It’s not easy to manage money, and it’s even more difficult to do so when you have to split bills with someone you care about. Opening a joint account, or a savings account shared by two or more people, is one way to streamline this process.
Singaporean Options for Shared Banking
In Singapore, there are primarily two types of joint bank accounts:
Joint-alternate account
Each account holder has equal access to the funds in a joint-alternate account.
Joint-all account
Transactions on a joint account require the signatures of both account holders.
Then, why open a Singapore bank account jointly?
Joint bank accounts are not restricted to married couples, contrary to common misconception. In Singapore, a joint account application can be submitted by any two or more people, such as siblings, friends, or business partners. Couples and families who want to consolidate their resources may benefit from opening a joint account.
The Advantages of Opening a Joint Bank Account in Singapore
Removes unnecessary steps
Having a joint account in Singapore can make it easier to split large purchases like a mortgage, groceries, and utilities. This facilitates time savings and lessens the likelihood of overdue bills among family members.
Boosts Responsibility and Openness
Having a better idea of where your money is going is another perk of creating a joint account. All financial transactions, deposits, withdrawals, and summaries are shared between the two owners. Having full transparency and open communication about monthly costs and long-term investments brings peace of mind to both parties.
Achieves a common goal
Having a combined bank account offers many benefits, including increased responsibility and transparency, as well as making it easier for both partners to define and work towards a common objective, which is especially helpful when planning for large upcoming purchases or investments like new or improved real estate. Since there are now two people putting money into the account, the interest rate can be increased, making it easier to accumulate a sizable sum.
Issues that may occur in a relationship due to having a joint account in Singapore include:
1. One partner spends more than the other
While it may make sense to consolidate large expenses like a mortgage into one monthly payment by opening a joint checking account, you may not want to be on the hook for your spouse’s individual debts like student loans or credit card bills.
How to prevent risk: Make sure everyone is on the same page about how this money will be used, whether for regular family bills or for your child’s daycare. Don’t forget to be consistent and try to settle on a certain amount for each person to contribute. Ten percent of each person’s monthly salary, for instance, could be put into a shared bank account. Don’t be blindsided by unexpected events like losing your job; be flexible. If not, you should get a joint account where both of you have to sign for any changes to be made.
2. Risks financial failure
When two people open a bank account together, they become joint account holders and share equal ownership of the account’s funds. All of the money in the account is equally accessible to both partners, regardless of who put in more. One partner can take all the money out and terminate the account if the marriage or business partnership ends.
How to prevent risk: Don’t put all of your savings into your Singapore joint account. Start your own individual account and put in the joint account only what is needed to cover both of your monthly bills. Also, be careful about inviting someone to join you on a bank account.
3. You may not get your money dispersed the way you want to
The survivorship rule applies to joint bank accounts in Singapore. This means that when one of the joint owners passes away, his claim to the joint statement automatically terminates. If one co-owner dies, the other automatically gains sole ownership.
You can protect your assets by naming the beneficiary of your choice in your will if you have a joint account with someone who is not your legal spouse in Singapore.
On the other hand, if you want other members of your family to benefit from a joint bank account you’ve set up with a close relative, you should make it clear in your will. In the absence of a will, the survivor usually receives all of the funds in the joint account.
In other words, your will should specify the monetary beneficiaries.
An Alternate Action: Select a Single User Account
Single-owner accounts are the best option for people who place a high value on financial autonomy and confidentiality since they allow account holders to maintain sole responsibility for all transactions made on the account.
The price of independence is the duty to keep track of one’s spending and stick to a budget. It may not matter as much when you’re young and unmarried and have less responsibilities, but it becomes more of a burden when you establish a family or take on additional responsibilities, such as caring for aging parents.
As opposed to having a combined bank account, where both partners may keep on top of shared expenses and function as a check and balance for each other’s spending habits, it takes a lot of self-discipline and accountability to ensure that you budget appropriately and the bills are paid on time.
Singapore’s Finest Concurrent Deposit Accounts
Finding the best interest rate and policy for creating a joint account in Singapore requires doing some homework.
Some of the greatest options for a joint bank account in Singapore are as follows:
- DBS Offers a Personal Banking and Online Savings Account System (My Account and eMySavings Account
- UOB provides several different types of accounts, including the Stash, Uniplus, One, and Krisflyer.
- 360 Account and FRANK Account at OCBC Standard Chartered Account
- The iSAVvy Plus Savings Account from Maybank
Conclusion:
Opening a joint bank account in Singapore is the same as opening an account for a single person. The only catch is that both account holders’ physical presence is required to open a joint checking account. It’s available for both remote and in-person opening.
Joint bank accounts in Singapore are a convenient way to save time and money.
Depending on how a couple or family handles their finances, opening a joint bank account might be a boon or a bane. While they make it easy to see where money is going when splitting up, they can also cause fights over money if the partnership ends badly.
The good, the bad, and the ugly can be avoided if partners and family members talk frankly about their financial plans, establish firm guidelines for the joint account, and check in periodically to see how things are going.
Trust, mutual respect, and joint responsibility are essential for success.
