What is a Joint Account in Bank? Learn its Benefits | ICICI Bank (2024)

What is a Joint Account in banking terms? Learn its Benefits

Having a Joint Bank Account is a great option for people who want to share financial responsibilities with others. Unlike individual bank accounts, these are shared between two or more people, where individuals can access the account and perform transactions. This blog will help explain a Joint Bank Account and its benefits.

What is a Joint Account?

It is an Account owned and operated by two or more people. All Account holders have equal ownership with the same access and rights to the funds held in the Account. These Accounts are particularly suited for couples, family members and business partners who want to share financial responsibility. For instance, ICICI Bank Family Banking is a product that allows family members to pool all their respective accounts under one Family Savings Account or Family ID.

The Benefits of Joint Bank Accounts:

1. Easy Management of Finances -

One of the main benefits of a joint account is that it makes managing collective finances easier. With two or more people contributing to the account, paying bills, saving for common goals, and making joint purchases becomes easier. For couples, these accounts are especially useful as they can divide their expenses such as rent, utilities, and groceries.

2. Avoiding Probate -

Another advantage of a joint account is that it helps to avoid probate: the judicial process where a will is "proved" in a court of law and declared a valid public document that holds as the last testament of the deceased, or whereby the estate is settled according to the laws of the state at the time of death in the absence of a legal will.

When an individual dies, their assets are distributed according to their will or estate plan. However, if the individual has a joint account, the surviving account holder automatically becomes the sole owner of the account, and the funds do not have to go through long-drawn probate. This means the money in the account can be accessed immediately by the surviving account holder without any delay.

3. Convenience -

A joint account also provides great convenience to all account holders. Each individual has access to the account, and transactions can be made promptly and easily as a single account. This is particularly useful in case either account holder is unavailable, and the other can handle transactions on their behalf.

4. Increased Savings -

Joint accounts also offer the benefit of saving more money together. With two or more people contributing to the joint account, saving for common goals such as holidays, weddings, and other big purchases naturally becomes easier. The account can also set aside money for emergencies or unexpected expenses. This makes it an excellent tool for financial planning as well.

5. Better Financial Planning -

A joint account can help people plan their finances better. With both (or more) account holders having access to the account, it becomes easier to trackcollective expenses and identify areas where money can be saved. This can be particularly useful for couples who are looking to save for a down payment on a prospective home purchase or planning for their retirement.

6. Better Credit Score -

Amazingly, joint accounts can also improve the credit score of all account holders. With regular deposits and timely payments made from the account, it becomes easier to build a good credit history. This is particularly useful for people who are looking to take out a joint loan in the future.

Save Together As One With Family Banking

Family Banking from ICICI Bank lets individual family members group all their respective accounts under one Family Savings Account or Family ID. If you’re looking to open a joint account with family members: you can go for a Savings Account or open a Fixed and/or Recurring Deposit account.

By doing this, you can enjoy the benefits mentioned above: anytime, anywhere. With a joint Family Savings Account, all family members will be able to carry out transactions like paying bills, making deposits, raising requests and doing a whole lot of other things. These can be done through all our available channels, such as internet banking, mobile banking and customer care.

Enjoy These Benefits As One

If you’re ready to begin banking with your near and dear ones, our instant account opening facility will have your family account up and running in no time. All account holders can enjoy great offers and discounts when they pay securely through their account debit card, earn reward points and be able to transact at over 15,000 ATMs across India.

Not just this, there are a lot of other benefits in store for families that bank together.

Special Privileges

The entire family can enjoy the advantages of special services from ICICI Bank, such as Privilege Banking, Wealth Management and Private Banking.

What’s more, the minimum required balance can be maintained through either one or more of the accounts held by family members.

Maintain Minimum Balance

The monthly average balance to be maintained is even lower at the family level. Members don’t need to maintain minimum balance individually.

An Array of Accounts

The entire family can access all exclusive offers and benefits of any category of Family Accounts. This invoices Savings, Good Privilege, Silver, Titanium Privilege, Private Banking and Wealth Management.

To Families That Bank Together<

A joint bank account like the Family Account at ICICI Bank is a convenient collective tool for couples, family members, and business partners who want to share financial responsibility and grow their wealth together. If you’re thinking of opening a family account, say hello to easier management of finances, convenience, more savings, better financial planning, and improved credit scores. Ensure all account holders are aware of their responsibilities and clearly understand how the account will be used. This willmake for a secure and convenient way to manage finances. Visit your nearest ICICI Bank with all account holders to be, or get in touch with us to open a Family Banking Account.

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What is a Joint Account in Bank? Learn its Benefits | ICICI Bank (2024)


What is a Joint Account in Bank? Learn its Benefits | ICICI Bank? ›

Having a Joint Bank Account is a great option for people who want to share financial responsibilities with others. Unlike individual bank accounts, these are shared between two or more people, where individuals can access the account and perform transactions.

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.

What is joint account answer? ›

A joint account is a bank or brokerage account shared by two or more individuals. Joint account holders have equal access to funds but also share equal responsibility for any fees or charges incurred. Transactions conducted through a joint account may require the signature of all parties or just one.

What are the rules for joint bank account? ›

All joint bank accounts have two or more owners. Each owner has the full right to withdraw, deposit, and otherwise manage the account's funds. While some banks may label one person as the primary account holder, that doesn't change the fact everyone owns everything—together.

Can someone on a joint account see my other accounts? ›

If your joint account holder uses your Login ID and password, they will be able to see all accounts associated with your Social Security Number.

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.

Is joint account good or bad? ›

Key takeaways. Having a joint bank account can help couples work together on finances and money goals. Keeping separate accounts might work better if you and your partner have very different money management styles. Holding a joint account as well as individual accounts might be the best solution for some.

What is a joint account in bank? ›

A joint bank account is an account shared with another individual for things such as paying the bills, depositing paychecks or saving for a vacation or down payment on a large purchase, such as a house or car.

Who owns the money in a joint bank account? ›

Both owners of a joint bank account own the money in it equally. That means you have the ability to deposit and withdraw funds as you wish – and so does the joint account holder. Since both people have equal ownership and access to the money, it's important to set boundaries regarding how the account will be used.

Which bank is best for joint account? ›

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.

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

Up to £85,000 per person, per banking group is normally protected. Most joint accounts are protected by the Financial Services Compensation Scheme (FSCS). In the unlikely event your bank, building society or credit union were to fail, you'd automatically get your money back – up to £85,000 per person.

What are the risks of opening a joint bank account? ›

Equal Responsibility: A joint banking account puts all co-owners on the hook for any overdrafts or issues associated with the account. This means the account assets are open for seizing to creditors, liens, and lawsuits if other co-owners get into financial or legal troubles.

Who has control in a joint account? ›

Joint Account

A joint owner or co-owner means that both owners have the same access to the account. As an owner of the account, both co-owners can deposit, withdraw, or close the account. You most likely want to reserve this for someone with whom you already have a financial relationship, such as a family member.

What is the difference between a joint account and a beneficiary? ›

Joint account holders have the same rights and access to an account as the primary account holder. A joint account holder can designate beneficiaries to the account without authorization from the primary account holder. A beneficiary has no rights or access to your accounts.

Who owns a joint account when one person dies? ›

In the majority of cases, when one of the owners of a joint account passes away, ownership automatically passes on to the surviving member (or members).

Is there a downside to joint account? ›

Lack of control. You cannot control how the other party spends your money. If your partner decides to spend frivolously, you will both feel the blow. This sort of problem can lead to many fights about what is necessary to spend on and what isn't.

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