What Are Joint Bank Accounts, and How Do They Work?

Joint bank accounts, shared by multiple individuals, facilitate collaborative savings and spending. They're popular among couples, adults assisting elderly parents, and parents teaching children financial literacy.

While they promise seamless financial collaboration, they demand more trust and self-awareness than individual accounts. For Singaporeans considering this financial step with their partner, understanding the nuances is crucial. 

This guide explores key factors for opening a joint bank account, ensuring a harmonious financial partnership.

» READ MORE: Best savings accounts in Singapore (2025)

Imagine building a future together, brick by financial brick. A joint bank account can be the foundation, but is it necessary? It's a powerful tool only if both partners are emotionally ready. 

Sharing finances requires a deep level of trust and open communication, especially with your significant other. Discussing spending habits and savings goals might feel uncomfortable, but it's essential. 

By setting clear expectations upfront, you can strengthen your relationship and avoid future financial conflicts.

» READ MORE: SingSaver’s picks for the best savings accounts for your money

• Parents can monitor a child’s spending habits and easily transfer funds when needed.

• Couples can manage shared expenses like rent, utilities, and groceries, and save for joint goals like vacations or home renovations.

• Adult children can assist elderly parents with financial management.

• A joint account can streamline access to funds upon a parent’s passing, potentially avoiding probate delays.

• Each account holder is insured up to S$100,000 under the Singapore Deposit Insurance Corporation (SDIC) per insured bank.

» MORE: When should you open a second account?

Case study 1: Joint focus on needs over wants

K.H. Ong, 31, Software Engineer 

H.Q. Chew, 30, Teacher

K.H.: We don’t have a joint account yet, but would want to set one up with my soon-to-be wife. It is easier to calculate our combined expenses at the end of the month, and it also allows us to set common goals for big-ticket investments, like housing, renovations and actual investments. Other than that, it should go towards paying common expenses like internet bills and groceries. 

If you were to think about it, since both parties have to be agreeable to use the sum within, it trains us to be focused on needs more than wants.

H.Q.: Should we set up a joint account, I feel the contribution would have to be a percentage of our respective salaries, not a 50-50 split. In the long run, it’ll be very tiring to keep up.

Case study 2: A shared responsibility for our financial goals

Samantha T., 26, Account Manager

My fiance and I first set up a joint account when we both started working, with the purpose of boosting the interest rates of our DBS Multiplier accounts. Our salaries and the dividends from the stocks we have individually are credited into this single account. We then transfer the money out into our individual accounts because, on its own, the joint account earns just 0.05% p.a.

When we get married, our plan is to top up and use the account for joint expenses, such as utility bills, groceries and other household necessities. Other expenses such as meals, cab rides and small purchases would continue to be on a ‘sometimes you pay, sometimes I pay’ basis, which works for us since neither of us spends excessively anyway. 

What we don’t use the account for is to grow our savings. As we are both very prudent with money, the money in the joint account is kept at a minimum. We prefer to keep spare cash in high-yield savings accounts or investments that reap higher returns.

With a joint account, it’s the start of a shared responsibility for our future and also a reminder that our financial decisions don’t just affect ourselves.

Case study 3: Transparency that eliminates arguments

Maggie R., 33, Marketing Manager

Before I was married, we had gotten a joint account together to manage rent and income from our Airbnb adventures and save up together for big expenses, such as flights to the US and more. We agreed on a small monthly amount to add to this account and maintained separate bank accounts for all other things in our life, such as savings and retirement, and would alternate payments when it came to outings together or with our friends.

Once we moved to Singapore, our situation changed, with us moving for his career and me being on the job market. At this point, we merged our monies into a single joint account and never looked back. Fast forward three years later, we’re married and maintain the same financial process. We still maintain separate accounts in the US and Australia for investments or other expenditures, but the joint account for our living expenses and day-to-day spending gives us a level of transparency and openness that takes away all of the arguments and disagreements. 

Everyone’s financial situations differ, but aligning your financial goals with full trust and transparency helped to create a positive financial situation in our relationship.

Case study 4: Balance of spending and saving

Dahlia Tan, 29, Art Director

We set up the joint savings account the moment we got our BTO queue number. We know that we are both committed to moving toward another stage of life where big spending will be coming along. 

In the first two years, we saved about 10% of our income. In our 3rd year, we saved 20% of our income. Our earning power is quite similar, so there’s no dispute over who should contribute more.

