Yes, You Can Open a Joint Savings Account — Here's How It Works

Yes, you can open a joint savings account

A joint savings account is a bank account owned by two or more people. Each owner can deposit money, withdraw money, and make decisions about the account without asking permission from the other owners. The bank treats all owners as equally responsible for the account, which means any owner can close it, move the money, or change the terms.

Most banks and credit unions offer joint accounts. You can open one in person at a branch, online, or by phone. The process usually takes 15 to 30 minutes and requires identification and a Social Security number from each owner.

Key Takeaways

• Any owner of a joint account can withdraw all the money or close the account without permission from the other owners.
• When one owner dies, the money in a joint account with survivorship rights passes directly to the surviving owner outside of probate.
• Each owner's creditors can go after the full balance in the account, not just that owner's share.
• You need a government-issued ID and Social Security number for each owner, plus an initial deposit that varies by bank.
• Joint accounts are different from accounts with power of attorney, where one person manages money on behalf of another but does not own it.

Who can own a joint account with you

You can open a joint account with a spouse, adult child, parent, sibling, business partner, or anyone else over 18. Both owners must be present or provide signed consent, depending on the bank's rules. Some banks require both owners to be present in person; others allow one owner to open the account and add the second owner later by mail or online.

You cannot open a joint account for a minor child in most cases. Instead, you would open a custodial account or a guardianship account where you control the money until the child reaches the age of majority (usually 18 or 21, depending on your state).

What happens to the money if one owner dies

Most joint accounts are set up with survivorship rights, which means the surviving owner automatically inherits the full balance when the other owner dies. The money does not go through probate court and does not become part of the deceased owner's estate. This transfer happens outside the will.

If the account does not have survivorship rights, the money becomes part of the deceased owner's estate and is distributed according to their will or state law. Ask your bank whether your account has survivorship rights when you open it, because the default varies by bank and state.

Survivorship rights can create problems if you have a will that says something different. For example, if your will says your money should go to your children but your joint account has survivorship rights that pass it to your spouse, the account money goes to your spouse regardless of what the will says.

The risks of joint account ownership

Any owner can withdraw the entire balance without permission from the other owners. This is the biggest risk of a joint account. If you add someone to your account, you are giving them full access to that money. There is no way to restrict one owner's withdrawals or require both owners to sign off on large transactions.

If one owner has debts, creditors can freeze or seize the entire joint account balance, not just that owner's share. This applies to credit card debt, medical debt, tax debt, and court judgments. The other owner's money is at risk even if they did not create the debt.

If one owner files for bankruptcy, the joint account may be included in the bankruptcy proceedings. The trustee can use the account to pay creditors, even if the other owner contributed most of the money.

Joint accounts can also complicate divorce. The account is considered marital property in most states, and both owners have equal claim to it during a divorce settlement, regardless of who deposited the money.

Minimum deposits and account fees

Most banks require an opening deposit of $25 to $500 to start a joint account. Some online banks have no minimum. The deposit becomes part of your account balance.

Monthly maintenance fees range from $0 to $15, depending on the bank and account type. Many banks waive the fee if you maintain a minimum balance (often $500 to $1,500) or set up direct deposit. Some banks charge no fees at all.

Interest rates on joint savings accounts vary widely. Online banks typically offer higher rates (currently 4% to 5% annual percentage yield, though this changes) than traditional banks (often under 0.5%). The rate applies to the full balance regardless of how many owners the account has.

Joint accounts versus other ways to share money

A power of attorney lets one person manage money on behalf of another without making them a co-owner. The person with power of attorney can withdraw money and pay bills, but they do not own the account. When the account holder dies, the power of attorney ends and the money goes according to the will. This is safer if you want someone to help manage your money but do not want to give them full ownership.

A payable-on-death account (POD) lets you name a beneficiary who inherits the money when you die, similar to survivorship rights in a joint account. But with a POD account, the beneficiary has no access to the money while you are alive. You keep full control. This is useful if you want someone to inherit money but do not want them to have access now.

A trust can hold money for multiple people and specify exactly how it should be used and distributed. Trusts are more complex and expensive to set up than joint accounts, but they give you much more control over what happens to the money.

How to open a joint savings account

Choose a bank or credit union. Most major banks (Chase, Bank of America, Wells Fargo, Citibank) and online banks (Ally, Marcus, Discover) offer joint accounts. Credit unions often have lower fees and higher interest rates.

Gather documents. You will need a government-issued ID (driver's license, passport, or state ID) and a Social Security number for each owner. Some banks also ask for a phone number and email address.

Decide on account type. Choose between a regular savings account, a high-yield savings account (which pays more interest), or a money market account. Ask whether the account will have survivorship rights.

Open the account. You can do this online, in person, or by phone. If opening online or by phone, both owners may need to verify their identity. Some banks require both owners to be present in person.

Make your opening deposit. This can be done by check, bank transfer, or cash, depending on the bank.

Frequently Asked Questions

Can I remove someone from a joint account?

Yes, but the process varies by bank. Some banks allow any owner to remove another owner unilaterally. Others require both owners to agree or require the person being removed to be present. Call your bank to ask their specific policy. Removing someone does not affect their legal claim to money they deposited while they were an owner.

What if I want to add someone to my existing account?

Contact your bank and ask to add an authorized user or co-owner. Adding a co-owner gives them full access and ownership rights. Adding an authorized user (if your bank offers this) may give them access to withdraw money but not ownership. Clarify which option you want before you proceed.

Do I pay taxes on interest in a joint account?

Yes. The bank reports interest earned on the account to the IRS. If the account earns more than $10 in interest in a year, the bank sends a 1099-INT form to both owners. You each report your share of the interest on your tax return, though the bank may report it all to one owner's Social Security number.

What happens if one owner wants to close the account and the other does not?

Any owner can close a joint account unilaterally at most banks. The closing owner can withdraw the full balance or leave it for the other owner to access. This is why joint accounts carry risk — there is no legal requirement for both owners to agree to close it.

Can I have a joint account with someone who is not a U.S. citizen?

Yes, but they will need an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Some banks accept ITINs; others do not. Call ahead to confirm your bank's policy before you visit.