Joint Bank Account Rules: To make financial transactions between two people easier, many people prefer to open a joint bank account. Which may include spouse, parents and children or other trusted members. The specialty of such an account is that two people use the same account conveniently.
However, before starting a joint bank account, it is important to understand its rules, rights and responsibilities. So that there is no problem of any kind in future. Let us know about the important aspects related to joint account….
It is important to understand the operating mode in joint bank account
The most important thing while opening a joint bank account is its operating mode. On this basis, it is decided who will operate the account and how. Banks usually offer different options for this. In ‘Either or Survivor’ mode, either of the two account holders can use the account alone and withdraw money.
Whereas in ‘Jointly’ option, consent and signature of both the people is required for every transaction. Due to which security increases but the process may become a little slow. Apart from this, in ‘Former or Survivor’ mode, he operates the account during the lifetime of the main account holder.
People often choose ‘Either or Survivor’ option in joint account, because it is more convenient. In this, in case of emergency, money can be withdrawn immediately by any one person. However, caution is also necessary with this facility, because either of them can make transactions without the permission of the other.
Whose responsibility is it?
While opening a joint bank account, it should be kept in mind that both have equal responsibilities regarding the bank account. If there is an overdraft, a check bounces or any problem regarding the loan, it affects both the persons. Therefore, this matter must be discussed while opening a joint account.
Don’t forget to make a nominee
Such a thought comes in the minds of people that what is the need of a nominee in a joint account. However, unfortunately if something happens to both the account holders then the withdrawal of money can get entangled in legal complications. Therefore, it is important to register the name of the nominee at the time of opening the account.
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