Can Savings Accounts Have Beneficiaries?

Banks Editorial Team · November 22, 2018

Are you wondering if savings accounts have beneficiaries? Do you want to add a beneficiary to your savings account? Are you interested in finding out the number of beneficiaries that can be included in a savings account? The answer to your query is yes, it can have beneficiaries.

 

 

Do Savings Accounts Have Beneficiaries?

Its common practice that savings accounts have beneficiaries, especially when the accounts are intended for long-term investment purposes. At the initial account opening, a form for beneficiaries is completed by the account holder. This requires the details of the beneficiaries) including name, address, email, relationship, social security number, etc. A savings account can allow for one or more beneficiaries with a percentage of benefit for each stated (in the case of multiple beneficiaries). Also, beneficiaries can be changed, but this requires that the account holder must visit the bank to apply for such change and complete a beneficiary form.

Reasons Why Savings Accounts Have Beneficiaries

Savings account holders are allowed by federal banking regulations to designate a beneficiary or multiple beneficiaries to their account(s). This is authorized mostly in case of an event like death. Any person, charity, trust, an organization can be chosen as a beneficiary by an account holder. This designation of beneficiaries must be done through the financial institution’s beneficiary form. Information regarding beneficiaries to an account is usually requested for during the initial account opening. The beneficiary information required include name, address, social security number, etc. Once beneficiaries are named, a bank account is referred to a “payable on death.” account, and is classified as a revocable trust account by the Federal Deposit Insurance Corp. In case one wishes to change or include a beneficiary to a savings account, the individual is required to go to the bank in person to apply and fill a form for it. The sole owner of a savings account can arrange with the bank to name a beneficiary by completing a “Payable on Death” form.

All savings account require a beneficiary even at the initial opening of the account. To know more about including a beneficiary to your savings account, check here. Compare savings account options in your area:

Adding Multiple Beneficiaries to Your Account

For multiple name beneficiaries, the account holder will need to provide each beneficiary’s name and address and the beneficiaries do not have to be there, and there is nothing for the beneficiaries to sign. The percentage benefit for each beneficiary must be clearly stated. There is no limit to the number of beneficiaries one can include. The beneficiaries can be individuals, charity, trusts or organizations. It depends on whom the account owner chooses to include.

If you wish to have multiple beneficiaries designated to your savings account, you can check here to find out more on multiple beneficiaries. See which savings accounts are best for you and your family:

 

 

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