A joint bank account is a savings or checking account that has more than one account holder. Each account holder has the same right to make withdrawals and deposits. If it is a joint checking account, each account holder will receive a debit card and checks.

Reasons to get a joint bank account

There are many reasons why you might want to open a joint bank account. Perhaps you want to open a joint bank account with your partner or spouse to pay for shared household expenses. Alternatively, you might want to open a joint bank account with your child, whether they are young and you want to start teaching them about saving their money, or they are college-aged and you want to monitor their transactions. Or maybe you want to open a joint bank account with a business partner. This is to say you can open a joint bank account with anyone, including a:

• Spouse
• Parent
• Sibling
• Friend
• Business partner

Complications with getting a joint bank account

If you’re thinking of opening a joint bank account with someone, you need to be sure that you trust that person. You may encounter some complications after you open a joint bank account so here is a list of considerations to keep in mind:

• A single account holder can empty the account at any time without permission from the other account holder. This can be a problem that arises out of a breakup or divorce, for example. 
• If you’re in a household where joint account holders make different amounts of money, one holder can feel like they’re contributing more or less. Arguments about this can be prevented with a good pattern of communication about financial issues.
• All of the joint account holders can see every transaction on the account. This means that there is no privacy between joint account holders, which can be potentially uncomfortable.
• If one account holder mismanages funds, all account holders are held responsible for it.
• If one account holder has debts, creditors can come after the funds in a joint account to satisfy those debts. This is the case regardless of who deposited the funds in the joint account. 

How do I open a joint bank account?

If you are sure you want to open a joint bank account, each account holder will need to complete the bank or credit union’s application. Please see your bank for the appropriate application. Additionally, each account holder must provide a valid government-issued I.D., such as a social security card, driver’s license, state I.D. card, or passport. Your bank will have the exact list of what they require. Learn more about how to open a bank account. 

What happens if one of the bank account holders passes away?

The majority of joint bank accounts have a built-in “right of survivorship.” This means that if one account holder passes away, this feature will allow another joint account holder to keep access to the shared account. Additionally, the money in the account doesn’t have to go through probate. Instead, the money and account ownership passes directly to the other account holder(s). This is important to note if you want your money to go somewhere other than to the other account holder(s). The “right of survivorship” will override a will.