I don’t care about the issue of the interest on the savings. I care about knowing if by being named a co-owner, that the principle, or part of it, may be taxed as a gift.
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Thinking of investing your savings?
While increasing your savings is good, multiplying your money through smart investments feels great - there are lots of opportunities out there and you can be successful if you're arming yourself with the right information.
Where to start?
If you're going to try your luck on the stock market or trading options, first start by learning the basics and delay as much as possible buying real positions. One way of getting hands-on experience with the markets is through online trading - either forex or binary options are good learning grounds and most online brokers offer trial accounts free of charge (if you're wondering what are binary options, 24option.com has very good resources on it, besides offering a free practice account and a wealth of information about binary trading in general). Final warning for the very eager: binary options are exotic financial instruments; real trading involves substantial risk of monetary loss.
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If you, the co-owner, are not the spouse of the owner, then when you withdraw money from the account for your own personal use, it may be considered a gift from the owner.
As a gift from the owner, any gift taxes would be paid by the owner of the account, not the co-owner. The withdrawal for your personal use would have to total over $12,000 in one year to have any potential tax implications for the owner.
For the person who receives a gift they do not have to pay any taxes on it, EVER. The person giving the gift can give up to $12,000 per person per year without any tax consequences. If they exceed the $12,000 limit they would have to file a gift tax return, but have a $1,000,000 lifetime exclusion to draw against for the excess. And as far as whether it’s a gift or not, that would depend on what the other person intended putting you on their account for. Legally you have as much right to the money in the account as they do, but only you and they know why they added you to the account.