A bank account can be operated by a single account holder (or) multiple account holders. You can choose the joint account option while opening an account or whenever you require.
We may think that this is a simple option which is available on Account opening application form. Actually it is a very useful and an important option.
You need to be sure as to why you want to open a joint account? Who can be your joint account holder(s)? Trust and relationship equation weigh a lot while choosing the joint-account options.
Latest Article : Who gets the Joint Bank Account Monies if one Account Holder dies?
Types of Joint Accounts in India:
You need to be aware of different types of joint accounts offered by banks, based on the mode of operation and accessibility.
Either (Or) Survivor – This is the most common form of joint account. Only two individuals can operate the account i.e., primary account holder and secondary account holder. Both can access the account and transfer the funds.
The final balance and interest (if any) will be paid to the survivor on death of anyone of the account holders. The survivor can opt to continue the account.
If the nominee is a different person then the balance money is paid to him/her after the death of the survivor.
Example : Mother and daughter can open a joint-account. On death of anyone of them, the surviving person can continue the account or get the account balance transferred to her name.
Anyone (Or) Survivor – This is similar to “either or survivor” option. The only difference is, more than two individuals can operate the account.
If you want your father, mother and spouse to be able to access and operate your bank account then this is the best option. In case of death of anyone of the account holders, the remaining survivors can continue to operate the account.
Former (Or) Survivor – In this type of joint account, only the first account holder (primary) can access and operate the account till the time he/she is alive. The second account holder (second applicant) can operate the account only on death of the primary holder (first applicant). The survivor can also get the balance transferred to his/her name (if required).
Latter (Or) Survivor – This is similar to “former/survivor” option. The main difference is, only the second account holder can access and operate the account till the time he/she is alive. The primary/first account holder can operate the account only on death of the secondary account holder.
Example : Husband and wife are the joint-account holders. Wife is a second account holder . Then in this case, only wife can operate the account. Only after she is no more, can the husband have access to operate the account.
Jointly – In this type of account, all the transactions need to be signed and mandated by all the account holders. If any of the account holder dies then the account can not be further operated. The balance proceeds shall be payable to survivor.
Jointly or Survivor –This is similar to “jointly” option. The only difference being, the survivor can continue to operate the account. Alternatively, the proceeds of the account can be transferred to his/her name.
Along with the above options there is another type which is “Minor Account.” If the primary account holder is less than 18 years of age then there should be an adult guardian, as a joint account holder.
(Below image is the screen-print of various ‘modes of operation’ provided on State Bank of India’s Account opening form.)
Addition or Deletion of name(s) of Joint account holder(s)
You can request the bank to add a new joint account holder or delete any of the existing joint account holder’s names. But, all the existing account holders have to sign on the request form if the mode of operation is “either or survivor” or “jointly“. Do remember this point.
Let’s say two brothers (A & B ) opened a joint account with “Either or Survivor” option. B (Second account holder) started misusing the account funds. A decides to delete the name of B from joint account. But, the banker says that they require B’s consent for the deletion.
Primary/First applicant can restrict internet banking access for other joint account holders (if required). Some banks provide this option in Account opening form itself. Below image ( SBI account opening form) gives you an idea about this. By choosing these options, one can provide limited access to other joint account holders.
Another important point you should be aware of is the tax treatment of joint accounts. There are chances that your banker may treat the interest income on joint-account as income of Primary account holder only (unless the primary holder mandates the bank about the specific percentages).
The various types of joint accounts provide lot of advantages like ease of operating the account, convenience, rights of survivorship etc., But do spare a thought before you add anyone as a joint-account holder.
Latest Article : Who gets the Joint Bank Account Monies if one Account Holder dies?
(Image courtesy of Mister GC at FreeDigitalPhotos.net)
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How can i close joint account without signature/cooperation of the other account holder who is the primary account holder ?
In a joint account with latter or survivor mode of operation whose customer ID will be used to carry out transactions and operations w.r.t. joint account. Debit or card will be issued by bank in whose name in latter or survivor mode of operation, and who will be responsible for tax liability in latter or survivor mode?
Dear Sadhna,
The second account holder can operate the account, so debit card will be issued under his/her name.
Banks generally make primary account holder liable for tax matters.
Related article : Who gets the Joint Bank Account Monies if one Account Holder dies?
Dear Sreekanth,
I have a small question – I have a joint account in SBI with my father and my father wants to un-link his registered mobile number and re-link my mobile number. Can my father do it without my consent.
Sir mera khata band ho gya hai.. Ar uspe anyone or survivor likha hai… To kya ek bande ke jane pe khata khul jayega kya
Hi sir,
Me and my Father are having a joint account in the bank. My father was deceased,and the bank is asking me to do the Dearth Claim and close the account..
It was an Either or survivor account…
Is it necessary to do dearth claim….
