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Joint bank account guide: What it is and how to open

Joint accounts are best for people working toward a financial goal together.

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By

Bethany Hickey

Reviewed by

Alexa Serrano Cruz

Updated

Fact checked

A joint account is any type of bank account that’s shared by two or more people, giving everyone equal access to the funds. They’re best if you’re looking to pool resources and streamline shared bills. About 43% of domestic relationships have joint assets, according to a survey from CreditCards.com. While joint accounts are convenient and can make budgeting easier, it doesn’t mean you should close your separate personal account.

How joint accounts work

In terms of function, joint accounts are similar to single-owned bank accounts. Although they typically allow up to two account holders, there are some providers that allow three or more people. Each owner gets their own debit card and can make deposits and withdrawals from the account. They’re both also responsible for fees incurred, like overdraft charges. So you should only open a joint bank account with someone you trust.

Although most joint accounts give owners equal access, some banks allow you to add restrictions, such as requiring dual signatures for withdrawals — a particularly common restriction with joint business bank accounts.

4 common types of joint bank accounts

Here are the common types of joint accounts:

1.Joint tenants with rights of survivorship

This is the most common type of joint account. Joint tenants with rights of survivorship accounts are used by domestic partners, married couples or close family members. If one account owner dies, 100% of the funds go to the surviving account owners, and the funds don’t pass through probate.

2.Joint tenants in common account

This option is common with couples and business partners, but it doesn’t carry any rights of survivorship. If an account holder dies, the balance passes through probate.

3.Tenants by the entirety account

This account is commonly used by married couples or life partners. When one account holder dies, the entire balance is automatically transferred to the surviving account holder. However, in most cases, all account holders are needed to sign off on transactions.

4.Convenience accounts

This type of joint bank account allows the primary owner to give someone else the authority to use the funds for their benefit. Convenience accounts are often well-suited for the elderly or individuals who need someone to act on their behalf.

But there aren’t any rights to survivorship, so the money is divided up according to the estate plan once the account owner dies.

Who are joint bank accounts best for?

Joint accounts can prove useful for:

  • Married couples or life partners. Especially useful for couples who already share their finances, having a joint checking account can make money management simpler.
  • Parent and child. Parents can open a joint bank account with their teenager to teach them money management skills or monitor their spending. Or parents can open a shared savings account to set their child up for later.
  • Caregivers. Opening a joint account with a family member or aging parent can be useful if you need to manage their finances on their behalf while caring for them.
  • Business partners. Business co-owners can share a joint business bank account to make money management easier and establish spending transparency.
  • Roommates. Joint accounts can help roommates manage household expenses, allowing everyone to pool their income together to cover things like rent or mortgage.

6 pros of a joint bank account

  1. Save together. Joint accounts can help couples and family members work toward the same financial savings goal.
  2. Fewer fees. Save on potential fees with only one bank account.
  3. Budgeting. With all the money in one place, it’s much easier for families to manage personal finances, including budgeting and paying bills.
  4. Teach children about money management. Parents can monitor spending habits and use the opportunity to teach their kids essential money skills.
  5. Set aside a nestegg. Joint custodial accounts can provide a nest egg for your child to access once they turn 18.
  6. Double amount insured. With a joint account, both owners are FDIC insured up to $250,000 for a combined total of $500,000.

5 things to what to look out for

  1. Complete access to all funds. Unrestricted access to withdraw and spend funds can lead to issues if you or your partner don’t agree on how the money is used or saved.
  2. Shared debts. Depending on where you live, state law may permit creditors to take some or all the money from your joint bank account to satisfy your co-owner’s debt.
  3. Splitting up. If there’s a breakup, splitting the funds amicably may not be possible before closing the account. But in the case of a dispute, involving the courts can be a long and arduous process.
  4. Lack of privacy. Complete transparency is a double-edged sword where you may lose some of your financial independence and privacy.
  5. Potential benefit issues. If you’re the parent of a college student, adding their name to a joint account can impact their eligibility for financial aid since bank accounts in their name are factored into the eligibility process. This is also true if your joint owner is applying for Medicaid or disability benefits.

