Joint Bank Accounts

What are the benefits of a joint bank account?

There are some benefits to a joint bank account, such as:

• Helps you keep better track of shared expenses.
• Encourages financial responsibility and transparency between account owners.
• Allows owners to pool their income for shared purchases, such as a house, car or vacation.

How can you open a joint bank account?

Opening a joint bank account is similar to opening an individual bank account. You’ll first have to follow these steps:

Gather all necessary documentation

No matter the bank, each applicant should provide a government-issued ID, proof of residence and their tax identification number (often a social security number). This information is required from each person applying to be an owner of a joint bank account.

Apply with your bank of choice

Whether it’s a bank you have a previous account with or a new one, apply to open an account online, by phone, or in person. Make sure to contact the bank to see if they have specific steps for their joint bank accounts.

Make an opening deposit

Deposit money into the bank account so that you establish the account as active. You should also understand the fees for your account, the requirements to maintain your account, and if you can avoid any potential service fees by maintaining a specific balance or performing certain activities.

How can you close a joint bank account?

Any joint account owner may close a joint account. To do so, first stop withdrawing, depositing, transacting and transferring money into that account. After that, you’ll need to withdraw all the funds from that account. It’s not a bad idea to have another bank account open by this time so you can transfer your funds there.

Lastly, you’ll need to request that your bank closes the account. This process can vary depending on the bank, so make sure to consult with your bank to follow their process.

Who should you consider opening a joint bank account with?

Before you open a joint bank account, you should always have an established, trusting relationship with whomever you choose to open the account. Here are some specific groups who may benefit from a joint bank account:

• Married couples or domestic partners: Joint accounts can help couples or partners manage expenses and reach financial goals together
• Parents and teenagers: Joint accounts can be a useful tool for teaching teenagers about managing money. The parents can monitor withdrawals, but the teens will have access to funds.
• Roommates or housemates: Sharing an account can make managing household expenses such as rent, utilities and groceries easier.

What should you look for in a joint bank account?

Since joint bank accounts operate similarly to individual bank accounts, you’ll want to choose a bank that offers services that fit your financial needs and goals.

For example, if your goal for a joint bank account is saving, it’s wise to choose a bank that has interest rates to your liking. If your plan is to use the joint bank account for immediate expenses, you may want to look for a bank account with digital and mobile checking.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.