If you are managing your finances with another person—a partner or spouse—a joint bank account would make your life so much easier. This account works pretty much like a regular savings account, the only difference being that you share control of it with another person.
You get two debit cards and checkbooks and both you and your partner can add or withdraw funds, write checks and make purchases using the account. But the question is: what if you want to close the account and transfer the money to a single account?
How to transfer from your joint account
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First, you need to close your joint account.
If you decide that you no longer want to manage your finances with a partner, you can close your joint account by going to your local branch with the other account holder and informing the bank about your decision.
Here, you’ll need to discuss how the remaining funds will be handled and if there are any pending checks and transactions that need to be processed. Both account holders should also sign documents to formalize the closure.
Create a new single account.
If you choose to stay with the same bank, you can open new single accounts where the funds that you agreed on will be transferred. This makes the process a lot easier since you already have an existing account, although you’re still going to be required the minimum deposit for each account.
Of course, you can opt for a different bank for these individual accounts. After this is completed, you may request for the allocated funds to be transferred to each individual account.
➡LEARN MORE: What to do if I have an overdrawn bank account with no money
Transfer money without closing an account.
If you still want to maintain your joint bank account and simply want to transfer funds to a single account, you can do so by logging in to your online account and simply moving the funds to the individual account from the same bank. You can also visit your bank branch and process the money transfer there.
But if you wish to transfer money to an individual account from another bank, the easiest way to do so is by writing a check from your joint account to be deposited to an individual account from another bank.
You may incur charges from this transaction, however, and it may take a few days before the check clears and the money can be withdrawn from the individual account.
The takeaway
There are many benefits to having a joint account. Aside from making financial management easier, you also get to simplify bill payments and share funds easily. But a joint account can also have its detriments, especially when it comes to tax filings and divorce processes.
So if you choose to separate your finances into individual accounts, you just need to inform your bank and agree on the terms of your account’s closure. This way, you can avoid any problems and make sure that your funds will be handled properly as you transition to individual accounts.