We used the account mainly for our joint expenses, from travelling to joint spending such as parents’ birthdays and gifts. A huge chunk was used for the wedding we just had back in December. Moving forward, we anticipate another huge spending at the end of 2021 when our BTO arrives.

One of the pitfalls of a joint account, I feel, is the danger of overspending. To prevent this, every time we hit $10,000, we will open a fixed deposit account to prevent overspending. Therefore, this joint account functions very much like a spending account, and we know we have safely kept some money aside.

Case study 5: There’s room for both joint and personal savings accounts

Hazel Cheng, 29, Web Content Writer

Stepping into the 12th year of courtship with my soon-to-be husband, it’s a wonder we haven’t really talked about opening a joint savings account. I don’t blame him for not broaching the subject — I’m stellar at spending, and he’s wonderful at saving. 

Don’t get me wrong; we are very transparent about our finances. In fact, in order to take advantage of the higher interest rates that some savings accounts offer, we’ve started pooling some of our savings together recently, although the UOB One account is legally my savings account.

Each month, each of us contributes a specific sum of money to the account. We have an Excel spreadsheet detailing how much in shared savings we’ve mustered, say, by March 2022. It keeps the tracking part of our shared savings a little more manageable, though I must concede that it is a nightmare on my end. I never really knew how much money there was in the account—that’s fully mine to spend and use—until I squinted at the Excel spreadsheet and punched in the calculator. We really need to figure a better way out, don’t we?

As for an actual joint savings account, I reckon we’ll open one when our BTO is ready. It will definitely be convenient to split home and kid-related expenses. However, there should be ‘rules’. For example, how much each one is contributing and what kind of expenses can be paid for using funds from the joint savings account. We will still have our own personal savings accounts.

• Potential for one party to overspend, relying on the other to replenish funds.

• Joint responsibility for account fees, like overdraft charges.

• Creditors can pursue funds in the joint account if one holder defaults on debts.

• Lack of privacy due to shared transaction visibility.

» READ MORE: SingSaver’s picks for the best savings accounts for your money

Case study 1: Not seeing eye to eye on savings and spending

Manfred Lee, 37, Communications Consultant

My wife and I rarely talk about finances, as it has always been a contentious subject between us. It has always been a sensitive subject because neither of us sees eye to eye on how to save and spend. For example, while I’m willing to go for cheaper alternatives, my wife is more willing to shell out for convenience. 

However, since getting married, there have been many unforeseen financial responsibilities. From unexpected medical complications to family commitments, I’ve found myself paying for most of these expenses solely. I’ve even had to pay off the hospital bills in instalments. 

While we do have a joint account, we don’t contribute to it equally even though we both earn the same amount of money. I suspect that I am not privy to her other financial commitments like her own personal debts and spending. Our joint account pays for all our utilities, groceries and housing loan, but the outlay is more than the input for some months.

This means I have barely seen my savings increase these past few years, especially since I have previously committed to some investments before we got married. While that may be the only saving grace, it doesn’t leave a lot of liquid cash in case of emergencies.

Make sure to squirrel away money into savings and accommodate liquid investment plans for rainy days and unforeseen events. You never know when you’ll need access to capital when you need it. This also doubles up as marriage advice: actively engage your spouse in financial planning, even if they are reluctant to.

Case study 2: Keeping it flexible with separate accounts

Darren Ng, 31, Software Engineer

My wife and I set up a joint account two years ago as part of the bank loan we have taken for our house. Since then, we have never really used it, even though we meant to. We contributed equally to it when we set it up and wanted to use it to pay for groceries and bills.

However, since we moved in, we realised this was not necessary as we could split the bills equally between ourselves and pay from our own bank accounts. With the advancement in payment services, we can also simply PayNow each other if we want to help each other out. We chose to keep only slightly more than the minimum sum as we think we should place our money in places with better returns. 

My wife and I have not experienced any issues so far (and hopefully not in the future) but we could see how complications might occur for joint accounts: who contributes more, what constitutes the usage of monies in the joint account, what happens when one person needs money from the joint account – you know, questions like that. 

We are fortunate that both of us earn about the same amount and lead similar lifestyles; hence, it was an easy decision to split the bills equally. We have also agreed to have our separate savings to pay for any unforeseen expenses. If any of us needs financial help, the other party can still help with his/her own savings. This minimises complications regarding the joint account. At the end of the day, we feel there is no right or wrong; the key is open communication regarding finances.

