What is joint account?
A joint account is a specific type of savings account that allows individuals to open it collectively with one or more other individuals. Typically, joint accounts are established by groups such as families, business partners, or married couples who have a degree of familiarity and trust among themselves. In these joint accounts, all account holders typically enjoy equal access to the funds held within the account.
Most banks offer the option for two or more people to open a joint account together, allowing them to combine their financial resources in a single account for safekeeping. While a few banks may permit up to four joint holders in one joint account, every bank offering savings accounts in India also provides the option for joint accounts.
How does joint account work?
Joint accounts function in a manner similar to standard savings accounts, with the key distinction being that they allow multiple individuals to manage the account jointly. Funds deposited in a joint bank account are considered the shared property of all account holders, granting them the ability to both deposit and withdraw funds as required. Transactions within a joint account can be conducted on an 'either/or' basis, meaning that the account's signatories can be either one of the joint account holders or all of them, depending on the preferences set by all parties when opening the account.
It's essential to emphasize that opening a joint account should only be done with individuals you know and trust, as it grants them full control over the funds held in the account.
Joint accounts offer all the primary benefits of individual accounts, including the issuance of debit cards to all account holders and checkbooks featuring the names of all account holders on the checks. Additionally, joint account holders typically have access to various services, such as internet banking and the ability to apply for loans, mortgages, and lines of credit (in the case of joint business accounts), among other offerings.
The process of opening a joint account closely mirrors that of opening a standard individual account. All individuals named as joint account holders must be present during the account's opening. You have the option to open the account either online or in person at the bank