Yes, two people can open a bank account together, and it's called a joint account
A joint account is a single bank account owned and controlled by two or more people. Both account holders can deposit money, withdraw funds, write checks, and make transactions without permission from the other person. The bank treats the account as belonging equally to everyone on it, regardless of who deposited what money.
Joint accounts are common for couples, family members, business partners, and roommates. They simplify shared expenses because both people can access the same money. However, this also means either person can empty the account without the other's consent, so joint accounts work best when there's trust between the account holders.
Key Takeaways
- Both account holders on a joint account have full access to all funds and can withdraw money or close the account without permission from the other person.
- You will need to visit the bank in person with both people present, bring government-issued ID for each person, and provide a Social Security number or ITIN for each account holder.
- Joint accounts are owned with "rights of survivorship" at most banks, meaning if one person dies, the surviving account holder automatically owns the full balance.
- Each person's banking activity on the joint account appears on both credit reports if the bank reports to credit bureaus, and unpaid overdrafts can affect both people's credit scores.
What you need to bring to open a joint account
Both people must be present at the bank branch to open a joint account. Bring a government-issued photo ID for each person—a driver's license, passport, or state ID card. The bank will also ask for a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for each account holder so they can verify identity and check for fraud.
Some banks ask for a second form of ID or proof of address, such as a utility bill or lease dated within the last 60 days. Call your bank ahead of time to confirm what documents they require, since requirements vary by institution and by state. If either person does not have an SSN or ITIN, ask the bank whether they offer accounts for non-citizens—some do, though they may require additional documentation.
How the account is legally structured
At most banks, a joint account is set up with rights of survivorship. This means if one account holder dies, the surviving person automatically owns the entire account balance without going through probate court. The money does not become part of the deceased person's estate.
Some states and banks offer an alternative called tenants in common, where each person's share of the account is treated as part of their estate if they die. This is less common and usually requires you to request it specifically. If you want tenants in common instead of survivorship, ask the bank whether they offer it and what paperwork you need to sign.
Either way, both people have equal legal rights to the full account balance while both are alive. The bank does not track who contributed what money, and one person cannot restrict the other's access.
What happens if one person wants to close the account
Either account holder can close a joint account without the other person's permission or knowledge. The person who closes it can withdraw the full balance, leaving nothing for the other person. This is a real risk if trust breaks down—for example, during a divorce or after a falling out with a business partner.
If you are concerned about this, consider a joint account with restrictions instead. Some banks offer accounts where both people must sign off on large withdrawals or account changes, though these are less common and may cost more in monthly fees. Ask your bank what options they have for accounts that require dual approval.
Another option is to keep separate accounts and use a shared savings account only for money you both agree to pool. This way, each person retains control over their own funds.
How joint accounts affect credit reports and debt
If the bank reports account activity to credit bureaus, the joint account will appear on both people's credit reports. This means overdrafts, late fees, or other negative activity can damage both credit scores, even if only one person caused the problem.
If the account goes into overdraft and the bank pursues collection, both account holders can be held responsible for the debt. A creditor can pursue either person for the full amount owed, not just their share. This is important to understand before opening a joint account with someone whose financial habits you do not know well.
Positive activity—on-time deposits and a healthy balance—can help both people's credit if the bank reports it. However, most banks do not report savings account activity to credit bureaus, so a joint savings account typically will not build credit for either person.
Joint accounts versus other ways to share money
A joint account is not the only way to manage shared money. Here are the main alternatives:
Authorized user: One person is the primary account holder, and the other is added as an authorized user. The authorized user can access the account but the primary holder retains legal ownership and can remove them at any time. This is less risky if you do not fully trust the other person.
Power of attorney: One person gives another legal authority to manage their account without being a joint owner. This is common when an adult child manages finances for an aging parent. The account remains in one person's name.
Separate accounts with transfers: Each person keeps their own account and transfers money to a shared pool as needed. This gives each person control over their own funds and is simpler to unwind if the arrangement ends.
Payable-on-death account: One person owns the account but names another person to receive the balance if they die. The named person has no access while the owner is alive.
Fees and account types for joint accounts
Most banks offer joint checking and savings accounts at the same cost as individual accounts. Some banks charge a small monthly fee for joint accounts—typically $5 to $15 per month—while others waive the fee if you maintain a minimum balance or set up direct deposit.
Joint accounts are available as checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). The account type you choose depends on how you plan to use the money. A joint checking account works well for shared household expenses. A joint savings account is better if you are saving toward a goal together, like a vacation or down payment.
Compare fees and features across banks before you open. Some banks offer higher interest rates on savings accounts, lower overdraft fees, or waived monthly fees for joint accounts. Online banks often have lower fees than brick-and-mortar banks, though you may need to open the account online and then visit a branch to complete the process.
Frequently Asked Questions
Can one person on a joint account remove the other person?
Yes. Either account holder can remove the other person from the account or close it entirely without permission. If you are concerned about this, ask the bank whether they offer accounts that require both people to sign off on changes. Some banks will not allow removal without both signatures, though this is uncommon.
What happens to a joint account if one person dies?
If the account has rights of survivorship, the surviving person automatically owns the full balance. The account does not go through probate. If the account is set up as tenants in common, the deceased person's share becomes part of their estate and goes through probate court.
Do I need to tell the IRS about a joint account?
No. The IRS does not require you to report a joint account. However, if the account earns interest, the bank will send a 1099-INT form to both account holders, and each person must report their share of the interest on their tax return. The bank may split the interest equally or report it all to one person—ask your bank how they handle this.
Can I open a joint account online?
Some banks allow you to start the process online, but most require both people to visit a branch in person to verify identity and sign the account agreement. A few online-only banks may allow you to complete the entire process remotely using video verification, but this is rare. Call your bank to ask whether they offer remote joint account opening.
What if one person on the joint account has bad credit?
The bank will not deny a joint account based on one person's credit history. However, if the account goes into overdraft or debt, both people can be held responsible. If one person has a history of overdrafts or unpaid debts, opening a joint account with them carries risk.