If you’re considering becoming a secondary signer on a joint account, you’ll have to follow particular guidelines. Usually, banks have basic standards for authorized secondary signers. Because some banks could’ve extra rules specific to that institution, be sure to read the terms of the account contract very carefully.
Shared Checking Accounts
Many people face the choice to share a bank account, particularly when they get wed, step in together or start a joint business venture. While you’re the only one who can choose how you can establish your account, make sure you’re fully informed prior to you move ahead. 2 or more owners can open a joint checking account, or the owner of an individual checking account can license several secondary signers. Technically, an account owned by an individual with a licensed secondary signer is categorized as a specific account by the bank.
Responsibilities of Secondary Signers
With a joint checking account with two owners, both individuals share account opportunities and legal duty for the account. If an account owner includes you as a secondary signer, you’ve the same authority as the owner to make withdrawals and deposits, including signing checks, promoting deposits, starting wire transfers, and putting stop payment requests. Nevertheless, the owner, not the secondary signer, is lawfully accountable for the account. You, as the secondary signer, won’t be called to account or need to reimburse the bank for any overdrafts or other bank fees.
Adding a Secondary Signer
If you’re included as a secondary signer, a lot of banks will require that you and the owner check out the local branch with proper recognition and complete a trademark card. Some banks may allow you to make this account modification over the phone, but still will make you and the account owner provide shared verbal consent. Typically, banks don’t allow owners to add an authorized signer online because the bank needs evidence of written or verbal consent.
Removing a Secondary Signer
Unlike a joint bank account with co-owners, the owner of an account with a secondary signer can remove the signer from the account at any time. Obviously, this puts you, the secondary signer, at excellent danger if you’re depositing your money into the account. You can not access the account or your money once you’re no longer a licensed signer. Make sure you trust the owner explicitly before you agree to this kind of account plan.