How to Open a Joint Bank Account

This article was reviewed by Alex Kwan. Alex Kwan is a Certified Public Accountant (CPA) and the CEO of Flex Tax and Consulting Group in the San Francisco Bay Area. He has also served as a Vice President for one of the top five Private Equity Firms. With over a decade of experience practicing public accounting, he specializes in client-centered accounting and consulting, R&D tax services, and the small business sector.

There are 7 references cited in this article, which can be found at the bottom of the page.

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Opening a joint bank account is a relatively simple process. However, agreeing on a form of bank account that works for both you and your co-owner can be slightly more complicated. Before opening the account, make sure you agree on the uses of your joint account. Determine your monthly budget, and decide what will be done with the account if your relationship changes, or if one of you passes away.

Applying for a Basic Joint Account

• If you already bank at the same institution, you may want to open your joint account with them for ease of transfer.
• If you both want to keep your old accounts, but also invest in your community, consider opening a joint account with a local credit union.

• A driver's license
• A state ID
• A passport

• Apply for an Individual Taxpayer Identification Number with the IRS: https://www.irs.gov/forms-pubs/about-form-w7

• Go to the bank together to sign the paperwork agreeing to open a joint bank account.
• If you're just signing up online, you'll need to have the paperwork for both of you on hand.
• If you are opening an account with a minor for whom you are the guardian, you may be asked to sign a permission form allowing them to open the account.

• For instance, if your bank requires a minimum of $300, and you're opening the account with a partner, you will both put in $150.

Picking a Type of Joint Account

• If one partner dies, all of the funds pass on to the surviving owner.
• This account is not subject to probate after an owner dies.
• Creditors can collect against this account, no matter which of you deposited the balance.

• Creditors cannot collect on the total balance of the account, but only on funds acquired by the couple and only with permission of both owners.
• This account is not subject to probate. If one owner dies, the entirety of the balance becomes the property of the surviving owner.

• After the owner's death, funds will be distributed according to their will.
• Creditors may be allowed to collect against the account. If you are the agent, your creditors may ask you to prove that you do not have ownership over the bank account.

• If one owner dies, an estate will distribute their share of the balance according to their will or trust.
• This type of account is subject to probate. If there's no will or trust, the funds of the deceased will be distributed to their closest relatives.
• Creditors may still collect against the entire account, however, even if one partner deposits more money.

• This account is not subject to probate upon the death of an owner.
• Creditors will be able to collect against the account, no matter which one of you deposited the balance.

Create a joint bank account with Power of Attorney (POA). Meet with a lawyer to draft a financial POA, which gives a specified person permission to manage your finances. [10] X Trustworthy Source US Consumer Financial Protection Bureau U.S. government agency for protecting consumers in the financial sector Go to source Whenever you go to the bank, take along a copy of the financial POA so your representative can handle your account without any issues. [11] X Trustworthy Source US Consumer Financial Protection Bureau U.S. government agency for protecting consumers in the financial sector Go to source

Agreeing to Fair Use of Your Joint Banking Account

• Consider depositing the same amount each month.
• Another way to be fair when incomes are different is to each deposit a set amount of the money you make each month. This only works as long as the balance remains above the minimum required.
• If this will be your only bank account, you will simply deposit all your money into it.

• If one of you is in charge of bills, you may pay them all from the account.
• Cancel the joint account if one owner is using it for purchases that were not agreed upon, or switch to a "tenants by the entirety" account.

• If you have a "tenants by the entirety" account, you don't have to worry about this, as your account co-owner will not be able to withdraw any money without your permission.

Community Q&A

Yes you can open an account with some living in a different city. All you need to know is that at the time of opening up that account you all need to be available for signing purposes and also to note you all know the terms and conditions that follow. Lastly, you also need to agree on modalities on how the account will be run.

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Its both a yes and a no why because this all get back to to agreement that signed when opening up the bank account. Of you agreed that its OK to with money from the account with both your signature's then it will be allowed otherwise most joint accounts limit that option. In most cases a withdrawal will happen after both of you have signed on the withdrawal slip.

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Tips

It's important to understand the pros and cons of a joint account, including the potential risks involved. For example, joint accounts can be convenient for couples or family members, but they can also lead to disputes over money if the relationship sours.

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1. ↑https://www.nerdwallet.com/blog/banking/how-to-open-a-bank-account-what-you-need/
2. ↑https://www.consumerfinance.gov/ask-cfpb/can-i-get-a-checking-account-without-a-social-security-number-en-929/
3. ↑https://www.nerdwallet.com/blog/banking/how-to-open-a-bank-account-what-you-need/
4. ↑https://www.nerdwallet.com/blog/banking/how-to-open-a-bank-account-what-you-need/
5. ↑https://wallethub.com/edu/joint-bank-account/14303/
6. ↑https://wallethub.com/edu/joint-bank-account/14303/
7. ↑https://wallethub.com/edu/joint-bank-account/14303/
8. ↑https://wallethub.com/edu/joint-bank-account/14303/
9. ↑https://wallethub.com/edu/joint-bank-account/14303/

1. ↑https://www.consumerfinance.gov/ask-cfpb/what-is-a-power-of-attorney-poa-en-1149/
2. ↑https://www.consumerfinance.gov/ask-cfpb/i-would-like-to-be-able-to-have-my-friend-or-family-member-help-with-my-bill-paying-and-banking-what-are-my-options-en-1145/
3. ↑https://www.nerdwallet.com/blog/banking/joint-checking-account/
4. ↑https://www.nerdwallet.com/blog/banking/joint-checking-account/
5. ↑https://www.barclays.co.uk/current-accounts/bank-account/joint-account/

About This Article

This article was reviewed by Alex Kwan. Alex Kwan is a Certified Public Accountant (CPA) and the CEO of Flex Tax and Consulting Group in the San Francisco Bay Area. He has also served as a Vice President for one of the top five Private Equity Firms. With over a decade of experience practicing public accounting, he specializes in client-centered accounting and consulting, R&D tax services, and the small business sector. This article has been viewed 128,933 times.

To open a joint bank account, first choose a bank you like and that’s easily accessible to you both. If you’re a couple, consider a “Joint tenants with right of survivorship” account, so the funds will still be available if one of you dies. Alternatively, open a “Tenants by the entirety” account if you want both parties to sign off for each transaction. Or, opt for a “Convenience” account to easily manage money for another person. Once you’ve chosen a bank and type of account, check their website to see if you can apply online. If you need to go into a branch, make sure you both bring a form of ID, like a driver’s license, passport, or state ID. Decide how much you’ll deposit together and pay it into your new account. For more tips, including how to manage your new bank account together, read on!