Joint bank accounts can help you manage money with someone you trust

A joint account is a type of bank account shared by two or more people. It can be a convenient tool if you need to manage money with another person, such as a family member or partner. At the same time, having a joint bank account comes with its own risks.

Below, CNBC Select breaks down how such accounts work, how to open one and what you should consider before doing so.

A joint bank account works like a regular bank account that's shared by multiple account holders. It can be a checking account for everyday spending or a savings account for common saving goals.

Most individual bank accounts can also become joint accounts if you apply with another person or add them to the account later. For instance, we ranked SoFi Checking and Savings* as the best joint account, but you can just as easily use it as an individual account.

While it's oftentimes family members or business partners who choose to share accounts, you can open a joint account with anyone eligible. Each account holder can deposit and withdraw money at will and is equally responsible for any fees associated with the account. Each is also federally insured for up to $250,000 at a bank or credit union.

You can open a joint bank account online or in person. If you open an account virtually, you'll need to provide each applicant's personal information, which typically includes their name, address, email address and phone number, Social Security number and date of birth. Or, if you decide to apply at a bank or credit union branch, each account co-owner will need to be physically present to open the account.

You can also turn an existing individual account into a joint account by adding a person as an account holder. Simply call your bank's customer service to ask if they allow this option (most do) and provide all the necessary personal information for the new account holder.

Joint bank accounts help multiple people manage a common pool of money to meet a shared financial goal. For example, if you're splitting expenses with a spouse or partner, sharing a checking account can make managing bills and other spending easier. Keeping your savings together can also empower you to contribute toward mutual goals.

Some joint accounts can be shared by minors, which can help your kids safely learn money management. For example, we picked the Capital One Kids Savings Account as the best joint account for families with children. Kids can sign in, make their own deposits and check their balance, while parents can transfer money both in and out of the account and manage other account details.

At the same time, a joint account isn't always an ideal solution. In relationships where communicating about finances is a challenge, unexpected or large withdrawals or failure to add to savings can lead to conflict. Even worse, if your share a joint bank account and one of the co-owners has unpaid debt, lenders can go after the money in the shared account to satisfy it. Finally, if the relationship ends, one of the account holders can attempt to withdraw all the money, no matter how much (or how little) they have contributed.

Another consideration is taxes. For instance, if you have a joint savings account with your spouse and you file a joint return, the process is simple — just include the interest you have earned in your tax filing. On the other hand, if you aren't married or you're filing separately, things can get more complex and you might need the help of a tax professional.

Further, if you aren't married, gift taxes might also be an issue. If you deposit a large sum to a joint bank account and your account co-owner withdraws it, you might have to pay gift taxes. In 2023, you can "gift" $17,000 or less without triggering gift taxes. However, if your joint account holder withdraws more than that, you might be on the tax hook.

Combining finances in any shape and form is a serious step that can come with far-reaching consequences. Make sure you understand the possible risks and benefits before opening a joint account.

Joint accounts work similarly to individual bank accounts and it can be just as easy to open one. While it can be convenient to share a checking or savings account, it also requires a lot of trust and solid communication about money. Ensure you weigh the risks as well as advantages before applying for a joint account.

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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 12/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet