you open savings or transaction accounts with multiple account holders.
Who would use a joint bank account?
The most common use of a joint bank account is between spouses, who might share household expenses or mortgage repayments. Combining bank accounts can make it easier to see the financial position of the household rather than each individual.
That’s not the only way joint bank accounts are used though. In any situation where several people have the same financial responsibility or savings target, a joint bank account could be a smart move.
For example, if you and some friends are starting a business, but haven't reached the stage where you need a business account, a joint bank account could be a useful way to manage the initial set-up and operating expenses.
Alternatively, you might share the cost for caring for an older relative with other members of your family, in which case you might open a shared account that the associated expenses will be debited from.
Trusted housemates might also make use of a joint bank account to take care of shared expenses.
What are the pros of a joint bank account?
Home expenses
Joint bank accounts can be handy when it comes to household expenses such as bills and groceries. These ensure a more even split among the expenses, and with a lot of couples sharing household duties it can be handy to have the funds in one place.
A joint everyday transaction account is an easy way for everyone to access their shared household funds. Household bills could be direct debited from this account, while the card linked to the transaction account might be used for groceries and other everyday spending.
Saving targets
If you have a big saving target with your partner, a house or a holiday for example, combining both of your savings into a shared account can be a good way to accurately monitor your progress. If you have a shared mortgage, for example, you might make your linked offset account a joint bank account, so you can both make contributions and benefit from the power of two people offsetting the mortgage, not one.
A joint account can also be a good way to keep each other accountable, as you and your partner can see each other's spending and contributions to the joint account. It can also be more beneficial with interest payments on savings accounts with one big pool of savings.
Get the most out of your joint savings account by comparing interest rates, features, deposit conditions, interest earned and more through the table below.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1.55% p.a. | 4.45% p.a. Intro rate for 5 months then 1.55% p.a. | $555 | 5 months | $0 | $99,999,999 | $0 | $0 | $0 | |||||||||||
0.10% p.a. Bonus rate of 4.05% Rate varies on savings amount. | 4.15% p.a. | $846 | – | $0 | $99,999,999 | $1 | $0 | $0 | |||||||||||
0.10% p.a. Bonus rate of 4.15% Rate varies on savings amount. | 4.25% p.a. | $867 | – | $0 | $99,999,999 | $$formattedMinMonthlyDep.format("%,d",$!{product.minimumMonthlyDeposit}) | $0 | $0 | |||||||||||
4.15% p.a. | 4.15% p.a. | $846 | – | $0 | $4,999 | $0 | $0 | $0 |
Save on fees
There can be a variety of costs associated with maintaining a saving or transaction account. If you and your partner have separate accounts, you might both be paying annual account fees, for example. This is especially the case with accounts linked to credit cards, which could come with an annual fee. By combining accounts, you could then only be charged one set of fees, saving you both half of the amount.
Improved transparency
With a joint account, all holders have equal visibility over the account’s activity. All account holders can see every deposit, withdrawal, and purchase in real time through online banking or app notifications. This shared view helps prevent misunderstandings about where money is going and makes it easier to track spending patterns, balance payments, and stay aligned on financial goals.
Bigger deposit guarantee
The government’s $250,000 financial claims scheme is an insurance policy that covers your deposits up to $250,000 in the very unlikely event that bank goes under. It’s $250k per account holder - so in a joint account with two people you could be covered up to $500,000.
This is the case even if the other party doesn’t earn or contribute anything. If you’re looking for more coverage or you have a big lump of cash, opening a joint account with your spouse could give peace of mind.
What are the cons?
Both liable for debts
Sharing a bank account with other people means that not only does everyone have access to the funds, but everyone is also responsible for any debts associated with the account. If your partner racks up debts, you are also liable for them.
Breaking up
The main downside to a joint bank account is what happens if you and the partner you hold the account with break up. You'll presumably want to close the account and separate your finances, but it could be difficult to work out who is entitled to what, especially in a breadwinner/homemaker relationship.
The same question arises when a household disbands.
Security
Hopefully, you have set up a joint bank account with someone you are confident won't rob you, so security isn't a major concern. It's important to remember though that with an either-to-sign account, any party can withdraw or use an unlimited amount of the joint funds at any time.
In theory, the other party could take every penny in the account legally, so it's crucial to only ever open up joint bank accounts with people you completely trust.
Limited choice
If you’re looking for a savings account in particular, not all of the top products allow joint accounts. When signing up for one, double check it allows you to co-sign with someone else. The end result could be that you have to accept a lower interest rate.
How to open a joint bank account
Opening a joint bank account in Australia is a straightforward process, but it’s important to understand the steps and responsibilities involved before signing up. This three-step guide can help you and your co-account holder manage your finances smoothly and with confidence.
1. Choose the right account type
Start by deciding which type of joint account suits your needs. For spouses, a transaction account is ideal for managing day-to-day expenses like bills, rent, or groceries, while a savings account can help you build shared savings goals. You can even use both, one for spending and one for saving.
2. Provide identification and personal details
Each person will typically need to provide the following:
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Valid identification for each applicant (driver’s licence, passport, etc.)
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Personal details, including full name, date of birth, and residential address
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Contact information, such as phone number and email address
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Tax File Number (TFN), optional but helps avoid being taxed at the highest rate on interest earned
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Proof of address (if not shown on your ID), such as a utility bill or rental agreement
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Details of all account holders. including how you want to manage access (Both to sign or Either to sign). Either to sign is more common.
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Existing customer details if you already bank with the institution
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Initial deposit to activate the account
3. Apply online or in-branch
Joint accounts can typically be opened through the bank’s website, app, or by visiting a branch. The online option is often the quickest, and many banks these days are online or app only, especially ones with the most competitive products.
Before finalising, make sure all parties understand the fees, interest rates, and access conditions. Once the account is active, it’s good practice to communicate regularly about spending and deposits to avoid misunderstandings.
Can I just get a card for my partner on my existing account?
If you would like to maintain your own bank account, but would also like your partner to be able to make transactions using the funds in it, you could apply for a supplementary card. This will allow your partner to make transactions and authorise direct debits using their own card.
In this case, your partner will not be liable for any debts associated with the account. There might also be fees for a secondary cardholder, especially in the case of a credit card.
How to choose the best joint bank account
Generally, transaction and savings accounts offered by banks will be the same for single or multiple account holders. When comparing accounts, you'll need to consider the same things you would when choosing a transaction or savings account for yourself. However, there are still some things specific to joint bank accounts to watch out for.
Multiple linked cards
If you are opening a joint transaction account, presumably one of your priorities is for every account holder to easily be able to use the funds. Having a linked debit or credit card for each is one of the easiest ways to achieve this, so look out for providers that will allow all account holders to have their own card.
Interest rates on larger sums
After combining your savings into a joint savings account, you could earn interest on a significantly larger sum. It's therefore even more important to find an account with a high interest rate, as the more money you have deposited in a savings account, the more interest income you can earn from a higher rate.
Further, many savings accounts have monthly criteria you need to meet to get the top interest rate, called bonus savings accounts. If two people are on the account instead of one, you might be more likely to meet those goals every month.
Spending insights
Ideally, you'll also want a bank account with an app that delivers spending insights, such as how much money you spent on groceries or utilities that month. This will enable you to tackle cost burdens and budgeting together.
