Hispanic Couples maintain separate Bank Accounts

Fifty-two percent of those in relationships that have joint bank accounts also maintain individual accounts, according to research by TD Bank. The study, which is an extension of the TD Bank Checking Experience Index, surveyed more than 1,000 Americans, including 150 Hispanics, 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 (30 percent) to emergencies (21 percent), and use a wide range of account types (18 percent) such as savings, business and more. The survey also identified that Hispanics who opened their first joint account were married (76 percent) followed by Hispanics who lived together (20 percent).

“While the majority of Hispanic couples continue to maintain separate bank accounts, the role of their trusted financial partner is vital especially when saving for the future,” said Lindsay Sacknoff, Senior Vice President, Head of Retail Deposit Products, TD Bank. “Hispanics are looking for a bank that best suits their everyday needs,  provides access to features and benefits associated with joint accounts to cover everyday household expenses and provides support and guidance on making large purchases like buying a first home.”

Why Maintain Separate Accounts?

The TD Bank survey indicated that:

•     Thirty percent of Hispanics in relationships who maintain separate accounts said they do so for independence, making it the top reason for maintaining individual accounts.
•     Twenty-one percent of Hispanic respondents maintained separate accounts to ensure they had funds available for individual needs like emergencies and personal spending.
•     Eighteen percent of Hispanics noted the account type as a reason to keep separate accounts.
•     Sixteen percent of Hispanic respondents noted convenience and ease of budgeting and paying bills as reasons to keep separate accounts.
•     Only four percent of Hispanics cited privacy as a reason to maintain an individual account.

Domestic Expenses Lead to Increased Joint Account Usage

According to TD Bank’s survey, everyday co-habitant expenses play a significant role in the use of joint accounts among Hispanic couples:

•     Eighty percent of Hispanics in relationships use their joint bank accounts for monthly utility bills.
•     Seventy-nine percent of Hispanics in relationships use their joint bank accounts for household purchases such as groceries, furniture, gas and more.
•     Seventy-eight percent of Hispanics in relationships use their joint bank accounts for direct deposit.
•     Seventy-one percent of Hispanics in relationships use their joint bank accounts for savings.
•     Sixty-eight percent of Hispanics in relationships use their joint bank accounts for personal purchases such as clothing, gadgets, gifts and more.