How to Open a Joint Bank Account Online

Research Your Investments Carefully

Joint bank accounts imply a high level of trust between two people. While the choice of banks should be based on safety and convenience, opening an online account is a relatively simple matter. Investors or business partners must consider the different types of joint accounts and understand that the credit of one signee can affect the credit of the other.

Things You'll Need

• Personal identification with picture

Instructions

1. Understand that in a joint account each party on the account can use automated teller machines and withdraw money without the approval of the other party. Each party is responsible for the actions of the other taken in the account. Also understand that credit agencies may create a link between the two parties, affecting the credit ratings of both.

2. Choose a bank carefully. While opening the account online choose a bank with low or no-cost access to ATMs and other services you may need. Review the bank charges carefully for monthly fees, surcharges and overdraft checking. In addition, decide what kind of joint account you want. Choices include joint account with rights of survivorship. This gives the survivor account title to the account value. Tenancy in common accounts divide assets to each party as described in her will. Beware of joint accounts where all investors must co-sign for every transaction in the account.

3. Collect the following information that the bank will need in order to open a new account and comply with the Patriot act: photo identification (or a photostat that can be mailed after the account is opened online), Social Security numbers of both parties, current residence, current bank account and contact information.

4. Apply to open the account online. Follow the instructions and be prepared to mail some physical evidence to the bank. Mail or wire funds from your current account to the new account. Banking approval is usually immediate but contingent upon receipt of all documentation and credit approval.

5. Remember that since you are responsible for debt incurred by other members drawn on the joint account your contributions into the account should be measured accordingly. Consider using overdraft checking for the possibility that joint account partners may write checks and forget to inform you.

6. Use the online service to pay bills and to balance the account at the end of each month. Consider having a written agreement with joint account holders to define under what circumstances an account may be closed or joint account holders may be removed from the account.

Tips & Warnings

• Use corporate accounts rather than joint accounts if each holder has a specific corporate responsibility.

• Consider the effect on your credit rating if your joint account partner has a poor credit rating.

References

• Joint Checking Accounts

Resources

• Discussion of Joint checking Accounts