How to open a joint bank account

Opening a joint bank account with someone is similar to opening a regular checking or savings account on your own. However, some banks don’t allow you to open a joint account unless you already have an account with them.

  1. Shop around. Compare bank accounts until you find one that suits your needs and supports joint accounts.
  2. Apply. Sign up for an account online, by phone or in person at a local branch. If you’re opening a joint account at a branch, you’ll need all account holders present.
  3. Verify your identity. Submit your personal information and proper documentation of the identity of all named owners on the account.
  4. Fund the account. Make your initial opening deposit if the account requires one.

Information you may need

Each account holder must provide the following information:

  • Full name
  • Address
  • Date of birth
  • Social Security number or Taxpayer Identification number
  • Government-issued photo ID, such as a driver’s license or passport
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You may want to keep a separate account

Just because you have a joint account with a life partner or spouse doesn't mean you should close your personal bank account. Unfortunately, things happen, and you may need to set money aside for yourself for emergencies. You may also have your own personal expenses that your partner isn't responsible for, such as student loans or gym memberships. And on a lighter note, keep surprise gifts for your partner a secret by using a personal account rather than a joint account where all account holders can view every transaction.

— Bethany Hickey, Writer, Banking and Loans

Compare joint checking and savings accounts

This table has tabs for joint savings, checking and CD accounts. Once you decide what type of account you’re after, sort the table by APYs, fees, minimum deposits and more. Pro-tip — view multiple accounts side-by-side by ticking the Compare box next to your favorites.

$
Name Product Account type Annual Percentage Yield (APY) FDIC or NCUA insured amount Minimum balance to earn interest Minimum deposit to open Offer Estimated total balance
UFB High Yield Savings
Finder Rating: 5 / 5: ★★★★★
UFB High Yield Savings
Traditional savings

5.25%

Up to $250,000
$0
$0
$1,052.50
Go to site
View details
CIT Bank Savings Builder High Yield Savings Account
Finder Rating: 4.3 / 5: ★★★★★
CIT Bank Savings Builder High Yield Savings Account
Traditional savings

1.00%

0.40%

Up to $250,000
$0
$100
$1,010
Go to site
View details
Discover Online Savings Account
Finder Rating: 4.6 / 5: ★★★★★
Discover Online Savings Account
Traditional savings,Custodial account

4.30%

Up to $250,000
$0
$0
$1,043
Go to site
View details
Discover Money Market
Finder Rating: 3.9 / 5: ★★★★★
Discover Money Market
Money market

4.25%

4.20%

Up to $250,000
$1
$2,500
$1,042.50
Go to site
View details
Wealthfront Cash Account
Finder Rating: 4.6 / 5: ★★★★★
Wealthfront Cash Account

