Joint Account
A financial account shared by two or more individuals, each of whom has equal rights to access and manage the account's funds.
What is Joint Account?
A joint account is a bank, brokerage, or other financial account that is owned by two or more people, each of whom has full access to the funds and can make deposits, withdrawals, and investment decisions without the other's consent. Joint accounts are common among married couples, domestic partners, and parents and children. The most common form — joint tenancy with right of survivorship (JTWROS) — automatically transfers the account balance to the surviving owner(s) upon death, bypassing the probate process. Tenancy in common (TIC) is another structure in which each owner holds a defined share that passes to their estate rather than to the surviving owner. Joint accounts provide convenience but also exposure to each co-owner's financial decisions and potential creditor claims.
Example
A married couple opens a joint checking account with right of survivorship. Both spouses can pay bills, deposit paychecks, and withdraw funds independently. When one spouse dies, the account balance automatically transfers to the surviving spouse without going through probate — a key advantage over individually held accounts that must pass through the estate.
Source: Consumer Financial Protection Bureau — Joint Accounts