What is a 'Conjoined Account'

A conjoined account is an account with multiple account holders. A variety of accounts can be conjoined, including checking and credit card accounts. Purchases made by account holders are reflected in the account’s balance. All account holders are responsible for paying the overall balance.

BREAKING DOWN 'Conjoined Account'

A conjoined account may be a particular worthwhile option for individuals in several situations. Two common scenarios are when a couple gets married or moves in to a shared residence. In those cases, the couples may want a single line of credit or a sole checking account for the household rather than both individuals having their own cards.

From a credit standpoint, conjoined account holders have equal rights to the account, and thus equal ability to access the line of credit to make purchases. Both are also able to transfer balances, request an increase in the credit line or close the account. Opening a conjoined account means that multiple individuals share ownership in the same account. That means both parties own the account balance, whether the balance is positive or negative. In the case of a credit card, delinquency can affect the account holders' credit scores

This is a different classification than the account holders of a conjoined account adding an authorized user; authorized users are allowed to use the account but are not responsible for the balance. As account holders, they will likely have greater access to services tied to the account than the account’s authorized users. In some situations the account holders may be able to request that their authorized users have access to the same service that they do.

Best Practices for a Conjoined Account

Before opening a conjoined account, it may be worth discussing the intentions for the account among the account holders and any authorized users who my have access to account. People may want to discuss what the account should be used for, limits on account use, who handles the payment responsibilities and what would prompt anyone with access to the account to lose their privileges. If ground rules are not set on conjoined account use, the risk of account abuse and account delinquency may increase. For example, the funds in a checking account could be drained or a line of credit may be maxed out if not all parties are aware of the account’s status or transaction history. Because all conjoined account holders are responsible for what happens to the account, misuse by one user or another may result in collection agencies contacting the account holders looking for payment. 

RELATED TERMS
  1. Account Statement

    An account statement is a periodic summary of account activity ...
  2. Accounting

    Accounting is the systematic and comprehensive recording of financial ...
  3. Linked Savings Account

    A linked savings account is a savings account that is connected ...
  4. Chart of Accounts

    A chart of accounts is a list of each account a company owns, ...
  5. Account

    An account is an arrangement by which an organization accepts ...
  6. Bank Deposits

    Bank deposits are money placed into a deposit accounts at a banking ...
Related Articles
  1. Personal Finance

    Handling High-Yield Savings Accounts

    Is a high-yield savings account right for you? Read on to find out what they have to offer.
  2. Personal Finance

    Combining Credit For A Happy Financial-Ever-After

    A couple's finances may not always be a match made in heaven. Find out when to say "I Do".
  3. Personal Finance

    Checking Account Reviews: Chase Premium Platinum

    Which perks and services come with Premier Platinum and is it worth the cost to you?
  4. Investing

    Money Market Accounts vs. Savings Accounts

    An interest-bearing account that pays a higher interest rate than a savings account and gives the account holder limited check-writing ability.
  5. Personal Finance

    The 5 Best Alternatives to Bank Savings Accounts

    Find out about some of the most profitable available alternatives to depositing money in a traditional bank passbook savings account.
  6. Investing

    Best Investment Accounts for Young Investors

    What are the best investment accounts for young investors? The types of investment accounts to consider can be particularly confusing.
  7. Trading

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  8. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
RELATED FAQS
  1. What is the difference between the current account and the capital account?

    Learn how to differentiate between the capital account and the current account, the two components of the balance of payments ... Read Answer >>
  2. What's the difference between the current account and the capital account?

    Both accounts relate to the balance of payments of a nation. One considers goods and services currently produced, the other ... Read Answer >>
  3. What is cost accounting?

    Learn about the main benefits of cost accounting systems, how they are different from financial accounting and why they are ... Read Answer >>
Trading Center