How to Fill Out the Ally AAOA Form: Joint Accounts and FDIC Coverage

To add a second owner to an account you already hold at Ally Bank, submit the Additional Account Owner Application through the Ally mobile app under Menu > Forms > General > Add an Additional Owner.1Ally. Opening a Joint Bank Account: Pros, Cons and What to Know The new owner fills in their personal details, both of you sign, and Ally processes the change without requiring you to close the existing account or open a new one.

Where to Find the Form

The Additional Account Owner Application lives inside the Ally mobile app rather than on the public website. Open the app, tap Menu, then Forms, then General, then Add an Additional Owner.1Ally. Opening a Joint Bank Account: Pros, Cons and What to Know You complete it digitally and submit it from the same screen.

Information the New Owner Must Provide

The person being added gives Ally the same identifying information any new applicant provides. Have the following ready before you start:

These fields come from federal law. The USA PATRIOT Act requires banks to verify the name, street address, date of birth, and identification number of every person who opens or is added to an account.4Financial Crimes Enforcement Network. USA PATRIOT Act The new owner must be a U.S. citizen or legal permanent resident at least 18 years old; Ally does not accept non-resident aliens.5Ally Bank. Ally Bank Help Center – Opening an Account FAQs

If the new owner recently changed their name through marriage or another event and hasn’t updated it with the Social Security Administration, Ally may ask for extra documentation when the system flags a mismatch.6Ally. What Do I Need to Open a Bank Account Keep a driver’s license, Social Security card, and proof of citizenship or residency nearby in case Ally requests an upload.

The new owner also certifies their taxpayer identification number and confirms whether they are subject to backup withholding. The IRS requires this certification on any account that may earn interest or dividends.7Internal Revenue Service. Backup Withholding Providing false information on a bank application can carry fines up to $1,000,000 or up to 30 years in prison under the federal bank fraud statute.8Office of the Law Revision Counsel. 18 U.S. Code 1344 – Bank Fraud

Signing the Form

Both parties — the existing owner and the person being added — must sign the application. Electronic signatures carry the same legal weight as handwritten ones under the Electronic Signatures in Global and National Commerce Act.9Office of the Law Revision Counsel. 15 U.S.C. Chapter 96 – Electronic Signatures in Global and National Commerce

Which Accounts Can Be Made Joint

Ally allows joint ownership on all of its deposit products: Interest Checking, Online Savings, Money Market, and Certificates of Deposit.1Ally. Opening a Joint Bank Account: Pros, Cons and What to Know One exception matters here: an account owned by a trust cannot be made joint. Trust accounts are limited to a single owner, though the trust itself may name multiple trustees.10Ally Bank. Accounts for Trust FAQs If your account is held in trust, the Additional Account Owner Application is not the right form.

What Changes Once the Second Owner Is Added

Adding a joint owner is not a minor administrative step. Ally structures joint accounts as joint tenants with right of survivorship, and the Deposit Agreement gives both owners equal control. Either person can deposit, transfer, or withdraw funds, and either person can close the account on their own. Both owners are equally responsible for any negative balance or fees.11Ally Bank. Ally Bank Deposit Agreement Ally has no obligation to require both signatures before honoring a withdrawal.

The agreement also contains a setoff clause. If either owner owes Ally money on a separate account, Ally can take funds from the joint account to cover that debt, no matter who deposited the money. The clause runs both directions: Ally can also pull from an individual account to satisfy a debt on a joint account that person co-owns.11Ally Bank. Ally Bank Deposit Agreement

Outside creditors are a separate concern. A judgment against one owner may expose the joint account to garnishment. State laws differ on whether the creditor can reach the full balance or only the debtor’s share, and some states let the non-debtor owner protect funds they can trace to their own contributions. Funds from exempt sources such as Social Security remain protected even after deposit into a joint account.

If the two owners later send Ally conflicting instructions, the bank can restrict or close the account and either issue a check or ask a court to hold the funds.11Ally Bank. Ally Bank Deposit Agreement A disputed joint account can sit locked until the owners agree or a judge decides.

One point in favor of adding an owner: the primary owner remains the person Ally reports to the IRS for interest income on 1099 statements.11Ally Bank. Ally Bank Deposit Agreement Adding a second owner does not shift tax reporting away from you.

FDIC Coverage After You Add an Owner

FDIC insurance improves when a second owner comes onto the account. Each co-owner is insured up to $250,000 for their combined interests in all joint accounts at the same bank, so a two-person joint account can carry up to $500,000 in coverage.12FDIC. Joint Accounts That coverage is separate from any individual accounts either of you holds at Ally.

If You Want Access Without Ownership

Adding a joint owner is the wrong tool if you only want someone to help you manage the account rather than own it. For that, Ally uses a separate Power of Attorney form submitted along with the actual POA document. The agent provides their own identifying information, and Ally can reject the POA if it does not specifically grant authority over deposit accounts. Ally accepts wet ink or digital signatures on the POA form but does not accept typed signatures.13Ally Bank. Power of Attorney (Attorney-in-Fact) Information