Joint bank accounts (2024)

FAQs

Joint bank accounts? ›

A joint bank account is a checking or savings account that is owned and controlled by two or more people (Your bank may limit how many owners a joint account can have). Any of the account's owners can make deposits into and withdrawals from the account.

Based on our research, Ally Bank has the best joint checking account due to its lack of fees and no minimum deposit requirement. A joint checking account is an easy banking solution for any two people who want to partially or fully share finances, providing each with the ability to manage the funds.

The money in joint accounts belongs to both owners. Either person can withdraw or spend the money at will — even if they weren't the one to deposit the funds. The bank makes no distinction between money deposited by one person or the other, making a joint account useful for handling shared expenses.

Can unmarried couples open joint accounts? One of the most common ways for couples to combine finances is by opening a joint bank account where both parties can deposit and withdraw funds. You can open a joint bank account regardless of your marital status.

Traditionally, joint bank accounts are opened by married couples. But it's not only married couples who can open a joint bank account. Civil partners, unmarried couples who live together, roommates, senior citizens and their caregivers and parents and their children can also open joint bank accounts.

Cons of joint bank accounts

Co-owners on the account are both responsible for fees, such as overdraft charges. If one holder lets debts go unpaid, creditors can go after money in the joint account. Both holders can see transactions in the account, which can present privacy issues.

Experts often recommend that couples contribute to the joint account in proportion to their income. This means that if one partner earns 60% of the household income, they should make 60% of contributions to the joint account.

If you have a joint account, you both may have to pay taxes on a portion of the interest income. However, the bank will only send one 1099-INT tax form. You can ask the bank who will receive the form because that person has to list the income on their tax return.

Opening a joint account adds a financial link to the other person. This means companies will look at both of your credit histories as part of any credit checks.

What are common ways to hold a joint bank account? Most joint bank or credit union accounts are held with “rights of survivorship.” This means that when one account owner dies, the money passes to the surviving owner, or equally to the rest of the owners if there are multiple people on the account.

Can a wife empty a joint bank account? ›

If the funds in your joint bank account are considered separate property and owned exclusively by your spouse, they may legally be able to drain the account. Similarly, even if the account is community property, a spouse may be able to withdraw money for reasonable living expenses, legal fees, and children's expenses.

How to Open a Joint Bank Account. To open a joint account, you must complete an application with the personal details of all the account holders. In addition, some banks may request proof of address and identity in the form of utility bills, passports or driver's licenses.

Both of you have to fulfill the KYC requirements of the bank. Most banks can open joint accounts for unrelated individuals. Savings account doesnt allow too many transactions and offers higher interest rate than current accounts which allow more transactions.

A joint account functions like a standard account, such as a checking or savings account, and allows anyone named on the account to access its funds. All owners can withdraw cash, write checks, and make online payments.

Joint accounts can be useful for managing regular expenses as well as longer-term financial goals. Perhaps you and your partner want to make it easier to pay your rent and utility bills from one pot, or maybe you want to save for a vacation, wedding or house together.

After all, pooling one's resources seems to make a marriage happier and more stable—something most couples want when they first say “I do.” “Couples do seem to be happier when they have a joint account, at least for those first two years of marriage—and possibly later, too,” says Olson.

Sorry, we don't currently offer joint accounts. You can, however, apply to open a Chase account in your own name.