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.
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.
(Image courtesy of Mister GC at FreeDigitalPhotos.net)
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,
hi,
very important artilcle.
i have opened the MF UTILITY account. wherein in mentioned the nominee. Can i make this account jointly?
anyone or survivor.
You may make it dear abhee ..as per your requirements..
thanks sree
Very informative and useful article. However, the condition of submitting consent signature of all the account holders for deletion of name of any account holder is sometimes found to be illogical. For example, in a divorce case, a husband has paid huge alimony to the wife towards full and final settlement of all her claims and she has no right over husband’s movable or immovable property. On the strength of divorce decree from the competent court, the banks should delete the name of legally separated wife from their joint savings bank account, without insisting on her signature. However, bank don’t do this and harass men for no reason. The Reserve Bank of India should look into the grievances of the harassed husbands who have legally separated from their wives, but banks are forcing them to stay together.
Dear Monica,
Valid point.
Yes, the court order can be used to close or distribute the monies lying in Joint account.
The Bank didn’t agree to delete the joint account holder’s name on the strength of the court decree. The matter has been taken up with the Ombudsman, Mumbai.
converted my single account to joint with my wife.
i had PMJBy PMSBY & internet banking
Shall all these remains with me or to re apply
Dear Habeeb ..Will remain the same and I believe that there is no need to re-apply. Anyways, you may also check this with your banker too.
husband and wife are opening a bank account. kyc for wife is required if husband is submitting his kyc.
Dear Prem..I believe that banks are now asking for KYC from all account holders.
Sir,
My mother had joint fd with her two sisters.made on all jointly basis.due to some reasons the other two ladies (joint holder) wants to remove their name fm fd and saving accnt.They both r ready to follow proper procedures.
But abhyudaya denied.pls guide me what to do.what r the proper procedures.
Dear RJ,
They can approach the bank and submit the necessary application. If banker does not agree, you may escalate the issue.
Firstly give the Application + Fixed deposit to branch manager mentioning want to remove 02 sister;s name in Fixed deposit. And take receiving on the letter. This is your right definitely Branch Manager will do.
If don’t agree to do then lodge the complaint to head office.
(OR)
Close / Premature the fixed deposit and make new fixed deposit in only mother’s name.
Dear Vivek..Thank you for sharing your views.
Dear sir
i want to transfer money to my friends bank a/c but his a/c is jointly opened with his wife . so i am confused over the name of receiver account holder name . whether it will be my friends name or both . plz guide me . thanks in advance.
Dear shankar,
You can mention either of the two names and with bank account number.
HII SIR
I WOULD LIKE TO NOW THAT I AND MY MOTHER HAVE A JOINT ACCOUNT IF MY MOTHER IS OUT OF STATION I CAN GO TO BANK AND WITHDRAW THE CASH FROM THE ACCOUNT??
Dear VISHNU ..Yes, provided it is Either (Or) Survivor type of joint account.
Dear sir,
My father gifted me some money as a wedding present. Post-wedding my mother-in-law pressurised me to make my husband (who is a foriegn national) a joint holder of my account and an fdr(issued from the same account). After they ghosted on me, I hot his name removed from the fdr, without his consent. This was done by a sympathetic bank manager. I want to know, can my greedy in-laws hold me legally accountable? It was my account and the money in my account was transferred from my father’s account. My husband became the joint holder after 3 months
Dear inderpreet,
What type of joint account is it?
Dear sir,
I would like to know the current policy of the Banks in regard to the fixed deposits held jointly in E or S format. This query has arisen bcas my bankers have refused to delete the name of my deceased mother ( first name ) from the FDR even though I submitted the death certificate to the Banker. The other holder is myself. The reason offered by the Bank is ” the system , meaning the software, does not permit it “. Can you enlighten me on this subject sir ? Thanks and regards,
Dear Ranganathan..You may escalate the issue to the higher authorities of the bank. I believe it can be done & has to be done as per your requirement.
