The five things to verify before you sign
Before you and another person open a joint checking account, you need to know how the bank will treat the money if something happens to one of you, what fees you'll both pay, and whether both of you can withdraw everything or only your own deposits. These details vary by bank and by account type, so asking specific questions now prevents surprises later.
The bank's answers to these five questions should be in writing — either in the account agreement or in a separate document you can keep. If the bank won't put the answer in writing, that's a warning sign to ask why.
Key Takeaways
- Ask whether the account is "joint tenants with rights of survivorship" or "tenants in common" — this determines who owns the money if one person dies.
- Request the full fee schedule in writing, including monthly maintenance fees, overdraft fees, and fees for closing the account early.
- Confirm whether both account holders can withdraw all the money or only their own deposits, since this varies by bank and state.
- Find out what happens to the account if one person becomes unable to manage money due to illness or injury.
- Check whether the bank reports account activity to both people's credit reports, since joint accounts sometimes affect your credit differently than individual accounts.
Ownership and what happens if one person dies
Ask the bank whether the account will be set up as joint tenants with rights of survivorship or as tenants in common. These are legal terms that determine who owns the money if one account holder dies.
With rights of survivorship, the surviving account holder automatically owns all the money in the account when the other person dies — the money does not go through probate (the court process that distributes a person's property after death). With tenants in common, each person's share of the account goes to their estate and is distributed according to their will or state law, which takes longer and costs more.
Most banks set up joint checking accounts as joint tenants with rights of survivorship by default, but you should confirm this in writing before you open the account. If you want something different, tell the bank before you sign.
Monthly fees and overdraft charges
Request the complete fee schedule for the specific account type you're considering. This should list the monthly maintenance fee (if any), the overdraft fee (the charge if the account goes negative), and any fees for closing the account early or removing a person from the account.
Some banks charge different fees for joint accounts than for individual accounts. Some waive the monthly fee if you keep a minimum balance or set up direct deposit. Some charge an overdraft fee every time the account goes negative, even if it's negative for only one day. Write down the fees and compare them across at least two banks before you decide.
Also ask whether both account holders are responsible for overdraft fees or only the person who made the withdrawal that caused the overdraft. The answer varies by bank.
Who can withdraw money and how much
Confirm in writing whether both account holders have equal access to all the money or whether each person can only withdraw the amount they deposited. This is a critical difference that affects how you use the account.
Most banks allow either account holder to withdraw the entire balance, regardless of who deposited the money. This works well for couples managing shared household expenses, but it means one person could empty the account without the other's permission. Some banks in some states allow you to set up the account so each person can only withdraw their own deposits, but this is less common and you have to request it specifically.
Ask the bank what their default is, and ask whether you can change it. Get the answer in writing.
What happens if one person becomes incapacitated
Ask the bank what happens to the account if one account holder becomes unable to manage money due to illness, injury, or cognitive decline. Can the other person still access the account and pay bills? Does the bank freeze the account? Will they require a court order or a power of attorney document?
If you want the other person to be able to manage the account in an emergency, you may need to set up a power of attorney — a legal document that gives one person authority to act on behalf of another. This is separate from the joint account itself. Ask the bank whether they recognize powers of attorney and what form they require.
Credit reporting and your credit score
Ask whether the bank reports the account activity to both people's credit reports or only one person's. Joint accounts sometimes appear on both credit reports, which means late payments or overdrafts affect both people's credit scores. Sometimes they appear on only one person's report.
This matters if you're building credit or if one person has a much better credit score than the other. Ask the bank in writing how they report joint accounts to the credit bureaus (Equifax, Experian, and TransUnion).
How to remove someone from the account later
Ask what the process is if one person wants to leave the account or if you both decide to close it. Can one person remove themselves without the other's permission? Does the bank require both people to sign? How long does it take? Are there fees?
Some banks require both account holders to agree to remove someone. Some allow one person to leave unilaterally. Some charge a fee to close the account or transfer the remaining money. Get this in writing so you know what to expect if circumstances change.
Frequently Asked Questions
Can a bank refuse to open a joint account?
Yes. Banks can refuse to open any account if they believe it poses a risk to them. They may ask questions about the relationship between the two people or the source of the initial deposit. If a bank refuses, you can try another bank, but you cannot force them to open the account.
What if one person has a bad credit score?
Opening a joint account does not require a credit check in most cases, so one person's credit score should not prevent you from opening the account. However, ask the bank whether they will report the account to both credit reports, since that could affect the other person's credit if there are problems.
Do I need a lawyer to set up a joint account?
No. A joint checking account is a standard banking product and you do not need a lawyer to open one. However, if you want to set up a power of attorney or change how the account is legally structured, a lawyer can help you understand your options.
Can I change my mind after I open the account?
Yes, but the process depends on the bank. You can usually remove yourself from the account or close it entirely, though some banks require both people to agree. Ask about the process before you open the account so you know what to expect.
What if the other person uses the account to commit fraud?
If someone uses a joint account without your knowledge for illegal purposes, contact the bank and the police when ready. The bank may freeze the account while they investigate. You may be liable for some or all of the fraudulent activity, depending on your state's laws and the bank's policies.