You can open a joint account with almost anyone, but the bank will verify both people's identities and may refuse if either person has certain banking problems

A joint account is one that two or more people own together, with equal legal rights to the money inside. Either person can deposit funds, withdraw money, or close the account without permission from the other. Banks do not restrict joint accounts to married couples, family members, or people in any particular relationship—you can open one with a friend, business partner, roommate, or anyone else willing to sign the paperwork.

What the bank does restrict is who you can open it with based on that person's banking history. If the other person has unpaid overdrafts, fraud convictions, or is listed in ChexSystems (a banking record system that tracks closed accounts and disputes), the bank may deny the joint account or require that person to resolve the problem first.

Key Takeaways

  • Joint accounts require both people to provide government-issued ID and proof of address, and the bank will check both people's banking histories.
  • Banks can refuse to open a joint account if either person has unpaid bank debts, a history of fraud, or appears in ChexSystems with unresolved disputes.
  • Both account holders have full legal access to all money in the account—either can withdraw everything without the other's permission.
  • If one account holder dies, the money in a joint account with survivorship rights passes directly to the surviving owner outside of probate.
  • You will need to decide whether the account is a joint tenancy with survivorship or a tenancy in common, which determines what happens to the money if one owner dies.

What the bank needs from both people

When you and the other person go to open a joint account, the bank will ask each of you for a government-issued photo ID (a driver's license, passport, or state ID card) and proof of your current address. Proof of address is usually a recent utility bill, lease, or mortgage statement in your name. Both pieces of information must match what you provide—the bank cannot open the account if the ID and address do not correspond.

The bank will also run a background check on both people. This check looks at ChexSystems, a database that records closed bank accounts, overdrafts that went unpaid, and fraud disputes. If either person appears in ChexSystems with an unresolved issue, the bank may deny the account or ask that person to clear up the problem before proceeding. Some banks also check your credit report, though this is less common for checking and savings accounts than for credit products.

Why a bank might refuse a joint account

Banks have the legal right to refuse service to anyone, and they use this power when they see signs of financial risk. The most common reason for refusal is that one person has an outstanding debt to another bank—an unpaid overdraft, a closed account with a negative balance, or a fraud dispute that was never resolved. If you or the other person has this kind of history, you may need to pay off the debt first.

A second reason is that one person is on the bank's internal list of people who have committed fraud or abuse at that specific bank. This is separate from ChexSystems and is not something you can check beforehand. If this happens, the bank will tell you it cannot open the account but will not always explain why.

A third reason, less common but real, is that the bank suspects the account is being opened for money laundering or other illegal purposes. If the bank asks detailed questions about why you need a joint account or where the money will come from, answer honestly. If the bank still refuses, you can try a different bank, but the refusal itself is not something you can appeal.

What happens to the money if one owner dies

When you open a joint account, you and the other person must choose between two legal structures: joint tenancy with survivorship or tenancy in common. This choice determines what happens to the money if one of you dies.

With survivorship rights, the entire account balance passes automatically to the surviving owner when one person dies. This happens outside of probate (the court process that distributes a dead person's property), which means the surviving owner can access the money quickly without waiting for a will to be processed. Most joint accounts are set up this way by default.

With tenancy in common, each person owns a specific share of the account (usually 50/50, but you can choose differently). When one person dies, their share becomes part of their estate and is distributed according to their will or state law. This is slower and more complicated, and most people choose it only if they have a specific reason—for example, if they want their share of the account to go to their child rather than to the other account holder.

The risks of joint accounts you should know

Because both owners have full legal access to the money, either person can withdraw the entire balance without permission or notice to the other. This is not theft in the legal sense—it is their money too. If you open a joint account with someone you do not fully trust, you are taking a real risk. Some people open joint accounts with an adult child or aging parent specifically to manage money on their behalf, which works well when both people understand the arrangement. But if you open one with a friend or romantic partner without a clear agreement about how the money will be used, you could lose access to your own deposits.

A second risk is that debts follow the account. If one account holder owes money to a creditor or the government, that creditor can sometimes freeze or seize money in the joint account, even the portion that belongs to the other person. This is rare but possible, and it is one reason some people keep separate accounts for their own money.

How to open a joint account in practice

Both people must be present at the bank in person, or the bank must verify both identities through video call or notarized documents. You cannot open a joint account by having one person sign papers on behalf of the other. Some online banks allow you to open a joint account remotely if both people have valid IDs and can verify their identities through the bank's app or website, but most traditional banks require at least one in-person visit.

Bring both IDs and both proofs of address to the appointment. The bank will explain the account features, the survivorship choice, and any fees. Both people must sign the account agreement. Once the account is open, either person can add the other person's name to the account later if needed, though this is less common than opening it jointly from the start.

Joint accounts versus other ways to share money

A joint account is not the only way two people can manage money together. A power of attorney lets one person authorize another to make financial decisions on their behalf without making them a co-owner. This is useful if you want to let someone help you manage your account but do not want to give them full ownership rights. A payable-on-death account (also called a POD account) lets you name a beneficiary who inherits the money when you die, without making them a co-owner while you are alive. A trust is a more formal legal structure that can hold money and property and distribute it according to your wishes after you die.

Each option has different tax, legal, and practical consequences. If you are trying to decide which one fits your situation, it is worth talking to a lawyer or financial advisor, especially if large amounts of money are involved or if you are setting up an account for an aging parent or child.

Frequently Asked Questions

Can I open a joint account if the other person lives in a different state?

Yes, but you will both need to verify your identities. Some banks require both people to visit a branch in person, while others allow remote verification through video call or notarized documents. Call the bank ahead of time to ask what they need. If the other person cannot travel to your state, ask whether the bank has branches in their state or whether they offer remote account opening.

What if the other person has bad credit?

Bad credit alone does not disqualify someone from a joint account. Banks check ChexSystems and their own fraud records, not credit scores, when deciding whether to open a checking or savings account. However, if the person has unpaid overdrafts or closed accounts with negative balances, the bank may refuse until those debts are paid.

Can I remove someone from a joint account after it is open?

No, not unilaterally. Both owners must agree to change the account structure. You can close the joint account and open a new individual account, or you can ask the other person to remove themselves, but you cannot do it alone. If the other person refuses and you no longer trust them with access to the money, your only option is to move your funds to a separate account.

Do I need to tell the IRS about a joint account?

You do not need to report the account itself, but you do need to report any interest the account earns. If the account earns more than $10 in interest in a year, the bank will send a 1099-INT form to the IRS and to both owners. Each owner reports their share of the interest on their tax return. The bank may split the interest 50/50 automatically, or you may need to tell them how to divide it.

What happens if one owner wants to close the account?

Either owner can close a joint account without the other's permission. When one person closes it, the account is closed for both people, and the remaining balance is typically split 50/50 unless you have a written agreement that says otherwise. If you are worried about this, keep your own separate account with money you want to protect.