What a POD account is and why you might want one

A POD account (Payable on Death) is a bank account with a named beneficiary who automatically receives the money if you die. The beneficiary has no access to the account while you're alive—you control it completely. When you pass away, the money bypasses your will and probate court and goes directly to that person, which can be faster and simpler than other inheritance methods.

You can set up a POD account at most banks and credit unions through their online banking platform, usually in the same place where you'd change account settings or add authorized users. The process takes about 10 to 15 minutes and costs nothing.

POD accounts are sometimes called "transfer on death" or "TOD" accounts, depending on the bank. Some banks let you name multiple beneficiaries and assign percentages to each one.

Key Takeaways

  • You can add or change a POD beneficiary online through your bank's account settings, usually under a tab labeled "Beneficiaries," "Transfer on Death," or "Account Ownership."
  • You will need the beneficiary's full legal name and Social Security number or tax ID, and some banks also ask for their date of birth and contact information.
  • The POD designation takes effect immediately once you confirm it, but the beneficiary receives the money only after you die and the bank is notified of your death.
  • You can change or remove a POD beneficiary at any time while you're alive, and the change takes effect right away.
  • POD accounts are separate from your will—if your will names a different person to inherit the account, the POD beneficiary wins and the will is ignored for that account.

Steps to add a POD beneficiary through online banking

Log into your bank's website or mobile app and look for account settings or account details. Most banks group this under "Account Management," "My Accounts," or a gear icon. Once you're there, search for a link or tab that says "Beneficiaries," "Transfer on Death," "POD," or "Payable on Death."

Click that link and select "Add Beneficiary" or "Add POD." You'll be asked to enter the beneficiary's full legal name (the name on their birth certificate or government ID), their Social Security number or tax ID, and often their date of birth. Some banks also ask for their mailing address and phone number. Have this information ready before you start.

Enter the information exactly as it appears on the beneficiary's identification. If the name or Social Security number is wrong, the bank may reject the request or the money may not reach the right person after you die. Double-check before you submit.

Review the information on the confirmation screen, then click "Confirm" or "Submit." Most banks show you a confirmation number and send a confirmation email. Keep that email or screenshot for your records.

What information you need before you start

Gather the beneficiary's full legal name, Social Security number, and date of birth. If you don't have the Social Security number, call your bank to ask whether you can use a tax ID or other identifier instead—some banks accept alternatives, but not all.

Have your own login credentials ready, including any two-factor authentication method your bank uses (a phone number for text codes, an authenticator app, or a security key). If you haven't set up two-factor authentication yet, do that before you try to add a beneficiary, because most banks require it for this type of change.

Know which account you want to add the POD to. If you have multiple accounts at the same bank, you can add different beneficiaries to different accounts, or the same beneficiary to all of them. The bank will ask you to confirm which account you're modifying.

How long it takes and when the change takes effect

The POD designation usually takes effect immediately after you confirm it online. You'll see it listed in your account details right away, and the bank will send you a confirmation email within a few minutes.

However, some banks process POD changes overnight or within one business day, so check your confirmation email to see whether the bank says the change is active now or will be active by a certain date. If you don't see a confirmation email within an hour, log back into your account and check whether the beneficiary appears in your account settings.

The beneficiary does not receive the money until after you die and someone notifies the bank of your death. At that point, the bank will verify your death certificate and release the funds, usually within one to three weeks.

Changing or removing a POD beneficiary

You can change the POD beneficiary at any time by logging back into your account, finding the beneficiary section, and clicking "Edit" or "Change" next to the beneficiary's name. Enter the new beneficiary's information and confirm. The change takes effect immediately, just like adding one did.

To remove a beneficiary entirely, look for a "Delete" or "Remove" button next to their name. Confirm the removal. Once you remove a POD beneficiary, the account no longer has one, and the money will be part of your estate when you die (meaning it will go through probate or be distributed according to your will).

If you're unsure whether you've successfully changed the beneficiary, log out and log back in to your account. The new information should appear in your account settings. If it doesn't, contact your bank's customer service to confirm the change went through.

POD accounts and your will

A POD designation overrides your will. If your will says your spouse should inherit the account but you've named your adult child as the POD beneficiary, your child gets the money and your will is ignored for that account. This is intentional—POD accounts are designed to let you bypass probate—but it means you need to keep your POD designations and your will in sync if that matters to you.

If you don't name a POD beneficiary, the account is treated like any other asset in your estate and is distributed according to your will or your state's inheritance laws if you don't have a will.

Some people use POD accounts as part of a larger estate plan. For example, you might name your spouse as the POD beneficiary on a savings account and your adult children as beneficiaries on a different account. Talk to an estate planning attorney if you want to coordinate your POD accounts with other parts of your estate plan.

What happens if the beneficiary dies before you do

If your POD beneficiary dies before you, the designation does not automatically transfer to their heirs. The money stays in your account and becomes part of your estate when you die. You'll need to update your POD beneficiary or remove the designation and let the account be distributed according to your will.

Check in on your POD beneficiary designations every few years, especially after major life events like a death in the family, a divorce, or a change in your wishes about who should inherit. It takes only a few minutes to update online, and it can prevent confusion or conflict later.

Frequently Asked Questions

Can I name more than one POD beneficiary?

Many banks allow you to name multiple beneficiaries and assign a percentage to each one. For example, you could name your two adult children and say each gets 50 percent. Check your bank's beneficiary form to see whether this option is available. If your bank doesn't support multiple beneficiaries, you can open separate accounts and name a different beneficiary on each one.

Does the POD beneficiary have to be a family member?

No. You can name anyone as your POD beneficiary—a friend, a charity, a business partner, or anyone else. The bank doesn't restrict who you can name. Just make sure you have their correct legal name and Social Security number.

What if I don't remember my beneficiary's Social Security number?

Call your bank and ask whether you can use an alternative identifier, such as a tax ID or date of birth. Some banks accept these, but policies vary. If your bank requires a Social Security number and you can't get it, you may not be able to add that person as a POD beneficiary online—you might have to do it in person at a branch.

Can my bank refuse to release the money to the POD beneficiary?

The bank can ask to see a death certificate before releasing the funds, and they will verify that the person claiming the money is actually the named beneficiary. They cannot refuse to pay the beneficiary once they've confirmed both of those things. If there's a dispute about whether you actually died or about who the real beneficiary is, the bank may hold the money while the dispute is resolved.

Is there a fee to set up a POD account or add a beneficiary?

No. Adding a POD beneficiary is free at all banks. Some banks charge monthly fees for the account itself, but those fees are not related to the POD designation.