Case study 3: A change of mind over the DINK lifestyle in Singapore

Jayeeta Mazumder, 35, Lifestyle Content Manager

If you asked us this question a few years ago, we'd probably say a resounding 'no'. We loved leading independent lives as a couple. We had jobs that would take us around the world, we liked spending money on dining, travel and shopping on our own accord, and we definitely liked being answerable to no one. We kept our savings accounts separate for the first 5 years of our married life, and we don't regret that decision one bit.

Over the last two years, though, our priorities started evolving. We moved to Singapore with a DINK (double income, no kids) lifestyle. It meant a higher cost of living — higher rent, utility bills, groceries, transportation, and so on. It was time to think strategically about our joint expenses, and it made sense to have a joint source of funds. We use our joint savings to invest and plan towards retirement with our financial advisor. As a couple pursuing financial freedom, it gives us a sense of control and calm over our future. We also put aside a fixed amount for our travels (yes, even during this post-pandemic era) because we wouldn't want to scrimp on small joys when we're retired. 

We realise that each couple's financial journey is purely circumstantial. Had our priorities not changed, would we go for a joint account? Probably not. But now that we do, we absolutely vouch for it because the gains are much higher than losses. Eventually, if you're open and communicative with your spouse about your financial expectations, you set yourselves up for a successful financial future together.

Married couples often find joint bank accounts a convenient way to manage shared finances, from home loan repayments and utility bills to grocery expenses and shared investment portfolios. This consolidation simplifies bill payments, budgeting, and tracking of household expenditures.

Joint accounts facilitate the pooling of funds for various shared expenses, such as children's education, household utilities, groceries, and even joint savings goals. This shared approach can streamline financial management and promote transparency within the relationship.

Furthermore, joint accounts can be a useful tool for managing shared investments, allowing couples to collectively save and grow their wealth. This enables easier tracking of investment performance and collaborative decision-making.

A crucial aspect of joint accounts is understanding the difference between "either-to-sign" and "both-to-sign" arrangements. An "either-to-sign" account allows either spouse to conduct transactions independently, while a "both-to-sign" account requires both spouses' authorisation for withdrawals and transfers.

Of course, it's essential to be aware of the regulatory framework. Monetary Authority of Singapore (MAS) regulations influence account access and liability, as does the Singapore Deposit Insurance Corporation (SDIC). If you have joint deposit insurance under SDIC, the organisation will divide your funds evenly between account holders, aggregated with their individual accounts to account for the S$100,00 deposit insurance limit.

Couples should also proactively engage in financial planning, considering potential scenarios like divorce or the unfortunate event of death, to ensure clarity and protect their financial interests.

» READ MORE: What other types of bank accounts are there?

Fortunately, making a joint bank account isn't too far off from how you would open your own personal account. Here's a step-by-step guide to help you navigate the process:

1. Choose a local bank (e.g., DBS, UOB, OCBC): Select a reputable bank in Singapore that offers joint account options. Consider account fees, interest rates (if applicable), online banking features, and branch accessibility.

2. Decide if both partners need equal access: Determine how much access and control each account holder will have. You'll need to specify whether you want an "either-to-sign" arrangement (where either account holder can transact independently) or a "both-to-sign" arrangement (requiring both account holders' consent for transactions).

3. Prepare documents: NRICs/passports, proof of address: Gather the necessary identification documents for all account holders. This typically includes your National Registration Identity Cards (NRICs) or passports, and proof of your residential address.

4. Choose account type (savings or current): Savings accounts are suitable for accumulating funds, while current accounts are designed for day-to-day transactions.

5. Sign account opening forms and select signing conditions (either-to-sign vs. both-to-sign): Complete and sign the account opening forms provided by the bank. Clearly define the signing conditions (either-to-sign or both-to-sign) to avoid future disputes.

6. Set rules around transfers, spending caps, and alerts: Establish clear guidelines for account management, including transfer limits, spending caps (if desired), and notification preferences. This ensures transparency and prevents misunderstandings.

» READ MORE: Should you go for a couple’s credit card?

 

Managing finances with teenagers and young adults can be challenging. However, parents in Singapore can open joint accounts with their teenage children to facilitate shared financial management and provide a platform for financial education.

Your options for opening such accounts may vary across different banks in Singapore. Typically, the adult will be the primary account holder, retaining ultimate control over the account while granting the teenager access to transactions and monitoring.

Various tools cater to specific age groups. For example, POSB’s Smart Buddy for primary and secondary school students provides a digital platform for allowances and spending. Similarly, OCBC Mighty Savers and UOB Junior Savers are designed to teach young adults about budgeting, saving, and responsible spending habits.

» READ MORE: Best savings accounts for child development and education