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Household money and budgeting

Joint account

A bank or credit union account owned by two or more people, each of whom can usually deposit, withdraw, move money or close it.

What It Means

A joint account is a checkingChecking accountA bank or credit union account for everyday money going in and out, used by debit card, checks, transfers and direct deposit. See more or savings accountSavings accountA bank or credit union account for money you're setting aside for later, which earns interest and is insured up to federal limits at insured institutions. See more held in the names of two or more people. In most cases, according to the CFPB, every owner can deposit, write checks, withdraw money, move funds or close the account without the others. Most joint accounts also carry rights of survivorship, so when one owner dies the money passes to the surviving owner or owners.

Try It: Check FDIC Coverage on Joint Accounts

Example amounts. Enter what's in all your joint accounts together at one FDIC-insured bank.

Each owner's share$250,000
Insured in all$500,000
Not insured$0

All of it is within the FDIC limit of $250,000 per co-owner for joint accounts at one bank.

Assumes equal shares, as the FDIC does unless the bank's records clearly show otherwise. Each owner's single accounts are insured separately.

How It Sounds at Home

  • "We put both our names on the checking account."
  • "Rent and groceries come out of the joint."
  • "Can you add me to your account?"

The Breakdown

Worked example: FDIC coverage. Ana and Luis, a married couple, keep three joint accounts at one FDIC-insured bank: $80,000 in checking, $150,000 in savings and $270,000 in a CDCertificate of depositA deposit you agree to leave at a bank or credit union for a set term, until its maturity date, usually with a penalty for taking money out early. See more, $500,000 in all.

Amount
Total in joint accounts at this bank$500,000
Each owner's share, assumed equal$250,000
Insured per owner$250,000
Insured for the couple$500,000
Uninsured$0

The FDIC adds up each co-owner's share of every joint account at the same bank and insures it up to $250,000 per owner, so the couple's joint money is fully covered. Another $50,000 in the joint savings would leave $50,000 uninsured at that bank, though each person's single accounts are a separate ownership category and are insured on their own.

Using one for shared bills. Some couples keep a joint account only for shared costsShared expensesCosts two or more people agree to split, such as rent, utilities, groceries or a shared subscription, as opposed to costs each person covers alone. See more and each move in their share, split evenly or by income, as guides from Fidelity, U.S. Bank and Wells Fargo describe. Everything else stays in each person's own account.

Good to Know

Standard FDIC coverage is $250,000 per depositor, per insured bank, for each ownership category, and joint accounts are their own category, so they're insured separately from each owner's single accounts. The FDIC assumes co-owners own equal shares unless the bank's records clearly say otherwise. On access, the CFPB advises being careful whose name you add, because in most cases either owner can empty or close the account. If you want someone to help pay your bills without owning your money, the CFPB describes a convenience account, and you can tell the bank you don't want a joint account with rights of survivorship.

FAQ

Can one person take all the money out of a joint account?

In most circumstances, yes. The CFPB says either owner of a joint checking account can generally withdraw money and even close the account, so open one only with someone you trust.

What happens to a joint account when one owner dies?

Most joint accounts have rights of survivorship, so the money passes to the surviving owner, or equally to the remaining owners if there are several, according to the CFPB. Your account agreement says how yours is set up.

How much of a joint account does the FDIC insure?

Each co-owner is insured up to $250,000 for their combined shares of all joint accounts at the same insured bank. That means a couple can have up to $500,000 of joint deposits covered at one bank, per the FDIC.

Do It in Buhata

Household budget

Set the shared categories in Household budget in your Household Space, so both of you know what the joint account is meant to cover each month.

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Related Terms and Categories

  • Proportional bill split

    Splitting shared bills in proportion to each person's income, so someone earning 60% of the combined pay covers 60% of the shared costs.

  • Shared expenses

    Costs two or more people agree to split, such as rent, utilities, groceries or a shared subscription, as opposed to costs each person covers alone.

  • Checking account

    A bank or credit union account for everyday money going in and out, used by debit card, checks, transfers and direct deposit.

Household money and budgeting

Sources

Consumer Financial Protection Bureau, "A joint checking account owner took all the money out and then closed the account without my agreement. Can they do that?"; Consumer Financial Protection Bureau, "What happens if I have a joint bank account with someone who died?"; Consumer Financial Protection Bureau, "Can a family member or friend help me with bill paying and banking?"; FDIC, "Joint Accounts"; FDIC, "Your Insured Deposits"; FDIC, "Understanding Deposit Insurance"; Fidelity, "Money in relationships"; U.S. Bank, "Reasons why couples have separate bank accounts"; Wells Fargo, "How To Manage Finances As A Couple"

Last updated .