Bank Account

A bank account that is opened by two or more people is called a joint account. It is usually open to a group of friends or couples. A joint account can be opened by up to four people. It is usually open to sharing expenses for a household, which may include paying bills, funding a business, or both. Sometimes it can be opened to lend money.

You should know something about a joint account. It is recommended to open a joint account with someone you trust. If you open a joint account with someone, they have the right to deposit money into that account, withdraw cash from that account or even close that account without your knowledge or consent. You will repay a bank overdraft that is incurred by your joint account holder, along with some other debts. Having a joint account can cause tax issues and make it difficult for couples to reconcile during a divorce. Find out who the owner of the money is in a joint account.

The account owners usually share 50-50 of the funds in a joint account. If you want to open a joint account, you should trust your account holder and be knowledgeable about how he spends money. You should be aware of how much money he/she makes and how often it’s made. Let’s see how to open a joint bank account.

How to open a joint bank account?

The process of opening a personal and joint bank account is the same. To open a joint bank account, you and your co-owner need to be present at the bank. After that, you and your joint account owner will be asked to fill out a form. You will have to show proof of address or a utility bill after that. There will be a request for proof of identification. Your driver’s license, national identity card, voter’s card, or any other government-approved identity could be included. 

The account holders will sign the terms of the joint account. How the money will be shared among surviving owners if an account holder dies, who is responsible for paying bank overdrafts, and so on are some of the things that may be included in these terms.

Joint Bank Account Rules: Who Owns What?

Bank Account Rules

Except for the account agreement states otherwise, every joint account owner has an equal share of the money. How much each account holder deposits or how often he/she deposits money doesn’t affect the share of each account. One of the account holders may be called the primary holder, but that doesn’t mean they own more than another account holder.

Any joint account holder can close the account at any time, except that there is a restriction in the agreement. A lot of trusts is needed between account holders when opening a joint account. Your account holder can not remove you or add another account holder without your permission. In some banks, your joint account holder won’t be allowed to transfer all the money in the account without your permission. By consistently checking accounts and approving automatic joint account notifications, the excesses of a joint account holder can be put to rest. Have you thought about what would happen if one of the account owners died? Wonder not, read on, and discover for yourself.

What happens if a joint account holder dies?

The terms of the agreement that was signed when the account was opened determine how money is shared in a joint account. Make sure you trust your account owner and read through the agreement before signing it. There are two ways in which the surviving account holders share their money. 100% of your joint account funds will be taken by your joint account holder on the day of your death if the terms of a joint account agreement read “right of survivorship”. The account funds go to the account beneficiaries if all the owners of the joint account pass away. When a joint account is opened, the beneficiary’s names are written. If you agree to the right of survivorship, your funds will be theirs if you die.

On the death of one of the account owners, his/her share of the money is distributed according to his will if the term of the agreement reads “tenancy in common.” The account owner’s share will go to the state law if he doesn’t have a will. Before any of the terms of the agreement can be carried out, there must be a death certificate. When the right of survivorship is used, the surviving account holder can make changes to the account beneficiaries and the terms of the agreement.


It’s easier for couples to manage household expenses if they open a joint account. The money in the joint account is usually a lot so it yields more interest than an individual account. When there is no trust between the account holders, its disadvantages are greater. If your fellow joint account owner has debts, his/her creditor could seize the account. You will take part in repaying the bank if your joint account owner incurs a bank overdraft. To pay off your debts money can be moved from your personal account to your joint account by the bank if you have a personal account in the bank.

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