When I was growing up, money was never a hush-hush topic at home. From a young age, I learned about our family’s income streams, investments, fixed deposits, and home loans. I’d heard of couples sharing joint accounts, and family members being made benefactors. But last week, while talking to a friend at work, I came across the concept of friends sharing a bank account. And I was truly floored.

“So, the three of you decided to pool money together, and only one of you can access the account?” I asked, flabbergasted. Shivam Agarwal laughed and said, “Yeah, I get to add and take the money out. They just need to tell me how much.”

He was completely unaware of the numerous questions popping up in my head.

Forget how much money, passwords, and benefactors, my mind screeched to a halt at a simple thought. “There are actual people who trust their friends with their hard-earned money? So much trust?”

Apparently so, if Bageshri Banerjee is to go by. The Bengaluru-based writer started a shared account with two of her best buddies from college. “It started out as an emergency fund, which came in super handy when I had to get a tetanus shot,” she told indianexpress.com.

While there is no set amount they put in every month, and no end date so far, Banerjee said the account is an attempt to feel connected to her friends. “We just want to feel like we are back to those good old college days,” she admitted.

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When asked if this was the only financial instrument they save in, she said, “Nope, all three of us are pretty financially literate. We invest in mutual funds, stocks, and have other savings accounts.”

Adhil Shetty, CEO, Bankbazaar, said Gen Z’s approach to managing money is changing with the growth of fintech and digital banking. Newer tools make it easier to track spending, split expenses, save toward goals, and invest small amounts.

“For friends who choose to manage expenses or finances together, these tools also improve transparency and accountability by making it easier to track contributions and spending,” Shetty said.

Just a Gen Z trend?

At this point, I was more curious than ever. So, I shot a quick text to the group chat with two of my closest friends. I asked them what they thought about having a shared bank account.

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Texts my friends receive on a regular basis.

Shalaka Kachare, hailing from Aurangabad, shared something interesting. “It’s a good thing. You know, over here, we have women who do this. It’s called Bachat Gat, which means ‘saving group’, where every month they put some amount that can be used as a savings account among them all,” she shared.

A popular concept in Maharashtra apparently, and one that “runs on complete trust,” added the junior content associate at Sportz Interactive.

A quick search online proved her right.

According to the official website of Jalgaon district, Bachat Gat is a Self-Help Group or a small, community-based group of usually 10 to 20 people, most often women, who meet regularly to save a small, fixed amount of money, pool their resources, and provide small loans to members in times of need or to start small businesses.

Sanjana B, from Bengaluru, echoed her sentiments, sharing that some of her relatives are involved in this activity as well. “It’s usually homemakers doing this, or women without sources of income, because their husbands are unreliable,” she added.

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Know what you are getting into — and with who

However, it’s no surprise that money can be a sensitive subject, even among close friends.

Drishti Khandelwal said the biggest challenge is maintaining transparency and ensuring everyone shares the same understanding of contributions and withdrawals. “Even a small misunderstanding about who spent what or why money was withdrawn can create unnecessary tension in a friendship,” the PR consultant told indianexpress.com.

According to her, when friends regularly contribute towards a common goal, having a shared pool of money can make things much simpler. “Whether it is for a trip, a common activity, or even maintaining a fund for plans, everyone knows how much has been contributed and how the money is being used,” she added.

What to keep in mind

Rahul Banerjee, Founder and Managing Director, PGP Academy, a financial planning and wealth management education institute, said a shared bank account can seem like a convenient solution when friends, business partners, or people with a common financial goal want to pool money. Still, convenience should never replace clarity.

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“Before opening such an account, the first question should be: Why do we need a joint account, and what exactly is each person responsible for?” he said.

According to him, the principle is simple: shared money requires shared accountability.

“If the account is between friends, family members or business associates, people should discuss expectations in advance, document important arrangements, maintain transparency and never compromise on banking security merely because there is personal trust,” he said.

Good financial planning is not about distrusting people — it is all about creating clarity so that relationships do not have to bear the burden of financial ambiguity.

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Khandelwal also added that a shared account should never replace personal financial independence. “It is better to keep the joint money limited to a specific purpose rather than combining all personal finances,” she said.

For her, the biggest advantage of pooling money with friends is accountability. When several people work toward the same financial goal, it becomes easier to stay disciplined. But ultimately, she believes this arrangement works only when there is “mutual trust, transparency and financial responsibility”.

Friendship may bring people together, but clear financial boundaries are what keep the arrangement healthy.

Rahul Banerjee said that common mistakes include assuming that trust between individuals automatically translates into financial safeguards. It does not.

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Operating mandate chosen with the bank also matters. (Magnific)

What to avoid

PGP Academy’s Banerjee said joint-account holders should clearly agree on the account’s purpose, who can deposit or withdraw money, what transactions are permitted, how expenses will be recorded, and what happens if one person wants to exit the arrangement.

The operating mandate chosen with the bank also matters, because different mandates can determine how the account is operated and how balances are handled in certain circumstances.

“RBI guidelines specifically recognise joint-account arrangements such as ‘Either or Survivor’ and advise banks to examine the purpose, nature of business and financial position of parties when opening joint accounts,” he added.

Another important principle is separation.

Banerjee said a joint account should ideally serve a defined purpose over becoming a substitute for individual banking.

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“Personal savings, salaries and long-term investments should generally remain clearly separated from money being pooled for a specific shared objective. Keeping transaction records and reviewing statements regularly can also prevent misunderstandings later,” he elaborates, adding that the need for caution is particularly relevant in today’s digital banking environment, in conclusion.