Yes, you can add a beneficiary to most bank accounts, and it takes just a few minutes
A beneficiary is a person you name to receive the money in your account if you die. When you name a beneficiary on a bank account, that money passes directly to them outside of your will — it goes to them automatically, without delay, and without going through probate (the legal process that settles your estate).
Most banks let you name a beneficiary on savings accounts, checking accounts, and money market accounts. The process is straightforward: you fill out a form at your bank, name the person or people you want to receive the money, and the bank keeps that information on file. You can change your beneficiary at any time, and you can name more than one person.
This is different from leaving money to someone in your will. A beneficiary designation on your bank account overrides your will — so if your will says one thing and your bank account says another, the bank account wins.
Key Takeaways
- You can name a beneficiary on most savings and checking accounts by filling out a form at your bank, usually in person or online.
- Money left to a beneficiary passes directly to them when you die and does not go through probate, which means it reaches them faster.
- A beneficiary designation on your bank account overrides your will, so make sure the names and amounts match what you actually want.
- You can change or remove a beneficiary at any time during your lifetime, and you can name multiple people to share the account.
- Some banks call this a "payable on death" or POD account, and the terms and forms vary slightly by bank.
What you need to name a beneficiary
To add a beneficiary, you will need to provide your bank with the person's full legal name and their Social Security number. Some banks also ask for their date of birth and current address, though not all do. If you are naming a minor child, the bank may require you to name an adult to manage the money until the child reaches the age of majority (usually 18 or 21, depending on your state).
You do not need the beneficiary's permission to name them. You also do not need to tell them you have done it, though it is a good idea to let them know so they understand what to expect and know where to find the account after you die.
If you want to name more than one beneficiary, you will specify how much each person receives — either as a percentage or as a specific dollar amount. For example, you might say 50% to your daughter and 50% to your son, or $10,000 to your sister and the rest to your spouse.
How to add a beneficiary at your bank
The exact steps depend on your bank, but the process is usually one of these three routes: in person at a branch, by phone with customer service, or online through your account.
In person: Visit your bank branch with your account number and a photo ID. Ask to speak with someone about adding a payable-on-death (POD) beneficiary. They will give you a form to fill out with the beneficiary's name and Social Security number. You sign the form, and the bank keeps it on file. This usually takes 10 to 15 minutes.
By phone: Call your bank's customer service number on the back of your debit card or on your statement. Tell them you want to add a beneficiary to your account. They will ask for your account number, the beneficiary's full name and Social Security number, and how you want the money split if there are multiple beneficiaries. They may mail you a form to sign and return, or they may process it over the phone depending on the bank's policy.
Online: Log into your account on your bank's website or app. Look for a section called "Account Settings," "Profile," "Beneficiaries," or "POD Beneficiary." Click the option to add a beneficiary and enter the person's information. Some banks let you complete this entirely online; others require you to print, sign, and mail a form back to them.
The difference between POD accounts and joint accounts
A payable-on-death (POD) account — the formal name for a bank account with a beneficiary — is different from a joint account, where two people own the account together right now.
With a POD account, you own the money while you are alive. The beneficiary has no access to it, cannot withdraw from it, and cannot see the balance unless you show them. When you die, the money goes to them automatically. With a joint account, both people can access and withdraw money at any time, and if one person dies, the surviving owner usually keeps the whole account.
A POD account is useful if you want to leave money to someone but do not want them to have access to it while you are still alive. A joint account is useful if you want someone to help you manage your money now — for example, if you want your adult child to be able to pay bills from your account if you become ill.
What happens to the money when you die
When you die, the beneficiary contacts the bank with a copy of your death certificate and proof of their identity. The bank verifies the information and transfers the money to the beneficiary's account. This usually takes one to two weeks, though it can be faster or slower depending on the bank and whether there are any complications.
The beneficiary does not have to go to court or wait for probate. The money is theirs to keep — they do not have to share it with your other heirs or your creditors, with one exception: if your estate owes taxes or has unpaid debts, the bank may be required to hold the money temporarily while those are settled. This is rare and depends on state law.
If you name multiple beneficiaries, each one receives their share at the same time. If a beneficiary dies before you do, that person's share goes back into your account (unless your bank's rules say otherwise), and you should update your beneficiary form to reflect the change.
Changing or removing a beneficiary
You can change your beneficiary at any time while you are alive. Use the same method you used to add them — go to your bank in person, call customer service, or log into your online account. Tell the bank you want to change the beneficiary, and they will give you a new form to fill out. The new beneficiary designation replaces the old one.
If you want to remove a beneficiary entirely and leave no one named, you can do that too. Just contact your bank and ask them to remove the POD designation. After you die, the money in that account will go through probate like any other asset in your estate.
Keep in mind that if you get divorced, you may want to remove your ex-spouse as a beneficiary. Some states automatically remove an ex-spouse when a divorce is final, but not all do, so do not assume it happens automatically — contact your bank to be sure.
Banks that let you name a beneficiary
Most banks and credit unions in the United States allow you to name a POD beneficiary on savings and checking accounts. This includes large national banks like Chase, Bank of America, and Wells Fargo, as well as smaller regional banks and most credit unions.
Some banks may have restrictions — for example, they might not allow you to name a beneficiary on a business account, or they might have a limit on how many beneficiaries you can name. A few banks charge a small fee to set up a POD account, though most do not. Call your bank or check their website to find out their specific rules.
If your bank does not offer POD accounts, you have other options: you can name the account in a revocable living trust, you can make the account joint with someone you trust, or you can leave the money through your will. Talk to your bank about what works best for your situation.
Frequently Asked Questions
Can I name my minor child as a beneficiary?
Yes, but the bank will require you to name an adult to manage the money until your child reaches the age of majority (usually 18 or 21). That adult is called a custodian or guardian. You can name the child's other parent, a grandparent, or another trusted adult. The custodian must use the money for the child's benefit and turn it over to them when they come of age.
What if my beneficiary dies before I do?
The money stays in your account. You should update your beneficiary form to name someone else or decide what you want to happen to the money. If you do not update it and you die without a new beneficiary named, the money will go through probate like any other account.
Does naming a beneficiary affect my taxes?
No, naming a beneficiary does not create a tax event for you while you are alive. When you die, the beneficiary may owe federal estate tax if your total estate is very large, but this depends on the size of your estate and current tax law. Talk to a tax professional or attorney if you have concerns about your specific situation.
Can I name my bank account to a charity or organization?
Yes, many banks allow you to name a charity, nonprofit, or other organization as a beneficiary. You will need the organization's legal name and tax ID number. This is a common way to leave money to causes you care about without having to change your will.
What if I want to change my beneficiary but I am in the hospital or unable to visit the bank?
Call your bank's customer service line and ask about their process for changing a beneficiary by phone or mail. Some banks will mail you a form to sign and return. If you are unable to sign, you may need to have a power of attorney in place — a legal document that lets someone else make financial decisions for you. Talk to your bank about your options.