Managing money together: which account works best for you?

Shared rent, holidays or the weekly shop: couples who live together will sooner or later have to decide how to manage their finances. Should you opt for separate accounts, a joint account or a combination of both?

The right account depends on your personal circumstances, the level of trust in your relationship and your individual approach to money. Talk openly about your expectations and check which solution works best for you. Your bank will be happy to advise you.

Separate accounts: greater autonomy, but more effort

Separate accounts mean each partner has their own bank account and remains in full control of their income and spending. In practice, however, this usually requires more coordination. Shared expenses such as rent, household shopping or insurance need to be divided up and settled between you.

But remember to plan for emergencies! If you use only separate accounts, it is worth arranging powers of attorney for banking transactions so your partner can access your account if necessary. Your bank can provide the relevant forms.

One account for two people: the joint account

Couples who manage their finances jointly may find a joint account a practical solution. In practice, most joint accounts allow either account holder to make payments and withdraw money independently.
A less common option requires the consent of both account holders for every transaction. While this offers greater control, it may prove less practical in everyday life.

A joint account reduces the need for day-to-day coordination, but it also requires mutual trust and clear ground rules. If you and your partner have different spending habits or priorities, this can sometimes lead to disagreements.
It is also worth bearing in mind that one account holder may revoke the other’s authority to act independently. In that case, transactions can only be carried out jointly.

Important to know: If a joint account goes into the red, the bank may, at its discretion, require either account holder to repay the full amount, regardless of which account holder made the relevant withdrawals or payments.
In the event of death, the surviving account holder will generally continue to have sole access to the former joint account.

The three account model: separate and joint accounts combined

Another option is for both partners to keep their individual accounts while also maintaining a joint account for shared day-to-day expenses. The joint account then becomes the central account for expenses such as rent, household shopping and insurance.

To decide how much each partner should contribute, it can help to:

• keep a household budget, either on paper or using an app, to calculate your monthly expenses;
• review your account statements regularly
• decide whether holidays and larger purchases should also be paid for from the joint account
• Some couples pay their entire salaries into the joint account and retain a fixed amount in their personal accounts for individual spending. This can be particularly helpful where partners have very different approaches to managing money.