4.80%

Up to $5M FDIC insurance
$1
$1
$1,048
Go to site
View details
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Name Product Fee Minimum deposit to open Annual Percentage Yield (APY) Offer
SoFi Checking and Savings
Finder Rating: 4.5 / 5: ★★★★★
Bonus
SoFi Checking and Savings
$0 per month
$0
4.50% on balances of $0+
0.50% on balances of $0+
1.20% on balances of $0+
Get up to $250 with qualifying direct deposit. Terms apply. This offer is available until December 31, 2023.
Earn up to 4.50% APY on savings by meeting deposit requirements, and 0.50% APY on checking balances. Members without deposit requirements will earn 0.50% APY on both savings and checking balances. Turn on automatic savings or use the Roundups feature to help you reach your savings goals faster. Get up to $2M of additional FDIC insurance through a network of participating banks.
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View details
Discover® Cashback Debit
Finder Rating: 4.8 / 5: ★★★★★
Discover® Cashback Debit
$0 per month
$0
N/A
The Discover® Cashback Debit account earns 1% cash back on up to $3,000 in debit card purchases each month.
Go to site
View details
Axos Bank Rewards Checking
Finder Rating: 4.2 / 5: ★★★★★
Bonus
Axos Bank Rewards Checking
$0 per month
$50
3.30% on balances of $0 to $50,000
Use promo code SUNNYBONUS and apply by December 31st, to earn up to $300 bonus, $50 each month you meet requirements: Make direct deposits of $5,000+ each month for the first 7 months and maintain an average balance of $7,000.
Earn up to 3.3% APY after meeting deposit and spending requirements. Get ATM free reimbursements at all domestic ATMs. Pay $0 monthly or overdraft fees. FDIC insured.
Go to site
View details
Axos Bank Essential Checking
Finder Rating: 5 / 5: ★★★★★
Axos Bank Essential Checking
$0 per month
$0
N/A
Pay $0 monthly and overdraft fees, and get reimbursed for domestic ATM fees. No opening deposit or minimum balance requirement. Get your paycheck up to 2 days early with direct deposit. FDIC insured.
Go to site
View details
Zeta
Finder Rating: 4.3 / 5: ★★★★★
Zeta
$0 per month
$0
2.43% on balances of $0.01+
Zeta Joint Cards allow two people to share one account, making it easy for couples and families to stay on the same page financially.
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View details
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Name Product 6-month APY 1-year APY 5-year APY Minimum deposit to open
CIT Bank Term CDs
Finder Rating: 3.5 / 5: ★★★★★
CIT Bank Term CDs
5.00%
0.30%
0.50%
$1,000
Lock up to a 5% APY with a 6-month CD from CIT Bank, a division of First Citizens Bank with 125 years of experience. $1,000 minimum to open. FDIC insured.
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More Info
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3 tips for a successful joint account ownership

Chances are, you know the person you want to open a joint bank account with — and it can take a lot of trust to share finances. Here are three tips to consider for a successful account partnership:

1. Communication is key

If you’ve decided to take the plunge and open a joint bank account, make sure you talk about these critical issues in advance:

  • Do you pool your income and expenses together?
  • How will you collectively manage your spending?
  • How will you manage your bills? How much and who’s responsible?
  • Are there any pre-existing financial obligations, like child support, loans or other legal fees that need to be dealt with before opening a joint account?
  • If one party earns a higher salary, will they be allowed to spend more?

Then, decide which accounts will be set up as joint accounts and which will remain separate. For example, some couples choose to pool their savings in a joint account while their everyday accounts remain separate. Other couples opt to separate ownership of property, such as their homes, especially when it was purchased before the relationship began.

2. Work out a budget

To make life easier, create a monthly budget and establish clear ground rules. Write down all your weekly expenditures, allowing you to see where the money is going and if there are areas you can cut back to save some money. Then, decide on a budget.

The key is to avoid being too strict and give yourselves some “play” money. Also, check in regularly to ensure you’re on track with your budget and address anything that needs changing or isn’t working. And be sure to discuss large or unnecessary purchases with your partner before pulling the trigger.

If you and your partner aren’t on the same page financially, you may be better off keeping your accounts separate and opening one shared account where you deposit money for bills and other routine payments.

3. Remember your financial goals

By establishing your joint financial goals, you’ll find saving easier when you both work toward the same objective. This includes short-term goals such as an overseas trip and long-term goals like buying a house. If you’re not on the same page, a joint account will be less likely to work. Check in periodically to make sure you’re both on the right track.

How to close a joint account

Depending on the bank, you can close the account online, over the phone or at a physical branch as long as you have identification proving you’re an account holder.

In most cases, only one account holder is required to close a joint account. Though depending on the bank and type of joint account, both parties may need to sign off on it.

