Newly married? Get a joint Savings Account first

A wedding is one of the biggest events in one's lifetime that brings in anticipations, excitement, thrill and fulfillment for a couple while at the same time is quite demanding too. With all going well in the end, having just embarked on a new journey together you must not forget the next part - working on the future details of how to start off. Organising and starting to manage your finances as a couple is a crucial element. Opening a joint savings account should be your first step towards it.

Should couples get a Joint Account?

Double income households are becoming the norm rather than the exception. With both partners earning an income, it is prudent to share the responsibility of paying bills or working towards financial life goals. One of the most effective ways of doing this is getting a joint account that you can use to pay for common expenses and goals.

Benefits of having a Joint Account

Transparency

 
First, a joint account offers transparency on how each rupee is spent, especially for collective needs and goals. This makes it easier to stay on top of your finances. More importantly, it prevents any possibility of misunderstandings between the two of you. 

Easy access

A joint account can give both partners access to their money whenever they need it, thanks to the availability of debit cards for each account holder. Couples can also gain online access to their account through any digital channel.

Payments simplified

Additionally, a joint account can simplify bill payments and other financial obligations. Along with streamlining expenditure, it also helps track your spending and maintain your budget. 

Planning your finances as a couple

While the benefits of having a joint account are many, it does not mean that you close your individual accounts. In fact, financial experts strongly advise couples to maintain their personal accounts in which their salary or business income is credited.

As a couple, the best way to manage your finances and maintain transparency is to have a minimum of three accounts. The first two should be individual, which you probably carry into the marriage, and the third should be a joint account. Each of you should regularly transfer a pre-decided amount to the joint savings account from your personal one. Ideally, this money should be used for paying expenses such as rent, utilities, groceries, salaries for house help, and lifestyle needs such as movies and dining out.

The joint account can also be used for financial planning. This includes saving for an emergency fund, vacations, down payment on a house, children's education (if you plan to have them), retirement, etc. Alternatively, you can create a separate joint account dedicated to your combined life goals. This way, the original joint savings account can handle expenses while the second one takes care of meeting future goals. Opt for IDFC FIRST bank accounts which offer online saving account opening options.

Meanwhile, your individual accounts can be used purely for your personal expenses and savings. This could include buying health and life insurance, pursuing a hobby, pampering yourself, going out with friends, or saving for a personal financial goal. You can spend this money without having to consult your partner every time.

Conclusion

It is imperative that couples plan their finances and get a joint account as soon as they are married. This can help build trust, grow into a strong team, become financially empowered, and set the stage for a smooth and happy married life.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.