Types of Joint Bank account: A joint bank account is a bank account that is shared by two or more people. All account holders have equal ownership and access to the funds deposited in the account. This means anyone can generally withdraw cash, make purchases with a debit card, or write a check, regardless of who deposited the money.
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Types of Joint Accounts:
Before opening a joint account with the bank one should be aware of which type of account he wants to open. It is a common way for couples, families, or business partners to share financial responsibilities. Since there is more than one type of joint account it is advisable to know about each type of joint account before opening an account for you.
There are different types of joint bank accounts available in India. The account type that best suits your needs will depend on the number of account holders and how you want to manage funds. Here are details of the common types of joint accounts in India:
Benefits
- Shared expenses: Easily manage household bills, rent, or other shared expenses.
- Transparency: All Account holders can see the account balance and transactions.
- Convenience: Spouce or family in different cities can easily access funds.
- Right of survivorship: If one account holder dies, the remaining holder(s) automatically inherit the balance.
Either or Survivor (E or S):
This is a kind of account which is available for two individuals only. This is most popular among the couple, father and mother, mother and son, father and son etc., In this account either of the join holders can operate it and make the transactions happen. On the occasion of the demise of any joint holder then the balance lying in the bank account will be eligible for withdrawal to the surviving joint holder.
This account is most suitable for any one of the parents and any one of the children together. Husband and wife also can open this account to have it most suitable for them.
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Any One or Survivor (A or S):
All the features of this account are similar to either or survivor except the number of joint holders to open the account. This account can be opened by more than 2 joint holders. This account can be operated by any one of the account holders. At the time of demise of any one of the joint account holders the remaining survivors can continue to access the account.
Former or Survivor (F or S):
This account allows the only primary (former) account holder to operate the account. The secondary account holder cannot operate the account until the demise of the former holder. For example if a husband and his wife together open this account being the husband as primary (former) account holder, wife will get eligibility to access the accounts only after the death of the husband. But this will come to her only on fulfilling the formalities like submission of proof of death of the former account holder etc.,
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Latter or Survivor (L or S):
This is very similar to the former or survivor account. The only difference is that the secondary holder can operate the account. On the death of the latter, the former holder becomes eligible to access the account.
In all the accounts if there is a nomination, on the death of all the account holders the nominee will be eligible for the balance lying in the account. If there is a nominee then the legal successors would become eligible to get the amount.
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