Young couples committing to each other face a number of different choices, but research has shown that deciding whether or not to have a joint savings account is a more thorny issue than discussing moving in together.Having financial independence is important for many people and the notion of allowing another person access to your hard earned dollars can seem like an intrusion, even if it is the person you love.
But there usually comes a point in a relationship where it makes more sense to combine your savings accounts, even if you maintain your own separate checking accounts.
It is certainly not a good idea to suggest a joint account early in a relationship but once you have been living with your partner for some time and have shared goals, such as saving up for your own house or possibly a wedding, putting your money together often is a better way to go.

It is essential that both parties understand what is expected before the account is set up so there is no resentment further down the line.

Discuss issues such as how much you will both contribute, what are permissible expenses and whether you need the other person’s agreement before touching the money in your savings accounts.

Setting down rules might seem a bit awkward at the time, but in the long run it will prevent any arguments or misunderstandings, especially if both parties have differing attitudes towards money.

Pooling resources can mean a greater return as some types of savings accounts offer better rates of interest if the balance is higher.

If you are saving for a specific event such as a wedding, honeymoon or even just a holiday, seeing the money grow more quickly can be far more motivating than two smaller balances.

A coincidental benefit of having a joint high yield savings account can be that it makes the relationship stronger by providing a tangible asset that you have created together.

Once you are ready to open up an account, the process is relatively easy and just involves a trip to the bank with sufficient ID (the actual requirements will vary between providers).

However, another factor you will have to consider and agree upon before you go is the type of account you wish to have.

For joint accounts, it is possible to restrict access and also specify what should happen to the funds if one of the parties should unfortunately die.

The most common type of account is one where either party can withdraw money without the other person’s approval. However, if you are unsure whether this would be a good idea, it is possible to specify that the money can only be withdrawn if both of you authorize it.

The bank will also want to know what will happen to the money if one person dies. It is possible to either allow it to simply transfer to the surviving account holder or alternatively, specify that it should form part of the estate and be distributed accordingly.

Most couples, young and old, find that a combination of individual and joint accounts works the best, with any savings being held jointly and day to day expenses coming from separate accounts. This approach provides the feeling of retaining your personal independence whilst still building for the future with your partner.

Article provided by MoneySupermarket, the UK’s number one comparison website. Compare a variety of savings accounts at