A bank account, which is shared by two or more individuals is known as a joint account. Spouses, business partners, friends or members of families who have a degree of familiarity with each other generally open joint accounts.

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A joint account allows access to funds inside anyone named on the account.

According to Paisabazaar, either of the account holders can withdraw the money deposited in a joint account. Debit cards with the name of each account holder can also be separately issued.

Some banks allow up to four joint holders in case of such accounts. All banks that offer savings accounts also offer joint accounts in India.

How a joint account functions?

Joint accounts operate just like normal accounts. They can be permanent or temporary (i.e. for a short period).

Jointly owned accounts include bank deposit accounts, such as credit cards, checking and savings accounts, and other financial products, such as mortgages, loans, and credit lines (LOC), according to ClearTax.

Here are different types of joint account relationships:

Either or Survivor

According to Bankbazaar, this is the most common type of joint account and is applicable between any two individuals. If two people have a joint account with the ‘either or survivor’ clause, either of them can operate the account. In the case of the death of one of the depositors, the other can continue, and receive the final balance in the account along with all interests.

Anyone or Survivor

This type of account is valid when more than two individuals start an account jointly. Here, any of the depositors can operate the account at any time.

If any of the depositors die, others can continue with the account.

Former or Survivor

In this, only the first account holder can operate the account. The second account holder gets the right only on the demise of the first account holder. For the same, he/she has to undergo some basic formalities like submission of proof of death etc.

Latter or Survivor

In this type, only the second account holder (latter) can operate the account. The survivor or the former account holder gets access to the fund only on the death of the latter and on producing proof for the same, according to Bankbazaar.

Minor’s Account

A savings bank account can also be opened in the name of a minor jointly with a guardian. Here, the guardian is supposed to operate the account on behalf of the minor.

First Published:Dec 7, 2020 5:09 PM IST