What Is a Joint Account? - Steps To Apply | HDFC Bank (2024)

Planning to have a joint account with your parent, spouse, sibling, child or business partner?

Think carefully.

Holding a joint account has several advantages but is also fraught with various risks.

Read through this guide on joint accounts before you decide.

Pros of joint accounts

All holders of a joint account get equal access to funds. This makes it easier to manage daily expenses.

With a joint account, there is lesser chance of “financial shocks” since all holders know the account balance, income and expenses.

Holding a joint account makes it easier for family members in different cities to share and access funds.

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

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

Cons of joint accounts

If an account holder withdraws or uses all the money, there is little or no chance of recovery.

Any poor financial decision by a joint account holder affects the other negatively, such as loan default, issuing a bad cheque, credit card default.

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There is high risk of legal battles which may prevent access to your own funds, such as when an account holder dies or gets divorced.

If a person is involved in illegal activities, then all his accounts may be seized by law, including all joint accounts. This could restrict your access to your own money.

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What Is a Joint Account? - Steps To Apply | HDFC Bank (2024)

FAQs

What is the process of getting a joint bank account? ›

Each co-owner must provide a government-issued ID and some banks may require proof of address. The application will also require the personal details of each account holder, including their full name, date of birth, Social Security number and contact information.

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 do I need to apply for a joint account? ›

Visit the Bank: Go to the bank branch along with all your co-owners. Each person must be present and provide valid identification proof. Fill out the application form: Ask for the joint account application form and fill out the form with accurate information.

What is a joint application for bank account? ›

What is a joint account? A joint account is a bank account that has more than one owner. By applying online, you agree that all owners can access the money independently, so you can each do online banking or have your own card (if you have a joint transaction account).

What proof is required for joint bank account? ›

Together, you can choose the checking or savings account that works for you. To open a joint account, you'll need: Identification for both account owners, like a driver's license, state ID or passport. Personal information for both account owners, including your date of birth, Social Security number and current address.

How long does it take to open a joint account? ›

Opening a joint bank account can be a simple, pain-free process if you're properly prepared! Based on who you open a joint bank account with, the process of opening an account can take a few minutes if done online or a few hours if done in person.

How to join bank account with spouse? ›

If you and your spouse already have accounts at the same bank, the process is simple. Both parties should be present, with valid IDs, then you can close one spouse's account completely, transfer their money to the other spouse's account, and add their name.

What documents do you need to add someone to your bank account? ›

Adding someone to your bank account is a straightforward process. Head to your nearest bank branch or use the online option some banks offer. Make your request and be sure to bring necessary documents such as proof of identification, Social Security number, address, and contact number.

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.

Which bank is best for a 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.

Is it hard to get a joint account? ›

A joint account might damage your credit score

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.

Can I open a joint bank account with anyone? ›

Combining finances with someone isn't restricted to romantic or married couples only. There are a few other situations where a joint bank account might be a benefit. Take a look at some of the examples below: Senior citizens and caregivers: As family members get older, you may need to help them with their finances.

Does a joint bank account need two signatures? ›

that each co-owner must sign the joint account signature card. The FDIC recognizes electronic signatures. The FDIC waives the signature requirement in some cases. Negotiable instruments and CDs, for example, are exempt from the signature requirement.

Do you need both parties to open a joint bank account? ›

How to open a joint bank account. Accounts can be opened in person at a branch office or online, depending on the bank you choose. If you plan to do it in person, both account holders will need to be present.

Can an unmarried couple have a joint bank account? ›

Traditionally, joint bank accounts are opened by married couples. But it's not only married couples who can open a joint bank account. Civil partners, unmarried couples who live together, roommates, senior citizens and their caregivers and parents and their children can also open joint bank accounts.

Can two people get a joint bank account without being married? ›

You can open a joint bank account regardless of your marital status. Although keeping joint accounts works well for some couples, it can be risky for others. First, both account holders can spend from joint accounts without limit, regardless of how much each has contributed.

Does a joint account need both signatures? ›

A bank account held jointly by two parties may be named with an "and" or an "or" between the names of the account holders. Unless the account is classified as an "and" account, both parties have to sign for access to the funds.

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