Introduction
Adding a person to your bank account makes the person a joint account owner. The bank account will no longer belong to you alone. Various banks have a limited number of people who are allowed to access one joint account. Some banks allow two(2), and some three(3) and more. This article will guide us through what adding someone to your bank account entails. Let us know How To Add Someone To Your Bank Account?
You can decide to add someone to your former account or open a new account. Adding someone to your bank account gives each party equal access to the bank account as they will have their debit cards linked to the account for easy withdrawals and deposits.
How Do You Add A Person To Your Bank Account?
The process by which you can add a person to your bank account varies with different banks. You will need to visit your bank. Some banks allow you to add someone to your account online. Most banks require the parties to come physically to the bank.
If there is more than one joint account holder already, each of them has to be present before a new account holder can be added. The bank will require that the party provide some documents that will be used for further processing and identification. After which they will fill out all necessary forms and sign.
Once the process is complete, they will also have access to the account like the real owners without any limitations whatsoever.
Things To Know Before Adding Someone To Your Bank Account
There are a lot of things you need to place under consideration to add someone to your bank account. As earlier stated, the other party has 100% access to your account like you and, if you are not careful, problems might arise.
The first thing you should know is, that before you add a person to your bank account, there must be ‘mutual consent’ from both parties. One party cannot make decisions on a joint account alone, the decision must be agreed upon by both parties.
Banks allow automatic ownership of a joint account by a joint account holder once the other party dies. It does not matter if the Will of the deceased says otherwise, the joint account owner automatically becomes the sole owner of the account.
When adding a person joint ownership rights are available equally to the joint account holders.
Adding someone to your bank account simply means that you can only remove such a person unanimously. The account holders of the bank account must consent to the removal of that person’s name from the account.
Is There Any Problem with Adding Someone To Your Bank Account?
They can do what they want to do without your permission.
Getting to know and trust the person you want to add to your account is very important. This is because you give the other person the same amount of right that you have to the money. There won’t be any punishment for them if they lavish the money or withdraw as much as they want. If they run into credit, they won’t be solely responsible for it, you both will be held responsible since it is a joint account.
When one of the parties dies, you cannot decide whom your money will go to as it automatically becomes the money of the joint account holder.
Who Does Joint Accounts Benefit?
The first set of people that a joint account is ideal for are married couples. With a joint account, married couples can keep spending habits in check, and keep track of all their expenses.
The second set of people for whom joint account benefits are the aged. An aged person may not be able to actively do something as their bones tend to become frail with time. They can make someone they trust, especially their child a co-owner of the account so the child will have direct access to all needs.
Documents Needed To Open A Joint Bank Account
The tax identification number or the social security number of each party is required.
A government-issued identification that includes your name, date of birth, and address is required. It could be your passport, driver’s license, or state identification.
Conclusion
Adding someone to your bank account has as many problems, as it has benefits also. Open an account with a person you confide in and trust. Any mistake made by adding the wrong person to your bank account can cause a lifetime of regret.
Frequently Asked Questions
- Can I remove someone I added to my bank account anytime I want?
Answer: No, you cannot do that. Some banks require mutual consent and signature from both parties before anyone can be removed from the account. Other banks require that you close the joint account, and then you both can individually open a separate account.
- Is there any disadvantage of a Joint account for couples?
Answer: Joint accounts are very beneficial in keeping couples’ spending in check. However, where there is no understanding between couples, it could result in disagreement as all expenses that are made by one spouse can be seen by the other.
- How do I open a joint account?
Answer: You need to go to the bank with the person you want to add to the account and inform them about the decision.
- Is a secondary signer also the same as a co-owner?
Answer: The two words are confused to mean the same thing, but they are different. A co-owner of an account has ownership of that account. The parties have equal access and right to the bank account; While a secondary signer is someone who, although has access to a bank account, has no ownership of it. There are limits to what such a person can do with the account.
