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Swapping the Order of Ownership on a CD

If the same two owners of a CD want to swap the primary role, do we need a new signature card? Do we need written permission from both?

Answer by John Burnett: If you obtained a W-9 certifying Sam Jones' Social Security number and have been using that number for filing annual 1099-INT forms, and the other owner of the account now wants to have interest reported under her name and number, the most you would need is a W-9 from that individual (if you didn't get one earlier). There would certainly be no need to get a new signature card or other documentation to make the change. The order in which joint owners are listed on your records or a bank statement has no legal significance.


Answer by Ken Golliher: Just wanted to make sure you saw that.

If there is a "John or Ken" time deposit, we both own it, and the bank reports the interest in the name/TIN combination of the first named individual, John is supposed to send me a 1099INT for my portion of the interest. If we decide to reverse the order of the names, then I will perform the same service for him.

Changing the name order does not reallocate ownership or tax liability. It would be time well spent to ask them what it is they "think" they are doing...

First published on 7/1/13

First published on 07/01/2013

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