Yes, you can name a beneficiary on most savings accounts

Most banks and credit unions let you name a beneficiary on a savings account — a person or organization who receives the money in that account if you die. The process is straightforward: you fill out a form with the bank, name who gets the account, and the bank keeps that information on file. When you pass away, the beneficiary contacts the bank with a death certificate, and the bank transfers the money directly to them without going through probate (the court process that normally handles your estate).

The rules and forms vary by bank, but the basic idea is the same everywhere. Some banks call this a payable-on-death (POD) account or transfer-on-death (TOD) account. The money stays yours while you're alive — the beneficiary has no claim to it, and you can change your mind at any time.

Key Takeaways

  • You can name one or more beneficiaries on a savings account, and the account stays under your control until you die.
  • The beneficiary form is separate from your will, so naming a beneficiary on the account overrides what your will says about that money.
  • When you die, the beneficiary gives the bank a death certificate and the bank transfers the money directly — no probate court involved.
  • You can change or remove a beneficiary at any time by contacting your bank and filling out a new form.
  • If you name multiple beneficiaries, the bank will split the money equally among them unless you specify different amounts.

How to name a beneficiary at your bank

Contact your bank or credit union and ask for the beneficiary designation form. Some banks call it a POD form, TOD form, or simply a beneficiary form — the name doesn't matter, the function is the same. You can usually get the form in person at a branch, by phone, by mail, or online through your account portal.

On the form, you'll provide the beneficiary's full legal name, date of birth, Social Security number or tax ID, and mailing address. If you want to name more than one person, list each one. You can also specify how much each person gets — for example, 60% to your spouse and 40% to your child — or leave it blank and the bank will split it equally.

Sign the form in front of a bank employee (or notary, depending on your bank's rules), and the bank will file it. Keep a copy for your records. The whole process usually takes less than an hour.

What happens if you name multiple beneficiaries

If you name two or more beneficiaries and don't specify percentages, the bank will divide the account balance equally among them when you die. If you name your two children but want one to receive 70% and the other 30%, write those percentages on the form.

You can also name a backup beneficiary (sometimes called a contingent beneficiary). If your first choice dies before you do, the money goes to the backup instead. For example, you might name your spouse as the primary beneficiary and your adult child as the contingent beneficiary, so if your spouse passes away first, your child receives the account.

How a beneficiary claim works after you die

When you pass away, your beneficiary will need to contact the bank with a certified copy of your death certificate. The bank will verify the beneficiary's identity and confirm that the beneficiary designation is still on file and valid.

The bank then transfers the money directly to the beneficiary — no court order needed. This usually takes one to four weeks, depending on how quickly the bank processes the paperwork and how the beneficiary wants to receive the funds (check, wire transfer, or deposit into their own account).

Because the money passes directly to the beneficiary outside of probate, it's not subject to claims from your creditors or your estate's debts in most states. This is one of the main reasons people use beneficiary designations.

Beneficiary designations override your will

If you have a will that says your savings account should go to one person, but your beneficiary form names someone else, the beneficiary form wins. The bank will follow the beneficiary designation on file, not what your will says.

This matters if your life changes — you get divorced, remarried, or have a falling out with someone you named years ago. You need to update the beneficiary form itself, not just update your will. Updating your will alone won't change where the money goes.

Changing or removing a beneficiary

You can change your beneficiary at any time while you're alive. Contact your bank, ask for a new beneficiary form, and fill it out with the new person's information. Sign it and submit it to the bank. The new form replaces the old one.

If you want to remove a beneficiary entirely and have no one inherit the account, you can do that too — just submit a blank or cancelled beneficiary form. If there's no beneficiary on file when you die, the account becomes part of your estate and goes through probate.

Who you can name as a beneficiary

You can name almost anyone: a spouse, adult child, parent, sibling, friend, or even a charity or nonprofit organization. You can also name your estate (though this defeats the purpose of avoiding probate) or a trust.

You cannot name a minor child directly on most accounts — if you do, the bank may freeze the money until the child turns 18 or 21, depending on state law. If you want to leave money to a child, consider naming a trusted adult as beneficiary with instructions to manage it for the child, or set up a trust and name the trust as the beneficiary.

Frequently Asked Questions

Can I name my estate as the beneficiary?

Yes, but it's usually not a good idea. If you name your estate, the money goes through probate like everything else, which takes months and costs money in court fees. Naming a person or charity directly keeps the money out of probate.

What if the beneficiary dies before I do?

If you named only one beneficiary and they die before you, the account becomes part of your estate when you die and goes through probate. This is why naming a contingent (backup) beneficiary is a good idea — if your first choice dies, the money goes to the backup instead.

Does naming a beneficiary affect my taxes?

Naming a beneficiary doesn't create a tax event while you're alive. When you die, the beneficiary may owe federal estate tax if your total estate is very large (over $13.61 million in 2024, though this changes yearly), but most people's estates are smaller than that. Talk to a tax professional about your specific situation.

Can a creditor claim the money if I name a beneficiary?

In most states, money that passes to a beneficiary outside of probate is protected from your creditors. However, some states allow creditors to make claims against beneficiary accounts in certain situations. Check your state's rules or ask your bank.

What if I change my mind after naming a beneficiary?

You can change or remove a beneficiary anytime by contacting your bank and submitting a new form. The new designation replaces the old one immediately. Make sure to keep copies of all your beneficiary forms so you know what's currently on file.