What you need to do it
Opening a joint savings account requires two or more people, a bank or credit union, and proof of identity. Each person on the account must be present (in person or online, depending on the institution) to sign the paperwork. You will need a government-issued ID—driver's license, passport, or state ID card—for each account holder. Some banks also ask for a Social Security number or tax ID number to verify identity and set up tax reporting.
Decide which bank or credit union you want to use. You can open an account at a traditional bank, an online bank, or a credit union. Each has different requirements, fees, and minimum balances. Some online banks have no minimum balance and lower fees; traditional banks may require a deposit to open the account. Credit unions typically require membership, which may mean living in a certain area or working for a specific employer.
Before you go in or log on, talk with the other account holder about how the account will work. Decide who can withdraw money, whether both signatures are required for large withdrawals, and what happens if one person wants to close the account. These details matter because they affect how the money is legally owned and what happens if the relationship changes.
Key Takeaways
- Both account holders must provide a government-issued ID and typically a Social Security number or tax ID when opening the account.
- You can open a joint account at a bank, credit union, or online bank, and each has different minimum balance requirements and fee structures.
- Joint accounts are usually set up as "joint tenants with rights of survivorship," meaning the surviving account holder owns all the money if one person dies.
- Each person on the account can typically withdraw all the money without permission from the other account holder, unless you specifically request a dual-signature requirement.
- The account will be reported to both people's credit reports if the bank runs a credit check, but a joint savings account itself does not affect credit scores.
Steps to open the account
Contact the bank or credit union and ask about their joint account process. You can call, visit a branch, or start online. Tell them you want to open a joint savings account and ask what documents you need to bring. Some banks let you start the process online and finish in a branch; others require both people to be present from the start.
Gather your documents. Each person needs a government-issued photo ID and a Social Security number or tax ID. If you are opening the account online, you may need to upload photos of your ID. If you are going to a branch, bring the originals. Have your current address ready—the bank will verify it against public records or ask you to provide a recent utility bill or lease.
Meet with the bank representative (or complete the online form together). You will choose the account type—most joint savings accounts are set up as "joint tenants with rights of survivorship," which means if one person dies, the other person automatically owns all the money. Ask the bank if this is the default and whether you can change it. You will also decide on the initial deposit amount. Some banks require a minimum deposit to open; others do not.
Sign the account agreement. Read it carefully or ask the representative to explain any terms you do not understand. The agreement states the fees, the interest rate (if any), and the rules for withdrawals and account closure. Both account holders must sign. Once you sign, the account is open and you can deposit money immediately.
Fees and minimum balances vary by bank
Most banks charge a monthly maintenance fee for joint savings accounts, though some waive it if you keep a certain balance or set up direct deposit. Fees typically range from $0 to $15 per month, depending on the bank. Online banks often have no monthly fee. Credit unions may charge less than traditional banks but may require membership dues.
Minimum balance requirements also vary. Some banks require $100 to $500 to open; others have no minimum. If your balance drops below the minimum, the bank may charge a fee or close the account. Ask about this before you open the account so you know what to expect.
Interest rates on joint savings accounts are usually very low—often less than 0.01% per year at traditional banks. Online banks and credit unions sometimes offer higher rates, though still modest. If you are saving a large amount, compare rates across a few institutions before you decide.
How withdrawals and access work
Each person on a joint account can withdraw money without permission from the other person, unless you specifically request a dual-signature requirement at the time you open the account. This means either account holder can empty the account. If you want to prevent this, ask the bank whether they offer a dual-signature option for withdrawals above a certain amount. Not all banks offer this, so confirm before you open the account.
Both account holders receive a debit card and can use ATMs to withdraw cash. Both can also make transfers online or by phone. The bank will send statements to both people (or to one address if you request it). Each person can see the full transaction history online.
If one person dies, the surviving account holder can access the money immediately without going through probate, because the account is set up as joint tenants with rights of survivorship. The bank will ask for a death certificate and will transfer ownership to the surviving person.
What happens to taxes and credit reports
A joint savings account is reported to both account holders' credit reports if the bank runs a credit check when you open it. However, the account itself does not affect your credit score because it is a savings account, not a credit product. Your credit score is based on borrowed money and how you repay it, not on money you save.
Interest earned on the account is reported to the IRS on a Form 1099-INT if the interest is $10 or more in a year. The bank will send this form to both account holders. Each person is responsible for reporting their share of the interest on their tax return. You can decide how to split the interest (50-50, or another way) when you file your taxes, or you can ask the bank to report it all to one person's Social Security number. Talk to a tax professional about what works best for your situation.
Risks of joint accounts and when to reconsider
The main risk of a joint account is that either person can withdraw all the money without the other's permission. If the relationship ends or trust breaks down, one person can take the money and leave the other with nothing. This is especially risky if one person is financially dependent on the other or if there is a history of financial abuse.
Joint accounts can also complicate things if one person has debt. Creditors can sometimes go after money in a joint account to pay off one person's debt, depending on state law. If you are concerned about this, talk to a lawyer before you open the account.
If you are opening a joint account with someone other than a spouse or long-term partner, consider whether a joint account is the right tool. For example, if you are saving money with a friend for a shared trip, a joint account works. If you are lending money to a family member, a joint account is usually not the right choice—a personal loan agreement is clearer and safer for both people.
Frequently Asked Questions
Do both people have to be present when we open the account?
Most banks require both account holders to be present in person or to verify their identity online at the same time. Some banks let one person start the process and the other person complete it later, but both must sign before the account is active. Call your bank to ask about their specific process.
What if one person wants to close the account?
Either person can close a joint account without permission from the other. When you close it, the remaining balance goes to whoever closes it, unless the bank has a rule about splitting the balance. To avoid this problem, talk about what happens if someone wants to close the account before you open it, and consider whether you need a written agreement between you.
Can we set up the account so both people have to sign off on withdrawals?
Some banks offer dual-signature requirements, but not all. Ask your bank whether this option is available before you open the account. If it is, you can request it in writing when you sign the account agreement. This protects both people but also makes it harder to access money quickly if one person is unavailable.
Will opening a joint account hurt my credit score?
No. A joint savings account does not affect your credit score. The bank may run a credit check when you open the account, which can cause a small temporary dip, but the account itself is not a credit product and will not show up on your credit report as a debt or loan.
What if we break up or get divorced?
A joint account does not automatically split when a relationship ends. Either person can withdraw all the money at any time. If you are going through a divorce, a lawyer can help you freeze the account or divide it fairly. Some courts can order the bank to hold the money until the divorce is final, but you have to ask the court for this protection.