Please suggest…..
Dear Karteek,
I believe that you can keep using the account.
However, the surviving account holders should present a copy of the decedent’s death certificate to their bank as soon as possible. This allows the bank to retitle the account in the survivors’ names and avoids issues with accessing the account in the future.
Good evening sir, Sir i want to ask a question about the Former or Survivor, is it that the former (primary account holder) open the account before the second person came to join him? Or how? I’m confused please make it clear to me.
Hi,
It simply means that in a joint bank account the first named person (primary a/c holder) will operate the account in all circumstances except in case of his/her death. Only in case of death of the first person the joint holder (on former or survivor basis) would be eligible to operate the account.
The information provided in RELAKHS was very very useful for me to open a joint account. It provide all the information about different types of joint accounts and its risks. Thank you very much relakhs.com.
Thank you dear Mahesh..
Keep visiting ReLakhs.com!
Dear sir,
I was hoping you could help. My mum has a fcnr b account with PNB with funds in GBP. my mum is elderly and wants to transfer the account over to me. Can you please let me know if she will be able to do this or will i need to open a new account so she could first convert the funds to inr then transfer to me. Thanks.
Dear Raja,
She can transfer the funds to your bank account. (You can treat this as Gift)
Kindly check with your mother’s banker on this as well.
Related article : Got a Gift? Find out, if it is Taxable or Tax-free?
Hi Skelmanthorpe,
Thanks for your reply. I have spoken to the bank but they have said the fd’s will have to be broken and changed from GBP to Rupees. The Rupees can then go into my mums account and then transferred to my account. This will be a very difficult process and i will also lose some funds in the process due to the currency exchange. Can you please help me in this matter. Is this a normal protocol? Can it be done in a different way. Your help will be much appreciated.
Kind regards.
Raja
Dear Raja,
I believe thats the normal procedure (FX charges).
You may go through these FAQs (ICICI bank’s) to get some idea..
I have been an NRI for 35 years but currently in Bengaluru. (1) Only NRIs are allowed to transfer FCNR deposits to their children assuming the children are also NRIs. (2) If the children are not NRIs, then it would not be legally possible for transfer of GBP deposit to either son or any relative for that matter. (3) If the son is not an NRI, the mother can execute a power of attorney (PoA) – a standard format banks like SBI will provide allowing her son to operate the account – in which case the following conditions will apply: The PoA holder is not permitted to hold GBP (or any other foreign currency deposits) in his name under any circumstances. The PoA holder can ask the bank in writing to close the FCNR deposit and transfer the funds to mother’s NRE or NRO account. Once this is done, the mother can transfer the funds to her son’s account. If mother is no more, God forbid, the PoA holder will have to provide the Indian bank the documents they need before the PoA holder gets the “equivalent” money in Indian rupees. Will be happy to clarify any further query.
Dear Prahlad ji,
Thanks a lot for providing this very useful information! Cheers!
A & B are having Saving Joint account With E or S clause where A is prime customer. ‘A’ has deceased now after producing death certificate, B wants to delete the name of A in her existing SB account and add his nephew again instruction as E or S.
Kindly guide.
Hello!
I have a business running on my wife’s name and I have a CC account on that company name. Is it possible for me to become a joint account holder in the existing CC account?
I want to open Saving Account in the name of Two Brothers.
one brother has attentd the age of mejority and other is 17..5 years of age. They are orphan and maternal uncle is a gurgian for the minor. court documents are available with us.
Can I open saving account in the Mejor brother is a ist accountholder and minor brother can be joint account holder and operate the account by uncle till he attent the age of mejority.
Hello Sreekanth,
We are a group of 6 friends and want to Open a Joint Bank account. We want to know the following:
1. Joint account with 6 person is possible?
2. We plan to deposit monthly equal amounts to this Joint account, so how taxation part will work? (Tax on interest earned)
Reason for opening the account is that we goes for Vacation once in a year and paying all amount at same time disturbs the budget. So it will be sought of monthly EMI’s we will deposit in this account.
Dear Prayank,
That’s a wonderful idea 🙂
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, there are banks that restrict the number of joint account holders to four.
Banks generally deduct TDS in the name of primary account holder and taxation has to be taken care by such holder.
However, I believe you can submit a mandate to your banker to deduct TDS proportionately as the contribution to the account is done equally by all the account holders.
Hello sir,
I had an urgent question. In 2017 my father and his friend opened a joint account where my father is a primary account holder. After the work was complete my father continued to use that account and his friend forgot about the account. Now today my father went to bank and tried to withdraw some money, which the bank declined by saying that your account needs kyc. When my father called his friend, that person completely denied the account’s ownership and said that he never went to the bank to open that account. What should we do in this case as we do not have any proof.
Dear Anant,
May I know the type of joint account?
