Most banks let you name a beneficiary through their website or app in under five minutes

A beneficiary is a person you name to receive the money in your account if you die. When you add one online, the bank records that instruction in your account file. If you pass away, the beneficiary can claim the funds without waiting for probate — the legal process that normally distributes a dead person's assets. The money goes directly to them, which is faster and costs less than going through a will.

The process differs slightly by bank, but the basic steps are the same: log into your online banking portal or mobile app, find the beneficiary or transfer-on-death section, enter the person's name and Social Security number, confirm their relationship to you, and submit. Most banks process this instantly or within one business day. You do not need to tell the beneficiary you named them, though many people do.

Not all account types allow beneficiaries. Checking and savings accounts almost always do. Money market accounts usually do. Certificates of deposit (CDs) often do. Joint accounts can have them, though the rules vary by state and bank. Retirement accounts like IRAs and 401(k)s have their own beneficiary systems separate from your bank account.

Key Takeaways

  • You can add a beneficiary to most checking and savings accounts through your bank's website or app by logging in and finding the beneficiary or transfer-on-death section.
  • The beneficiary receives the account balance outside of probate if you die, meaning the money reaches them faster than it would through a will.
  • You will need the beneficiary's full legal name, date of birth, and Social Security number to complete the process.
  • Some banks allow multiple beneficiaries and let you decide what percentage each one receives, while others limit you to one.
  • Naming a beneficiary does not affect your account during your lifetime — you keep full control and can change or remove the beneficiary anytime.

How to find the beneficiary section in your bank's app or website

Log into your bank's online portal or open the mobile app and look for a menu labeled "Account Settings," "Profile," "Beneficiaries," or "Transfer on Death." The exact name varies by bank. Some banks put it under "Account Management" or "Legal Documents." If you cannot find it, search the app or website for the word "beneficiary" — most banking platforms have a search function.

If the option does not appear in your app, try the desktop website instead. Some banks have not yet added beneficiary management to their mobile apps and only offer it online. If you still cannot locate it, call the bank's customer service number on the back of your debit card or on your monthly statement. They can either walk you through the process or mail you a paper form to sign and return.

What information you need before you start

Have the following details ready for each person you want to name: their full legal name (as it appears on their birth certificate or ID), their date of birth, and their Social Security number. You will also need to specify their relationship to you — most banks ask whether the person is a spouse, child, parent, sibling, or other. Some banks ask for a phone number or email address as well.

If you are naming a minor as a beneficiary, the bank may require you to name a guardian who will manage the money until the child reaches the age of majority (usually 18 or 21, depending on your state). Check your bank's specific rules before you begin, since this requirement varies.

Entering beneficiary information and confirming the details

Once you have located the beneficiary section, click "Add Beneficiary" or a similar button. Enter the person's full name exactly as it appears on their legal documents. Type their date of birth in the format your bank requests (usually MM/DD/YYYY). Enter their Social Security number carefully — a single digit wrong will cause the bank to reject the entry or create a mismatch that could delay payment to the beneficiary later.

Select the relationship type from the dropdown menu. If your bank allows multiple beneficiaries, you will see an option to specify what percentage of the account each person receives. For example, you might give 50% to one child and 50% to another, or 100% to a single person. The percentages must add up to 100%. Review all the information on the confirmation screen before you submit — once you click "Confirm" or "Submit," the change is usually final and takes effect immediately.

What happens after you submit the beneficiary form

Most banks process beneficiary changes instantly. Your account will show the new beneficiary information right away in the settings section. Some banks send a confirmation email or letter to your address on file. Keep that confirmation for your records.

The beneficiary does not receive any notification from the bank unless you tell them. The bank will not contact them or ask them to confirm. If you want the beneficiary to know, you can tell them yourself or leave a note in your will or a separate document. Some people write a letter explaining where the account is, how much money is in it, and how to contact the bank after they die.

Changing or removing a beneficiary later

You can change the beneficiary anytime while you are alive. Log back into the beneficiary section, select the current beneficiary, and click "Edit" or "Remove." You can then enter a new person's information or delete the beneficiary entirely. The change takes effect immediately, and the old beneficiary has no claim to the account.

If you are going through a divorce, check your beneficiary designations. In some states, naming your spouse as a beneficiary is automatically cancelled when the divorce is final, but this is not true everywhere. Do not assume — log in and verify that the designation reflects what you actually want.

Beneficiaries and joint accounts

If your account is a joint account (meaning you and another person both own it), the rules for beneficiaries depend on how the account is titled and what state you live in. In some states, a joint account with a right of survivorship means the surviving owner automatically gets the money when the other owner dies, and a separate beneficiary designation may not be allowed or may override that rule.

Before you name a beneficiary on a joint account, contact your bank and ask how beneficiary designations interact with joint ownership in your state. The bank can tell you whether naming a beneficiary will change what happens to the account after you die, or whether the joint ownership rules take priority.

Frequently Asked Questions

Can I name more than one beneficiary?

Most banks allow multiple beneficiaries. You can usually specify what percentage each person receives — for example, 50% to one child and 50% to another. Some banks limit you to one beneficiary per account. Check your bank's rules or ask customer service how many beneficiaries you can name.

Does naming a beneficiary affect my account while I'm alive?

No. You keep full control of the account and can spend, deposit, or withdraw money as usual. The beneficiary has no access to the account during your lifetime. The designation only takes effect after you die.

What if I want to remove the beneficiary?

Log back into the beneficiary section, select the beneficiary's name, and click "Remove" or "Delete." The change is immediate. You can also name a new beneficiary to replace the old one in the same step.

Do I need to tell the beneficiary I named them?

No, but many people do. The bank will not notify the beneficiary. If you want them to know, you can tell them directly or leave a note with your important documents so they find out after you die.

What if the beneficiary dies before I do?

The beneficiary designation becomes void. The money in the account will be distributed according to your will or your state's intestacy laws (the rules that apply when someone dies without a will). Contact your bank to remove the deceased beneficiary and name a new one if you want to.