How does FDIC insurance work with joint bank accounts?

FDIC insurance covers up to $250,000 per owner, per insured bank, per account category. That means a two-person joint account is insured for up to $500,000 total.

Are there free joint bank accounts?

Yes. Many online banks offer joint accounts with no monthly fees and no minimum balance requirements.

Who legally owns money in a joint account?

In most cases, each account holder has equal ownership of the account and is responsible for any debts or overdrafts on the account.

Is it illegal to take all the money out of a joint account?

No. It’s not illegal since either party can withdraw all the money from a joint account. That said, doing so without the other person’s consent could cause civil issues, especially in divorces, estates or business arrangements.

What is the disadvantage of a joint bank account?

The biggest disadvantage of a joint bank account is shared liability since all owners are responsible for overdrafts and fees. There’s also not much financial privacy, since everyone can see the account history.