What happens when you open a joint account
When you open a joint savings account, both account holders own the money equally and can withdraw it without permission from the other person. The bank treats the account as owned by both of you together, not as two separate accounts. Either person can deposit money, withdraw money, close the account, or change account settings.
Most banks require both people to be present at the branch to open the account, though some allow one person to open it and add the other person later. You will need to provide identification for both account holders, proof of address (usually a recent utility bill or lease), and a Social Security number or tax ID for each person. The bank will run a background check through ChexSystems, which tracks banking history—not credit history.
Once the account is open, both names appear on the account statements, debit cards, and any paperwork the bank sends. The money in the account is legally owned by both people, which matters if one account holder dies or if you separate.
Key Takeaways
- Both account holders can withdraw all the money without asking permission, so only open a joint account with someone you trust completely.
- You will need identification, proof of address, and a Social Security number for each person to open the account at a bank branch.
- Money in a joint account passes to the surviving account holder automatically if one person dies, bypassing probate.
- If you separate or divorce, the account remains joint until both people agree to close it or split the funds, which can create disputes.
- Some banks charge monthly fees for joint accounts, while others waive fees if you maintain a minimum balance or set up direct deposit.
Which banks offer joint savings accounts and what they cost
Nearly every bank and credit union offers joint savings accounts. The main difference is whether they charge a monthly maintenance fee and what the minimum balance requirement is. Chase, Bank of America, Wells Fargo, and Citibank all offer joint savings accounts with monthly fees ranging from $0 to $5, depending on the account type and whether you meet balance or direct deposit requirements. Credit unions typically charge lower fees or no fees at all, but you must be a member to open an account.
Online banks like Ally, Marcus, and Discover often have no monthly fees and higher interest rates on savings, but they do not have physical branches—all account management happens through their website or app. If you need to deposit cash or speak to someone in person, an online bank may not work for you.
Interest rates on joint savings accounts vary widely. As of now, online banks typically offer rates between 4% and 5% annual percentage yield (APY), while traditional banks offer much lower rates, often below 0.5% APY. The difference matters if you are saving a large amount for a long time.
Steps to open a joint account in person at a bank branch
Call the bank ahead of time to confirm they can open a joint account and ask whether both people need to be present. Most banks require it, but policies vary. Bring a government-issued photo ID for each person (driver's license, passport, or state ID card), proof of address for each person (a recent utility bill, lease, or bank statement), and your Social Security numbers or tax IDs.
Go to the branch together during business hours. Tell the banker you want to open a joint savings account. The banker will ask you to choose an account type (some banks offer different joint savings products), decide on a starting deposit amount, and choose whether you want debit cards, online access, or both. The banker will run a ChexSystems check on both people—this is not a credit check and does not affect your credit score.
Sign the account agreement, which outlines the terms, fees, and what happens if one account holder dies. Ask the banker to explain any part you do not understand before you sign. You will receive debit cards, online login information, and account statements. Some banks mail these items; others give them to you in the branch.
Opening a joint account online or by mail
Some online banks and a few traditional banks allow one person to open a joint account online and add the other person later. The first person creates the account, provides their identification and Social Security number, and makes the initial deposit. The bank then sends an invitation to the second person, who completes their own identity verification and agrees to the account terms.
This process takes longer than opening in person because the bank must verify each person's identity separately, often through a video call or by uploading documents. The entire process can take 5 to 10 business days. You will not have access to the account until both people have completed verification.
A few banks still allow you to open an account by mail, though this is rare. You would fill out an application, provide copies of identification and proof of address, and mail everything to the bank. This method is slow—typically 2 to 3 weeks—and the bank may call you to verify information before opening the account.
What to know about money ownership and rights
In a joint account with right of survivorship, the money automatically passes to the surviving account holder if one person dies. This happens outside of probate, meaning the surviving person can access the money immediately without waiting for a court process. Most joint accounts are set up this way by default.
In a joint account without right of survivorship (called "tenants in common"), the deceased person's share of the account becomes part of their estate and goes through probate. The surviving account holder does not automatically own the full balance. This is rare for joint savings accounts but common for joint investment accounts.
Both account holders have equal legal rights to all the money in the account. Neither person can prevent the other from withdrawing funds. If one person withdraws all the money without the other's knowledge, the second person has no legal recourse through the bank—the money was theirs to take. This is why joint accounts only work when there is complete trust.
Managing the account after it is open
Set up online access for both account holders so you can both see deposits, withdrawals, and the current balance. Most banks allow you to set up alerts that notify you by email or text when the balance drops below a certain amount or when a withdrawal over a certain amount occurs. These alerts help catch unauthorized withdrawals quickly.
Decide together how you will use the account. Will you both deposit money regularly? Will one person handle deposits and the other handle withdrawals? Will you use it only for shared expenses, or for general savings? The clearer your agreement, the fewer surprises you will have.
If you want to add a third person to the account later, contact the bank and ask about their process. Some banks allow you to add someone without closing the account; others require you to close it and open a new one. Adding someone requires that person's identification and Social Security number, just like the original opening.
What happens if you want to close the account or separate
If you and the other account holder agree to close the account, either person can contact the bank and request closure. The bank will ask what you want to do with the remaining balance—transfer it to another account, receive a check, or split it between two accounts. If you want to split the money, you must both agree on the amount each person receives. The bank will not divide it for you.
If you separate or divorce and cannot agree on what to do with the account, the account remains joint and accessible to both people unless a court orders otherwise. A divorce decree does not automatically close a joint account or change ownership. You will need to contact the bank with a copy of the court order to change the account structure. Until then, either person can still withdraw all the money.
If one account holder dies, the surviving person should contact the bank with a death certificate. The bank will close the account and transfer the money to the surviving account holder (if the account has right of survivorship) or hold it pending instructions from the estate.
Frequently Asked Questions
Can I open a joint account if one person has bad credit or a ChexSystems record?
Joint accounts do not require a credit check, so bad credit will not stop you from opening one. However, a negative ChexSystems record (such as unpaid overdrafts or fraud) may cause the bank to deny the account. Each bank has different policies about ChexSystems records. Call ahead and ask whether the bank will open an account for someone with a record.
What if one person wants to close the account and the other does not?
Either person can close a joint account unilaterally—you do not need permission from the other person. However, if there is money in the account, the bank will ask what to do with it. If you close the account and withdraw all the money without the other person's agreement, they will have no legal recourse through the bank, though they may have options through a court if you are in a legal relationship like marriage or a domestic partnership.
Do joint account holders have to pay taxes on the interest earned?
Yes. The bank will send a 1099-INT form to both account holders showing the interest earned. Each person must report their share of the interest on their tax return. How you split the interest depends on your agreement—you can split it 50/50, or however you decide. The bank does not track who earned what; that is between you and the IRS.
Can I remove someone from a joint account without closing it?
No. You cannot remove one person from a joint account while keeping it open. You must close the account and open a new one in a single name, or open a new joint account with different people. When you close the account, you will need to decide what happens to the money—transfer it, receive a check, or split it.
What if the other account holder dies and I do not have a death certificate yet?
Contact the bank as soon as possible and tell them about the death. The bank will freeze the account to prevent further withdrawals while you gather the death certificate. Once you provide it, the bank will transfer the money to you if the account has right of survivorship. This usually takes 5 to 10 business days after the bank receives the certificate.