Many people are confused about the term joint account and also about various rules related to joint account. A Joint account is a bank account which involves more than 1 person, or in other words joint account is an account which is shared by 2 or more people. Given below are some of the basics related to joint account –
- A joint account application must be signed by all the joint account holders who are opening the joint bank account.
- Joint account is in the name of more than one person and also there is no ceiling to the number of joint account holders.
- Under joint account any joint account holder can withdraw the money, which will be allowed under operating instructions of all the joint account holders and also any joint account holder can stop the payment of cheque.
- In case of death of one of the joint account holders the representative of that joint account holder can claim the deceased share from joint account.
- Joint account holders can nominate the person who will receive the money in case of death of all the joint account holders.
- Banks take extra care before opening joint bank account, because many people try to take advantage of these accounts in order to save taxes.
Apart from above there are many other factors which are there depending on the bank and country in which one is opening the joint bank account, which is the reason why one should look those factors also before opening the joint bank account.