Advantages & Disadvantages of Joint Accounts
There are typical benefits and drawbacks associated with joint accounts, for example:
Advantages:
- Help managing joint finances, e.g. paying household bills
- Enables group of people to save / pay for joint expenses e.g. Lottery syndicate
- Can maintain a personal 'sole' account in addition to joint account
- Good credit history of holder reflects well on other holders
Disadvantages:
- Joint liability for debt, even if you are not personally responsible for running up debt
- 'All-to-sign' accounts may be impractical: cannot authorise payments alone
- Disputes with other account holders may cause problems
- Bad credit history of holder reflects badly on other holders
- Other account holders automatically inherit your share of account credit if you die