The key point is – – In case of joint account holders, the re-KYC declaration form is required to be submitted for each individual account holder..
My father is 86 years old and unable to sign. So his finger print has been incorporated in the bank records. I wanted to open a tax saver fixed deposit for him. The bank says that I cannot be a first joint applicant because my father is putting a finger print on the application. I can only be included as a nominee. Is the banks stand correct. Pl clarify.
Dear Radhu,
If FD is in his name, you can be a second applicant, did you check on this with the bank??
Sir, husband wife have a joint a/c , if wife needs to delete her name from the joint savings A/C it can possible to leave out her name from the A/C without the consent of her husband.
Husband wife taken a loan jointly where husband is a primary a/C holder & wife is secondary a/C holder. If wife wants to leave out from the loan a/C what should be the procedure.
Dear Goutam,
I believe that husband also has to sign a consent form to get spouse’s name removed from the joint account. Same would be the case with loan account. You may kindly check with your banker..
Good evening sir. I would like to know the rules and regulations regarding SB JOINT A/C with an adult and a minor having less than 10 years age(approx 6 yrs).Is it mandatory to have minors name as first person.THANKS AND REGARDS.
Dear Gopinathanunni,
I dont think it is mandatory..
If no mode of operation is mentioned, what is the default one?
primary /first account holder authorities and powers in joint saving account
dear sir
i have received a personal cheque book for joint saving account with other personnel the same was returned to bank on reason that i neither have association nor possesses any document regarding the account the bank has stopped the transaction
after three years i have received by post copy of bank letter indicating fresh operating instruction from all account holders signed in presence
the letter has following short coming missing full name and address and event described are incomplete. bank official refused to guide me on confidential clause
this stand is to cover up grave negligence at KYC stage /association with the staff and associated account holders for bypassing banking procedure
i have submitted an application either close the account or delete may name along with KYC details about 2 month ago
bank has not communicated till date
request to guide me on the subject and further course of action
with regards
Dear uday,
Do you mean to say that without you applying for opening of a joint account, bank has opened a joint account?
May I know who are the other joint account holders?
how can change the nominee in joint account
Hello sir,
I have a tax saver fd in joint account whose first holder is me and the reciept is also with me its due in this year . I hv a dispute with my husband i wNt to know how can i get the money as he had done either or survivour option to operation i m afraid that he could use my money when it liquify into joint account im taking the tax benefit from that fd kindly help he is also the employee of same bank in some other brancj and hav net banking too
Hi,
Kindly check with your banker if it is possible to submit a fresh maturity instructions so that you can link that deposit to your independent (sole) other bank account..
good afternoon sir,
I have joint account with my husband in allahabad bank in aligarh branch and the account was just opend after 1week of marriage and the amount given by my dad me as gift the greedy in laws forced me to made fd with husband by making him first holder jointly and after that they kicked us out from their home as well as i came to know the guy with whom i am maried is mentally crack but any how we are surviving in noida and fulfiling our basic needs and when i discussed about fd with my husband he dont have any knowledge i went to noida branch by taking the recipt they informed me that you need to visit home branch i want my account and fd amount to be transfer in noida because we are having no support in aligarh and also not in condition to bear the transportation charges and accomodation for stay because im only earning and at the end nothing is with me in saving. and the noida branch help desk inform that their is a stop created in your account . i want to know as me and my husband is account holder else then us who can create this.
please help with proper solution because i know im struggling and suffering too bcoz of greedy in laws and mentally unfit husband.
And allahabad bank customer care number is always busy and on mail they are no responding.
Dear ruchika,
Sorry to know your situation!
Suggest you to kindly take help of any local Women Organization..
Dear sir,
Kindly clarify, having a former or survivor account, tax implication on survivor will be considered or not ? even if former is still alive.
Dear Siva,
The joint-account holders can provide a mandate to the Banker about the percentage of ownership /contribution in joint-account, accordingly they can get TDS certificates (if any), else in most of the cases generally the banker will deduct TDS in the name of Primary a/c holder.
Sir.. my mother has a savings account in syndicate bank and she added me as nominee… she died recently… can i change her account to my name..?.. if so .. what is the procedure…?.. pls let me know.. thanks in advance …
Dear Sir, I have a saving A/c in SBI branch. And My father and mother have a joint A/c in other SBI branch. They are too old to go bank or anywhere else. Can I also add as 3rd joint holder with them, and select “Letter or Survivor” option. Pls help
Dear Jitender,
Yes, you may do so. You banker may ask for signatures from all of you. Kindly contact your banker.
Hi,
If a group of 10 people establish a partnership firm and open a bank account for the same.