I HAVE JOINT ACCOUNT WITH MY MOTHER WITH OPERATION E OR S.MY OLD MOBILE NUMBER IS OUT OF ORDER.MY MOTHER IS OUT OF COUNTRY.WHETHER THE BANK CAN CHANGE MY NEW MOBILE NUMBER IN ACCOUNT WITH MY LETTER SIGNED BY ME.
Dear RASHDA ..I believe – YES.
Sir, my doubt is weather eos joint account holders names can be interchanged? i.e., first name as second and second name as first. How to approach the Bank for this ?
Dear Mr Reddy,
You have in your comment mentioned ‘Payment of my pension is held up for changing of my name as first customer in place of my wife’, does this mean the names have already been inter-changed.
Suggest you to contact your banker directly, they will surely help regarding this matter.
SIR, I am holding a joint eos a/c in SBI for more than 2 decades. The a/c has my wife’s name as first customer and mine second. Payment of my pension is held up for changing of my name as first customer in place of my wife. How to get these changes please?
Dear Mr Reddy,
You can update your employer about the changed account details.
Hello Sir , My Father had an account to which he added me and my wife as joint account holders. Both me and my wife had internet access to the account. He died recently , we are still waiting for death certificate. In the meanwhile can we still operate the account legally? One more question , I have to go abroad in a week’s time for short term (3 month) assignment. Bank officer said that both me and wife have to sign to remove father’s name. Can this wait till I come back?
Sir I want write a letter to the bank to make joint account of my father and mother…
so that my mother can withdraw pension Money in presence of my father…
how to write sir.. what’s format ????
Sir,
I want little Guidance for -Bank -Saving Account of Public Charitable Trust
There was aOld Trust bank account with Nationalised bank with three signatories.
New resolution admitted to bank for change of Signatories without signature s in resolution of outgoing signatories. Can bank change the signatories without confirm or without signatures of outgoing signatories ?
please reply.
Thanks !
Dear Right Shah..I do not have answer to your query.
There is one cash credit account having debit balance. The cash credit account is run by the sole proprietress, and is collaterally secured by the personal guarantee of her husband. There is also one SB a/c, where the name of the sole proprietress is primary and her husband is secondary under the mandate “either or survivor”. Without any kind of intimation the Bank receives a cheque of other Bank favouring “the name of the second holder – settlement amount to nominee of the name of the first holder – deceased”. No death certificate was produced to the Bank.
Can Bank can stop payment withdrawal in the savings account under the circumstances that the guarantor of the CC a/c cum second holder of SB a/c has not formally intimated the Bank about the death of his wife, where responsibility of adjustment of the CC a/c rests with the guarantor in case of death of borrower.
Dear Pradip ..I do not have a proper answer to your query.
Sir,
I have a joint account of me and my hod sir.I have a scholarship of about 15000.but I have not withdraw my money as further if required then i will.but unfortunately he was transferred to another CLG .how I got that money.I am an engineering student.
Dear Gyana..If the a/c can be operated by either of you then you can just visit the bank and make cash withdrawal from the account.
Hi Sir! I’m a 1st year intern. My senior has just given me these facts. Facts: The client, inadvertently, withdrew large amounts of money from a joint bank account of his, his late brothers, and his nephews. The nephew has filed an FIR against the client just to trouble the old man. The client has already returned the withdrawn money with interest.
Could you please help me to know when does withdrawal of money from a joint account amount to a crime? (In India) (specifically crime meaning a criminal breach of trust)
Dear Amogh..If the account is jointly head (either or survivor) then all the parties are treated equally as owners of the account/deposits. So, it is acceptable as per law to withdraw the amounts.
HI, we have a NRI and FCNRI account with SBI in four names. It is either or survivor . My husband has passed away . Do we need to make any change to this account? We have FD s in all four names Do we need to change thematic?
Dear Sudha..Yes, it is better you inform about the unfortunate event to Bankers and get the accounts updated accordingly.
