Online Account Opening Internal Transfers

Posted By: Bankwoman1

Online Account Opening Internal Transfers - 06/07/21 03:52 PM

We are still working on getting our online account opening site up and running. One of the things we are running into is an issue with our internal transfer option for funding the new account. Our roles in our system are: tax-owner, tax sigator and non-tax owner, non-tax signator when opening a joint account. Our vendor is telling us that only the tax owner on a joint account would be able to open an account online and fund the new account from the joint account. The non-tax owner could not. This seems really strange to me that this can not be an option. Just wondering if anyone else has run into this issue with online account opening?

If I tried to open an account online with my current financial institution and I wanted to fund it with a joint account I have with my husband and it wouldn't allow it, I think I would be pretty peeved.

Has anyone else come across this and if so, how did you handle it??
Posted By: John Burnett

Re: Online Account Opening Internal Transfers - 06/07/21 07:37 PM

That may be the vendor's requirement because it wants to port all the tax reporting info (the tax owner's SSN, primarily) over to the new account, along with the W-9 info. Otherwise, there should be no reason that the non-tax owner should not be able to open a new account for which they are the tax-owner.

In other words, it may just be a problem with the moving parts in an online opening for current joint owners, since there should not be a problem at all if it were done in person.

Could you open the account with no deposit and fund it after the fact with a manual transfer approved by the opening owner?