When we think about opening a shared bank account, also called a joint bank account, the image that often comes to mind is newlyweds starting their lives together by sharing their finances. However, shared bank accounts aren't just for couples—they’re helpful in various situations. Business partners, parents and children, or even family members living in different countries can benefit from having a shared bank account. A great and accessible alternative is, of course, a Remitly Circle account that can be shared.1
Who Can Benefit From a Shared Bank Account?
For example, parents might open a shared bank account with their teens to help them learn financial responsibility, or adult children might oversee their elderly parents’ funds as they age. Additionally, families across different countries might find a shared bank account necessary to support each other financially. This could include covering educational costs, medical expenses, or day-to-day necessities like groceries and bills.
A shared bank account can also be a helpful tool when dealing with different currencies and economies. A small amount in one country could be worth significantly more in another, making it important to manage finances across borders effectively. This financial connection between countries can bring both convenience and peace of mind to families.
Shared vs. Separate Bank Accounts: Pros and Cons
Let’s explore the pros and cons of opening a shared bank account compared to keeping individual accounts.
Pros of a Shared Bank Account
- Easy access to funds: Both account holders can access money for emergencies or day-to-day needs.
- Lower fees: One bank account shared between two people can mean fewer account fees.
- Simplified financial management: Tracking expenses becomes easier, which helps with budgeting and future planning.
Cons of a Shared Bank Account
- Limited control: All parties added to the account legally have ownership and control over the entire balance, not just the primary account owner. This means that funds in a shared account can be used by all parties given access to the shared account and does not require pre-approval by the primary account holder.
- Reduced privacy: Both account holders can see all transactions, which may feel like an invasion of privacy for some.
Perhaps the most important consideration when opening a shared bank account is trust. Whether you’re sharing an account with a spouse, parent, child, or business partner, both parties must trust each other. Clear communication is key to avoiding misunderstandings, as money management can often be a sensitive issue in any type of relationship. When both parties feel secure, the shared bank account can lead to more efficient financial management.
Managing a Bank Account Shared Internationally
Trust becomes even more crucial when managing a bank account shared between people in different countries.
For instance, Joan, a Filipina living in London, sends a significant portion of her salary to her parents and children back in the Philippines each month. Without a shared bank account—or, alternatively, a globally shared financial management platform such as Remitly Circle—for example, Joan has no visibility on how the money is spent and when more might be needed —she simply trusts her parents to use it wisely.
Opening a shared account - whether a shared bank account or a shared stored value account such as Remitly Circle - provides Joan with more visibility. She can track how her money is used while her parents can access funds immediately when needed. This arrangement offers convenience and transparency for families like Joan’s, where managing finances across borders can otherwise be challenging. The added layer of security and communication makes a shared account an ideal solution for international families managing finances from afar.
A Global Alternative - The Remitly Circle Shared Account
While Remitly Circle isn’t a traditional bank account, it offers several attractive features for those who financially support loved ones outside the United States. Remitly Circle allows you to securely store money and create sub-accounts that can be shared with anyone you choose—whether it’s a parent, child, significant other, business partner, or even your own savings account in another country. This makes Remitly Circle a convenient tool for managing finances for you and your entire family or a broader network of friends.
1 Remitly Circle’s global account allows you to store value and share access permissions globally. It is not a bank account. Currently available in select markets. Terms and Conditions Apply (link).