Information presented on this web page is intended for informational and educational purposes only and is not meant to be taken as legal, financial, investment or tax advice. We do not accept any responsibility for any trading or investment related losses. Please review our disclaimer on before taking action based upon anything you read or see.
Chase joint bank accounts are those shared by two persons. Couples may easily manage their finances since both persons have full access to the account and can contribute and withdraw monies as required. However, terminating a joint bank account Chase when it is no longer valid is a financially wise and generally easy decision. Understanding how to close a joint bank account Chase can help you terminate yours without hassle. Thus, we have written this article to aid you.
Furthermore, if one account holder initiates a transaction, he does not need the approval of another account owner for it to proceed. This means that the account owners should appropriately manage it.
When the account owners are couples, however, and they divorce, the account might become a cause of even more strife. It may muddle the processes since each spouse has full access to the account and can cancel it with the other spouse’s consent.
One spouse may take all the money while the other has nothing left. Here are a few money-saving suggestions for ending a banking connection with a co-account owner.
What is a Chase Joint Bank Account?
Two or more individuals share a Chase joint bank account. This implies that anybody listed on the account may sign checks, make payments, and pay in cash. Creating a joint bank account may make sense if you have more than one person covering household expenditures.
That way, you can pay your bills, rent, and mortgage all in one spot. The most important thing to remember when opening a joint bank account is that you are co-owners.
As a result, any overdrafts or costs incurred are your shared responsibility. That’s why you should be cautious about opening a joint bank account with someone you don’t know.
Why Close a Joint Bank Account Chase?
Getting rid of a shared bank account if you have an inattentive or difficult co-owner account, Chase makes sense. This is true even if you no more need it (your banking requirements changed or the union ended, for example). It may be enticing to retain an account active and not use it in certain situations. Closing your joint account as quickly as feasible, on the other hand, may safeguard you in several ways. This includes the following:
Getting rid of a shared bank account, Chase protects the co-owner from suffering overdrafts and other costs by preventing him from misusing the account. If you close the account, the co-owner may attempt to spend money that isn’t in the account.
The account balance will go negative if the bank covers the transaction on your behalf, and you may incur an overdraft fee. You’ll need to move the balance to zero to cancel the account.
Keep fees to a minimum
When you terminate a shared bank account with Chase, you also stop paying monthly maintenance costs and inactivity penalties. This way, you won’t have to pay for something you won’t use.
Limit your legal liability
Joint account holders control the money in the account, even if you’re the only one who uses it and you trust the other person. Creditors may be able to seize your funds if another account holder gets sued for outstanding bills or an automobile accident, for example.
Make a fresh start
You may wish to put the past behind you if a relationship ends. Closing an old joint bank account may be a source of emotional comfort and removing unwelcome recollections.
Deactivate all shared accounts.
Each account holder on a Chase joint account may usually shift money or end the account. Consequently, one person may spend funds in an account without the permission of others.
This is useful for busy homes and business associates who want to get things done quickly. When relationships break, on the other hand, things might get problematic.
Closing a joint account allows both proprietors to be financially independent. Determine how other account holders would respond if you go ahead without their consent before withdrawing money or closing an account.
How to Close a Joint Bank Account Chase
One of the numerous options exists for closing your Chase joint bank account. This includes the following:
On the internet
You may terminate a joint account with Chase Bank online, either via an automated procedure or by contacting customer support while signing in to your account. Both account holders may be required to log in individually to request the closure based on the bank branch.
Through the mail
Joint account instructions are available at Chase banks (with one or more original signatures required).
It may be feasible to shut your Chase joint bank account with a customer care person over the phone.
Meet in Person
The most onerous requirement is that one of the account holders must physically visit a branch and sign a document to terminate the joint bank account. Bring identification and allow lots of time to finish the procedure if this is the case. A shared bank account Chase may usually be closed by only one person, and that individual can be any co-owner.
Things to Keep In Mind Before Closing Joint Bank Account Chase
Getting rid of a shared bank account it is possible that pursuing someone will have negative repercussions. You may skip payments, bounce checks, and incur unnecessary fees if things go wrong. Follow this checklist when transferring banks to prevent expensive surprises:
Make sure your account is empty.
Make a deposit to cover any shortfalls, or specify how you want your bank to disperse any monies remaining in the account after it closes. You may wire money and send checks via banks or move the funds yourself.
Put an end to the withdrawals
Avoid costly overdrafts and account closure delays by ensuring that all pending checks have cleared. Similarly, stop any automated bill payments. Make a list of everything you did in the last 12 months, so you don’t forget anything. To avoid making a mistake while closing your joint bank account, destroy any debit cards and checks associated with it.
Prepare your new account
If you haven’t already, create a new account. In the new account, you’ll need to be able to accept payments, send money, pay bills, and save cash. It might take up to one month for your payments to effectively transfer to the new account once you reroute them. So wait till then to cancel the previous account.
Request that your bank cancels your previous account.
Learn about the conditions, such as who may seek the shutdown and how to convey your request. Then, bring your ID and other required paperwork to the Chase branch and submit your request to end the joint account.
Frequently Asked Questions
What is the procedure for removing my name from a shared bank account?
You may get a form from the bank to abandon your account privileges. Remember that eliminating your name from a shared bank account will not relieve you of liability for any overdrafts accrued while you were a joint owner. Taking off your name from the account will only serve to protect you from sharing the blame for future errors.
On a combined Chase bank account, who pays income tax?
The Chas shared bank account owners are jointly responsible for the account’s income tax liability. For married couples who file joint tax returns, this is simple. The income tax burden should be divided according to their share of ownership in the account for business partners or others who share bank accounts without submitting joint returns.
Is it possible to close a Joint Chase bank account without paying a fee?
No. There is no charge to terminate your account, but make sure it isn’t negative, and the balance is zero.
What is the time frame for closing a Chase joint bank account?
If the account balance is in good standing, closing a Chase joint bank account might take 1-2 business days.
Is it possible to remove someone from a shared Chase bank account?
Yes. If you go to Chase and tell them you want to delete someone from your account, they will give you a form to fill out. The form would state that the account uses the primary account holder’s social security number for tax reporting purposes.
The principal account holder of the Chase account cannot be put out. The joint chase account is the only person you can remove (the secondary account holder).
However, if the principal account holder is the one who has to quit, there is no need to utilize the Chase bank’s form. The surviving account holder would have to apply for a new brokerage account instead. The form also specifies that both account holders must sign the document.
Also, suppose the current chase account has a margin, option privileges, or collateral. In that case, the request to remove someone will be delayed until a new margin, collateral, or option privilege gets authorization.
In conclusion, with a Chase joint bank account, each person on the account has the right to access the funds in it. On the other hand, if you desire more help regarding how to close a joint bank account at Chase, the tips above will aid you immensely.
I am Lavinia by name, and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.