Before you close the joint account, be sure you have these things in order:

  • Make sure other account holders consent to closing the account
  • Turn off any automatic bill payments associated with the account
  • Switch any recurring direct deposit to another account
  • Update all subscription services tied to the account

What if I’m going through a divorce?

Depending on the bank, your account might only require one account holder to close the account. This can cause issues if you or your partner close it without the other’s permission and it makes things especially messy if you’re going through a divorce — something that happens to approximately 40% to 50% of first marriages according to the US Census Bureau.

If you’re going through a divorce and you close out your joint account or withdraw a large sum of money, a judge could require you to return the funds. That’s why most lawyers recommend not doing anything drastic with joint accounts until the divorce is finalized and a plan is made.

During divorce proceedings, each spouse is typically entitled to 50% of the account balance, but this isn’t always the case. If one person has bank statements proving they entered the marriage with more money, they could leave with more than half of the funds.

Bottom line

Joint bank accounts are a good idea if you and the other account holders have the same financial goals and budgeting plans. But it’s also beneficial to have your own personal account for individual savings, paying for your personal expenses or emergencies.

If the trust is there, compare savings accounts and checking accounts to find the right fit that helps you both achieve your goals.

  1. 32% of coupled U.S. adults have cheated on their partners financially, CreditCards.com, January 24 2022
  2. Marriage and Divorce Data, US Census Bureau, 2022

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32 Responses

    Default Gravatar
    AJMarch 11, 2020

    Can I direct deposit my checks to a joint checking account?

    Reply
      Default Gravatar
      AshMarch 13, 2020

      Hi AJ,

      Thank you for contacting Finder.

      Yes, you may deposit a personal check named to a single individual to a joint account. Kindly take note that once deposited to the joint account, both of the account holders will have equal rights to the total amount on the account.

      I hope this helps.

      Cheers,
      Ash

      Reply
    Default Gravatar
    SudeysiJuly 9, 2019

    I am going to add another person to my account what happens that day, what information is given to them, what documentation do they have to sign does it take a long time to do?

    Reply
      Default Gravatar
      nikkiangcoJuly 9, 2019

      Hi Sudeysi,

      Thanks for getting in touch with Finder!

      If you plan to add another person to your account, the information shared with the person is any and all details of your account unless otherwise it can be requested with your bank to share limited information. Bank process and documentation will depend on the bank you choose.

      Hope this helps! For any further questions, feel free to reach out to us again, we’re here to help.

      Cheers,
      Nikki

      Reply
    Default Gravatar
    LauraMay 23, 2019

    Hi, I have a joint account with my partner. If he was to get a loan through our bank account would the bank need to ask my permission first or can he get loans without my consent?

    Reply
      AvatarFinder
      BellaMay 24, 2019Finder

      Hi Laura,

      Thanks for your inquiry.

      Since it is a joint account, both parties have access towards the funds unless there is a policy advised that the account could only be accessed with both parties consent. You may need to contact your bank to check if this policy is activated with your joint account.

      I hope this helps.

      Kind regards,
      Bella

      Reply
    Default Gravatar
    DianeMay 6, 2019

    For joint accounts is there only one password.

    Reply
      AvatarFinder
      JeniMay 6, 2019Finder

      Hi Diane,

      Thank you for getting in touch with Finder.

      Since the joint account has only one online account then it has only one password. If you haven’t opened a joint account and considering to open one, please have your queries listed and ask them all to your chosen bank.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

      Reply
    Default Gravatar
    MichaelMarch 7, 2019

    Can I open a new joint account with a person living another state?

    Reply
      AvatarFinder
      JeniMarch 9, 2019Finder

      Hi Michael,

      Thank you for getting in touch with Finder.

      That might be possible as most banks would open joint accounts for unrelated individuals, who may be living from different states. As per this page you’re looking at, so long that both of you and your partner met the eligibility requirements, know the rules, consequences, anything on having a joint account then it is fine if you don’t live under one roof. Please note that the key to a successful joint bank accounts is trust.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

      Reply
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