Valentine's Day 2024: Seven benefits of joint savings account offered by banks (2024)

Privacy often surrounds our financial matters. However, upon marriage and having a partner, the significance of sharing finances becomes evident. Financial planning is crucial for married couples as well. On this Valentine's Day, today, 14 February 2024, let's understand the importance of a joint savings bank account.

What is joint savings account?

Are you looking to open a joint savings account with your spouse? All banks that offer savings accounts, allow you to open a joint account. According to the Reserve Bank of India (RBI), there is no restriction on the number of account holders who can jointly share one account. However, some banks restrict the number of joint account holders to four.

A joint savings account provides different operating options, such as "either or survivor," "anyone or survivor," "former or survivor," and "latter or survivor." These terms specify how the account functions and outline what happens to the funds if one account holder passes away.

Benefits of joint savings account

1)Joint account holders can collectively make decisions

2)Both holders have access to the funds, simplifying access when needed.

3)Joint accounts typically offer higher interest rates than individual accounts, making them advantageous for saving money.

4)They provide a convenient means to transfer funds between two individuals.

5)Joint accounts can also be utilized for joint investments and other financial activities.

6)A joint account is a simple way to keep track of your and your family’s finances.

7)Most banks also offer additional benefits on joint accounts, such as debit cards and cheque books for each holder.

List of banks offering joint accounts in India

SBI, ICICI, HDFC, Ujjivan Small Finance Bank, Yes Bank, Kotak Mahindra, RBL Bank, DBS, IndusInd and IDFC First Bank are among some of the lenders offering joint accounts.

Benefits of IndusInd Bank joint account

Savings Worth 65,900: Cashback, free movie tickets, fee waivers & more

Free Small/Medium Lockers for 1st Year: 50% off Second year onwards

Family Banking: Share your Account privileges with up to 4 family members- FREE

Movie Tickets and Discounts on Grocery/ Food Delivery: Joint Savings Account

Free Times Prime Annual Membership: Benefits on Food, Entertainment & Health

Free movie tickets Via BookMyShow: Buy One Get One free movie tickets Via bookmyshow.com

Complimentary Airport Lounge: on Visa Signature Debit Card

Cashback & Rewards on Debit Card: Earn up to 6X reward points for every 200 spent

(As per IndusInd Bank's website)

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Published: 14 Feb 2024, 09:58 AM IST

Valentine's Day 2024: Seven benefits of joint savings account offered by banks (2024)

FAQs

Valentine's Day 2024: Seven benefits of joint savings account offered by banks? ›

2)Both holders have access to the funds, simplifying access when needed. 3)Joint accounts typically offer higher interest rates than individual accounts, making them advantageous for saving money. 4)They provide a convenient means to transfer funds between two individuals.

What are the benefits of a joint bank account? ›

The main benefit of a joint bank account is that it makes your financial life easier. You can reduce the time, cost and hassle of paying bills by sharing household expenses such as mortgages, car payments, utilities and groceries.

Is a joint bank account a good idea for a couple? ›

Previous studies have shown a link between holding a joint bank account and having a higher quality relationship. Perhaps couples with a shared account might prompt each other to consider how their purchase will affect their partners or might facilitate transparency around finances.

What are the disadvantages of a joint bank account? ›

Drawbacks:
  • Shared Responsibility: Joint accounts require a high level of trust and financial responsibility. ...
  • Ownership and Liability: Both account holders are equally liable for any overdrafts, debts, or liabilities associated with the account. ...
  • Privacy Concerns: Joint accounts lack privacy.
Sep 27, 2023

Which bank is the best for joint accounts? ›

  • Our Top Picks.
  • Ally Bank.
  • Capital One.
  • Axos Bank.
  • Wells Fargo.
  • Presidential Bank.
  • LendingClub Banking.
  • Liberty Federal Credit Union.
4 days ago

What is the best joint savings account for married couples? ›

The best joint savings accounts include options from Ally Bank, SoFi, and Alliant Credit Union, which offer competitive interest rates, minimal fees, and excellent customer service. David McMillin writes about credit cards, mortgages, banking, taxes and travel.

Can you still withdraw money from a joint account if one person dies? ›

Joint bank accounts

If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.

Who owns a joint account when one person dies? ›

Joint bank account holders generally have the right of survivorship, which grants the surviving account holder ownership of the entire account balance. The surviving account holder retains ownership regardless of which owner contributed the money, and the account doesn't go through the probate process.

Who owns the money in a joint bank account? ›

The money in joint accounts belongs to both owners. Either person can withdraw or spend the money at will — even if they weren't the one to deposit the funds. The bank makes no distinction between money deposited by one person or the other, making a joint account useful for handling shared expenses.

What are the pros and cons of a joint bank account? ›

Pros and cons of having joint accounts
ProsCons
More transparency about spending habitsLack of financial autonomy and privacy
Easier to budget shared incomeBoth partners have to account for each other's spending
2 more rows
Feb 16, 2023

Who pays taxes on joint savings account? ›

If you have a joint account, you both may have to pay taxes on a portion of the interest income. However, the bank will only send one 1099-INT tax form. You can ask the bank who will receive the form because that person has to list the income on their tax return.

How much money is protected in a joint bank account? ›

You get up to £170,000 protected in a joint account

It's simply the same protection as if each account holder had a separate account. The best way to work out the protection that applies is to know that the FSCS considers that half the money in the account belongs to each person. An example should help...

What is the rule of joint bank account? ›

Following are the Joint Bank Account Rules in India per the account mode. Joint: All transactions in the account must be approved and signed by all the account holders. If any one of the account holders dies, the account will be deemed inoperable, and the bank will pass on the balance in the account to the survivor.

Do you get 2 cards with a joint account? ›

Yes – both account holders will receive their own debit card. Can I have my own separate bank account as well as a joint bank account?

What are the two types of joint bank accounts? ›

In the United States, there are typically two types of joint accounts: survivorship accounts and convenience accounts.

Does a joint bank account affect credit score? ›

A joint account might damage your credit score

Opening a joint account adds a financial link to the other person. This means companies will look at both of your credit histories as part of any credit checks. If they have a poor credit history, this might lower your chances of acceptance.

Who pays taxes on a joint account? ›

If you have a joint account, you both may have to pay taxes on a portion of the interest income. However, the bank will only send one 1099-INT tax form. You can ask the bank who will receive the form because that person has to list the income on their tax return.

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