How to transfer money from joint account to individual account

How do you transfer money from a joint account to an individual account?

You can transfer money using online banking, mobile banking, withdrawing and depositing, or using third party apps like PayPal. ACH bank transfers (e.g. one bank to another) will require a routing and account number. You must be a joint account owner, power of attorney, or beneficiary to transfer money.

Imagine, being able to easily transfer money from your joint account to an individual. You can do it from your phone while watching your favorite TV shows.

Transferring money from a joint account to an individual account is easy, but you have rules to follow.

Luckily for you, I’ll show you the rules to transfer money from a joint account to an individual account. I’ll show you how to transfer money from a joint account to an individual and under what circumstances. You’ll be on your way to making a money transfer in no time!

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How to transfer money from joint account to individual account

A joint account owner may transfer money from a joint account to an individual account. You can transfer money using online banking, mobile banking, withdrawal and depositing, or third party apps like PayPal. 

The easiest way to transfer money is to log into your online banking or download your bank’s mobile app. As a joint account owner, you should be able to transfer the money from your joint account to all other linked accounts.

However, if you’re transferring from one bank to another (e.g. Chase to Bank of America), then you’ll need to do an ACH bank transfer. An ACH bank transfer can be done online, but you’ll need the receiving bank account’s number and routing number.

You can always swing by your local branch and withdraw money from your joint account. This withdrawal can then be deposited to your individual account. Obviously, this isn’t the most efficient use of your time, but you may have a branch conveniently located.

Another option is to use third party apps like PayPal or Venmo to facilitate a bank transfer. For example, in PayPal, you can link your joint account and individual account. You can then transfer money to PayPal and then your individual account.

Can one person withdraw money from a joint account?

Money can be transferred from a joint account by any of the joint owners to an individual account. You cannot transfer money if you are not a joint account owner, Power of Attorney, or beneficiary of a pay on death after the joint owners death.

There are many rules for a joint account withdrawal or bank transfer. The most common are joint account owners, Power of Attorney, or the beneficiary of a joint account.

Joint account owner

As a joint account owner, you are entitled to 100% of the funds in the account. Joint account ownership is common amongst couples or business partners. You have equal rights to all of the money, so technically, one person can drain the account.

In some cases, joint accounts can be set up as ‘tenants in common.’ A tenants in common bank account is split by equal percentages. 

Therefore, two owners of a joint account have 50/50 ownership of the bank account funds. Four owners to the joint account would have 25/25/25/25 percent ownership of all the funds.

Power of Attorney

As a power of attorney, you may be able to withdraw money from a joint account on behalf of someone else. However, not all power of attorney’s are created equal. Power of attorney is typically divided into General, Durable, and special or limited.

Generally, general power of attorneys have full control over someone’s finances. A general power of attorney should be able to withdraw money from a joint account. 

A durable power of attorney may have the rights to withdraw money if the person is incapacitated.

A special or limited power of attorney can only withdraw money if it’s within the scope outlined of their power. For example, a special power of attorney might only be able to sell a house once for an individual.

As you can see, it is technically possible for someone you’ve established as a power of attorney to transfer money. Therefore, it’s important to choose the right level of attorney that meets your needs.

Beneficiary

You may be the beneficiary of a joint account, which is payable on death of the account owner. In this case, you may need to bring the death certificate into the bank to transfer the money to your individual account. As a beneficiary, you cannot transfer any money while the joint account owner is still alive.

You should also be aware that the other joint account owner will have survivor rights. For example, one of your parents died, but the other one is still alive. In this case, the surviving parent would have rights to the money in the account.

Summary: Transfer money from joint account

As you can see, it is possible to transfer money from a joint account to your individual account. The easiest ways to transfer money include online or mobile banking, withdrawing and depositing, or third party apps like PayPal.

Joint account owners have 100% ownership of all the money in the account. This might change if you have a ‘tenants in common’ bank account where all money is split in equal percentages. Chances are that you have a joint account, not a tenants in common.

Joint account owners can transfer money whenever they like. They don’t even have to consult the other account owner, because the money is seen as a joint ownership. So technically, one person can drain the entire bank account.

A general power of attorney will have the rights to manage a person’s finances. Durable power of attorney’s will be able to do so if the person is incapacitated. A special or limited power of attorney may only work within the scope allowed to them as outlined in their power of attorney documents.

You may also be a beneficiary of a joint bank account (e.g. your parents). Once the joint bank owner dies, you may be entitled to the money in the account. However, you need to be aware the other owner of the account has survivor rights.