My father had a either/survivor joint account with his “daughter in law” in a leading pvt bank in Delhi. After my father passed away in 2013, his daughter in law refused to show any details to his wife(my mother) even after making several requests. I consulted with bank but they provided me a written(in e-mail) in which bank advised to contact survivor in case to get any account details. As I have read, survivor is only a guardian in such account and has to hand over deposited balance money and account details to legal heirs of primary account holders. Including, I made a request to bank to remove my father’s name from joint account for further misuse. Bank did that.
My question is that can legal hires of primary joint holder has no right to claim a penny in such account, please advice
Dear Manish,
Kindly note that in joint account with either/survivor type, the survivor is not just a guardian but also the owner of the account.
Now that the father’s name has been removed, so is she the primary (sole) account holder of the account now?
Legal heirs have rights to own a share of deposits held in the joint-account. But I believe that the legal heirs of the deceased account holder cannot make any claim against the bank until the death of the surviving account holder. The bank would stop the survivor from operating the account, only if the legal heir produces a court order that restrains the bank to do so.
It has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.
What does these RBI directions means towards legal heirs rights, could you please check this one?
Dear Manish,
It is similar in meaning to what I have shared in my previous comment.
Nominee of the account is only a trustee of the funds. The real owner is legal heir.
My savings account is in my name, as first account holder and my mentally handicapped son is second
account holder, can I give instructions to the bank that I as first account holders can withdraw the money from the account as there is a possibility of somebody taking advantage of my son’s disability because my elder is U.S.citizen and he cannot be a joint account holder. Please advice. Thanks.
Dear Lalani..Yes you can update the a/c as required. You can opt for ‘former or survivor’. You may also write a WILL making him as the beneficiary for that particular account.
Hello Sreekanth,
I have a savings account in SBI and I want to add my father as joint account holder.
However, I need my Father as Primary holder and myself as Secondary holder, and continue existing Mutual funds and LIC investment with my name as investor.
Could you please confirm whether this is possible?
If it’s possible, then any investment which I am currently doing in MF orLIC, Do I need to inform respective bodies regarding change of my account from savings to joint account with myself as secondary holder?
Thanks.
Dear Mangesh,
Yes, it is possible. Firstly, you can opt for ‘either one of the account-holders can operate the account’.
You can continue to hold as a ‘sole owner’of your investments.
Hi,
If FD is held under either or survivor clause for 10 yrs and the primary holder expired in between,can joint holder continue to hold FD?
What about the TDS part?primary holder exipired to submit 15H(both are senior citizens) .
Is there any exemptions for TDS in case of primary holder death.
Joint holder do not want to close the FD and rebook at low rates available now.
Pls suggest what can be done in this case…
Dear Rama,
Yes, can continue to hold the deposit.
The secondary a/c holder can submit Form 15H.
Kindly read:
Misconceptions on TDS.
Hello! I do not have much knowledge about banking but your article really helped me a lot..Thankyou!
I have a few questions:
1) I wish to open a joint account (Savings) with my partner, but we both are students now! This Joint account will be for future business as well. So will the bank ask for any reason why we both are opening a joint account or so??? (usually joint accounts are business related I think)
2) If in case, the joint account is done, and in future (after marriage), I wish to change my name, can that be done???
Will that create any problem with the account??
3) As i read in your comments, few people mentioned about tax deductions, so even if we are opening a savings joint account as students, there will tax deduction??
4) Which will be the best Bank with all advantages to open a Joint Savings Account considering the Future point of view??
It will be grateful if you help me with these as my doubts will be cleared and with a satisfied mind I can open the Joint account and I am sorry if I have asked anything wrong, as I am a little poor with bank knowledge.
Now a days, bank staff is rude and have no time to explain all these things!!! (last experience in Union Bank I had)
Thankyou! 🙂
Dear Dhanashree,
1 – Both of you can open a Joint a/c. Not necessarily, joint a/cs can be opened for non-business purposes too.
