Broad Authority for Account Options
This statute establishes the foundation for the variety of account types Arizona banks, credit unions, and other financial institutions can offer. It confirms that multiple-party accounts, including joint accounts, are available to customers on the same terms as single-party accounts.
A financial institution may enter into a contract of deposit for a multiple party account to the same extent it may enter into a contract of deposit for a single party account and may provide for a pay on death designation and an agency designation in either a single party account or a multiple party account.
A.R.S. § 14-6221(A)This means your bank can offer you a joint account with survivorship, a pay-on-death designation, or an agency designation on any deposit account. These options give account holders flexibility to structure how their funds pass at death without the need for a will or trust to govern those specific assets.
No Obligation to Investigate Deposits or Withdrawals
Arizona also protects financial institutions from having to police how accounts are used. A bank does not need to ask where a deposit came from or how a withdrawal will be spent.
A financial institution need not inquire as to the source of a deposit to an account or as to the proposed application of a payment from an account.
A.R.S. § 14-6221(B)While this provision primarily protects the institution, it has practical implications for account holders. It means the bank will not question a joint party's authority to make deposits or withdrawals during the life of the account. That simplicity is helpful in many family situations, but it also means there are limited safeguards if a joint account holder misuses the funds.