Joint Bank Account: Steps, Process & Rules to Open Account

Updated on: 14 Nov 2024

With a joint bank account, multiple individuals can manage finances jointly, which simplifies management and makes it easier to track spending. You can open a joint bank account online with anyone you prefer. It can be your parents, your spouse or your business partner.

With a joint account, you can save for common financial goals with your loved ones. However, while opening a joint account, make sure you have the following with your joint account partner:

Communication and clarity
Understanding requirements and creating budgets
Maintaining an individual account

What is a Joint Bank Account?

A joint bank account means an account with two or more collaborators. Each account holder will have similar ownership to this account. These accounts are mainly designed for couples and family members. However, business partners can also benefit from it.

How to Apply for a Joint Account?

There are majorly two ways to open joint bank account online and offline:

Online Process

Step 1: Select a bank with which you wish to open the account
Step 2: Go to the bank’s website or mobile app and check joint account options
Step 3: After selecting the account, click on ‘Open Account’
Step 4: Fill out the application form
Step 5: Read all the terms and conditions
Step 6: Submit your documents
Step 7: Wait for approval

Offline Process

Step 1: Choose a bank where you want to open an account
Step 2: Visit your bank’s nearby branch
Step 3: Ask for a joint account application form
Step 4: Fill out the form and attach the documents
Step 5: Make your initial deposit
Step 6: Read all the terms and conditions
Step 7: Sign and submit

Also Read : What is a Current Account?

Joint Account : Know Rules of Joint Account

While maintaining your joint account in bank, there are some joint account rules in India you must know:

Account Operation

After you open a joint bank account, each member will have the same access and contributing options to maintain the account in India. While applying for the joint account, you will need to choose any one of the following operational methods:

Joint: If one of the account holders dies, the account will be inoperable.
Either or Survivor: The account has two account holders and both can operate equally.
Joint or Survivor: After one of the account holders dies, the survivor can decide whether to continue the account.
Former or Survivor: This account is operable only by a primary account holder. Upon the demise of the primary account holder, the second holder can operate the account.
Latter or Survivor: The second account holder operates such accounts. In case of their demise, the primary account holder can take over.
Anyone or Survivor: This type of account is operated by multiple account holders without any restriction.

Funding

Based on how the account will be operated, you can decide whether all or one account holder will deposit the funds in this account. You need to make this decision when you open a joint bank account.

Withdrawal

Every joint account holder enjoys the benefit of withdrawing funds from the account. Regardless of who funds the accounts, the account is accessible to every account holder.

Account Closure

Regardless of whether you are the primary account holder or not, anyone can close a joint account at any point. However, each account member needs to sign for the closure of this account.

Perks of Joint Accounts

The rules of a joint account are meant to offer convenience and security to the account holders. Here are some of the key benefits of joint accounts in India:

Convenience
Better savings
Shared financial responsibility
Potentially larger account balance
Collaborative decision-making
Easy financial management

Selecting your bank and deciding on the operational measures is an important step before you approach the bank. Joint accounts are a great way to manage your finances and work towards your fiscal goal. In case you need funds for individual use or to upgrade your life as a couple, you can get instant cash up to ₹5 lakhs via the Fibe Cash Loan.

Competitive rates of interest with a flexible repayment period of 3 to 36 months are some of the perks you can enjoy. To top it off, you can foreclose your loan without any added charges. To get started, register on our website or download our Personal Loan App.