Tired of managing multiple transactions from different sources and maintaining multiple bank accounts amongst close family members or business partner, then opt for a joint bank account for hassle-free funds accessibility.
A joint account is a standard savings account shared by two or more individuals where funds can be accessed by either account holder.
A joint account can be opened permanently or for a short period depending on the requirement. At the time of opening, the banks most commonly offer accounts with either or survivor with primary account holder and secondary account holders.
In this case, the funds can be accessed and transferred by either of the holders or survivor if one of the account holder passes away. The survivor can opt to continue with the account. Alternatively, the balance is paid to the survivor. In case of the demise of both the account holders, then the amount is paid to the nominee.
The banks in India mostly allow up to four account holders, mostly suitable for family member or business partners. This joint account option is valid for more than two individuals where any depositor can handle the account activities. And in case of demise of one of the account holder, the remaining or surviving account holders can operate the account.
In some joint accounts, only the first account holder can operate and handle the funds and it is only after his/her demise the second account holder gets the rights to operate the account. Alternatively, the second account holder operates the account and the rights are transferred after his/her demise.
In case of a minor, a savings account is jointly shared by his/her guardian or either parent. The guardian or parent has the rights to operate the account on behalf of the minor till he/she attains the age of 18.