A. How many signatories will be there?
B. If there are more than 5 or may be all 10 as signatories, then whose names will be mentioned in the check book.
Dear Vishwanath,
Kindly check with your Banker/CA.
sir
my husband has opened an account with me in delhi and now due to sepration he has taken the account outside of delhi. the account was either or survival. we have legaly seprated . now my querry is from SBI
1. either he can take the account from delhi to outside delhi without my consent being primary account holder.
2. can I ask the bank to deleat my name from the account if yes then what is procedure.
3. to which bank ihave to write 1.delhi bank or 2. outside delhi bank.
4. if it is not done how the primary account holder can harm me.
kindly reply
Dear pawan,
Either you can approach the bank together or alone. A mutual consent application signed by both is mandatory for settlements. You may have to visit the Delhi branch.
As it is a joint savings account with your spouse, the balance will be shared equally, irrespective of who deposited the money. (Unless there is court order.)
As the account is operated on either/survivor basis, either of you can withdraw the deposit amount without letting the other ac holder know about it.
So, suggest you to close the account and settle it equally.
Sir I and my had a joint a/c in govt. Bank ,and my father made a fd in our joint name and mother as nominee,after the death of my father this fd mature and out renew for new term .after second maturity when I liquidated the fd they give me fd rate and in second tenure they give us only saving a/c interest so pls tell me the correct status as per law can I claimed full interest of both term in my fd.
Dear Sandeep,
Looks like they might not have renewed the FD account.
If an FD is not claimed, banks can renew it unlimited times or pay the existing savings account rate..
Suggest you to kindly check with your banker and find out in detail..
Sir this is a joint a/c with me and my father fd was renewed and certificates was with me but now they give only saving bank interest instead of amount on the fd
Dear Sandeep,
Suggest you to check with your banker, if the FD has been renewed by you then you can question them.
Kindly check if TDS has been deducted…
I want to open the joint account of me and my mother but problem is that my mother is illiterate ..so is it possible to open this type of account and also operated by me for cheque signed by me for buying property on my mother’s name ?
My husband who is of 76 year age has a single account in his PNB bank with my name as nominee . We have shifted to another city & are doing transactions online or through ATM . Should this account be joint as he is receiving pension and is ill from the last one year
Dear Veena ji,
May I know your exact query??
I have an individual savings account in PNB and want to add my wife will but the branch told me that all together a new joint account will be opened and my wife won’t be added to the existing account please guide on this
Dear Bhawishya,
I believe that your banker might be misleading you in this regard..
The general procedure to convert savings bank account operated by Single to joint is as follows:
1. Customer has to submit an application for conversion of existing single account to joint account along with KYC documents, latest photos of the new account holder.
2. The designated official verifies the KYC documents and the signatures and authorises Conversion of the account as requested.
You may just try checking out this at another PNB branch..
There is a loan issued in my mother account(single operated). Is it possible for the bank to deduct the money from my joint account i.e (me and my mother) without my knowledge.
Dear sanjay,
If you have not submitted the joint bank account details to them for re-payment of loan (EMIs/Post dated cheques), bank will not deduct the money.
But they have already deducted the money by saying the primary holder of that account is my mother.
Dear Sanjay,
Probably, your mother might have submitted an ECS mandate through joint account. Kindly check with your banker on this!
Can friends open a joint account? If yes,what all banks allow that?
We are 5 girls who are flat mates.
Dear Arushi ..Yes, it is allowed and you can visit any bank!
Sir we have joint account four persons with anyone or survivor mandate can I one of the joint holder 4th holder make rtgs of all bank balance as i have deposited the money to the account is mine.
Dear Vaishali,
In this type of mandate, both the account holders can operate the deposit account and will have complete charge. Here, signature of both the depositors is not required. For instance, if husband and wife hold an ‘Either or Survivor’ account, either of them can fully operate it in the absence of the other.
Hi Sir,
I Have a doubted that a joint alc holder of “either or suviour” can apply for credit card with having normal salary package . what will be the benefits will be there & also problems that can happen after issuing card.
thankyou sir waiting for reply.
GOOD MORNING sir.we are 3brothers .we opened joint account on deccan grameena bank and deposited 5lakhs.one brother died.he is in married.what can we do to withdraw amount..
Dear satyanarayana ..If the account is either or survivor one, any one of you can to operate the account.
Hi sir, my father n I have joint a/c, my father is very ill and do not go anywhere in this situation if I go to the bank and take money for our joint account they are allowed me?
Dear Saurabh ..It depends on which type of joint account he has..
Kindly refer to the article ..
I am an NRI and a US citizen living in the US. I have some inheritance (from sale of a property) in my NRO account. Taxes have already been paid on this money. I am thinking of transferring the money into my minor daughter’s (15 years old) NRO account. Then, I am planning on investing this into FCNR deposits (USD) in my daughter’s name as “former or survivor”. This action will constitute repatriation of Indian rupees into USD. Now here is my question: Can I in future transfer this money to my bank account in the US? Thank you,