Banking Category Banking: the easy, simple banking guide

What is an account holder?

An account holder is a term used for someone designated for performing transactions on an account. This term is generally used in banking, but also applies to utility bills, credit cards and other types of accounts.


An account holder is someone authorised to make transactions on an account. To be an account holder, the person's name must be registered and on file with the company the person does business with. The account holder is authorised to make changes to the account, make deposits and pay bills.


A primary account holder is the person who is listed first on the account. This person is the main user of the account and is responsible for the account. The primary account holder can add secondary account holders who also are authorised to perform transactions. This person is responsible for the account if the primary account holder defaults on it. Authorised users are also a type of account holder. These users are able to make transactions, but hold no responsibility for the account.


When a person does business with a company, the company may have the person sign an account holder agreement. This agreement states the obligations of both parties as well as the terms and conditions of the arrangement.