CHERRY HILL, N.J.
March 24, 2014
/PRNewswire/ -- Forty-two percent of those in relationships who have joint bank accounts also maintain individual accounts, according to research released today by TD Bank, America's Most Convenient Bank
. The study, which is an extension of the TD Bank
Checking Experience Index
, surveyed more than 1,000 Americans who are either married or living with a significant other to explore how couples of all ages structure their bank accounts.
The survey revealed that couples who maintain individual accounts do so for a variety of reasons, ranging from independence to convenience to emergencies. The survey also identified generational distinctions including the fact that Millennials (ages 18-34) are more likely to merge finances before marriage relative to their older counterparts.
"When merging finances, it's a good idea stop by your local bank and have a conversation about what account options are the best fit for you and your partner's specific needs," said
, Senior Vice President, Head of Retail Deposit Products, TD Bank. "Maintaining multiple accounts may offer better interest rates and combining incomes in a joint account could mean access to premium benefits like reimbursement for out of network ATM costs."
Why Maintain Separate Accounts?
The TD Bank survey indicated that:
Millennials are Moving Quickly
- Thirty-eight percent of individuals in relationships who maintain separate accounts said they do so for independence, making it the top reason for holding individual accounts.
- Forty-three percent of women ranked independence as their top reason for keeping separate accounts, while only 34 percent of men said the same.
- Twenty percent of respondents kept separate accounts to ensure they had funds available for individual needs like emergencies and personal spending.
- Sixteen percent of the total population noted convenience and ease of budgeting and paying bills as a reason to have separate accounts. Men were 38 percent more likely than woman to cite convenience as a reason for keeping separate accounts.
- Only seven percent of respondents cited privacy as a reason to retain an individual account.
Marriage is less likely to be the trigger for opening a joint account with Millennials than with older populations. Only 70 percent of Millennial couples waited until marriage to start a joint account, vs. 88 percent of couples 55 and older, according to the TD Bank survey. Twenty-six percent of Millennials opened their first account when they were living with their partner (vs. 9 percent of 55 and older) and 19 percent merged finances after being engaged (vs. 6 percent of 55 and older).