2 – No issues. Required documents have to be submitted to the bank.
3 – Yes (depends on the quantum of interest income).
4 – Kindly open an a/c in a bank with which both of you are comfortable with..
I know some FD’s and two three a/c s are in the name of my mother & married sister. If I want to stop them to withdraw that amount from the bank then what I have to do? Because the amount actually deposited rental amount by my mother. Somehow they managed to do this job jointly-mother & sister without my consent. Pls help me out.
Dear Pal..For bank, they are the owners of the amount or deposits lying in the joint account. You may ask your mother to make the a/c as an individual account. But both of them have to visit the bank and sign.
My father has a pension account whose joint account holder was my mother. After my mother passed away, the account is in only my father’s name. Can I (his son) be a joint account holder of this account if my father so desires?
Dear abuabs..Yes, you can be a joint account holder. Both of you have to visit the branch and can get this done.
my friend is a joint home loan account holder along with her husband. for the past years they had problems and have been living apart. she got to know now that he stopped paying home loan for the property which goes from his account after she applied for home loan to take care of her kids education. is there any way she can get her name out as he’s not providing any information – the bank stated he has defaulted for the past 4 months
Dear Henry..
‘Default on a loan’ is a serious issue, she may not be eligible to get the required home loan (new loan) too.
So, its better she first approach the old home loan banker and settle this issue. As, she is the joint borrower (assuming she is the co-borrower), its her liability too.
If i am a secondary account holder, whether do i need to declare joint account details in my IT return?
Thanks in advance!
Dear Suresh,
There is lack of clarity with respect to disclosure of Joint Bank Account in the ITR.
I believe that the 2nd account holder is not required to disclose the details of such a bank account in his/her ITR.
my SBI joint E/S a/c can change to single a/c .
yes/no
Dear Ranit..It can be converted to a Single account, provided both the account holders (joint holders) visit the bank branch and submit the duly signed request.
Sir I want to know about the rights of primary holder in a joint fd which made on all jointly basis?
Dear Rahul..It depends on the mandate you give ie ‘Either or Survivor or Former or Survivor or Joint clause’.
Is it necessary to have a joint account in a bank where do u want to make joint(3members)fd.Or it will be fine that out of the 3members one has saving accnt there.
Dear Rahul..Having a Savings account (joint/individual) is not mandatory to book a FD. Bankers generally urge for a SB account if you are opting of any interest payment other than cumulative payment at the end. This is to facilitate easy interest payments.
Hello Sir,
I have a query about Opening New Joint Account with One Bank Say (SBI)
I have to Open Three New joint account with Primary Holder same in all Joint Accounts say:
First Account in which Mr A (Primary Holder) Mr. C & Mr E both Joint Holders
Second Account in which Mr A (Primary Holder) Mr. F & Mr. G both Joint Holders
ThirdAccount in which Mr A (Primary Holder) Mrs. K & Mrs. H both Joint Holders
Can I able to open said joint accounts with banks.
Dear Amol..Yes you can open..
HI Sreekanth!!!
Read your article and find it useful but have few queries listed below:
1. How many members can be added while opening a joint account which gives right to operation to primary account holder.
2.Are joints account safe for accumulating money amid friends to help each other in times of distress/need. (Forget the trust part but process wise)
3. If you agree with point no.2, then how we are going to be effected with tax liability.
Would appreciate your valuable advise on the matter. Awaiting your feedback on the matter
Thanks
Shakun
Dear shakun,
1 – I believe that RBI has not specified any limit.
2 – Safe from banking point of view.
3 -You can give a mandate to your banker about the proportion of A/c ownership, accordingly they can deduct the taxes (if any).
Sir,
My father is having pension account (State Government) in Andhra Bank and my mother is joint account holder. Recently my father expired and she is not in a position to get the pension to the same account even though it is a joint account holder. ECS showing reason as MISCELLANEOUS – 04
Dear HIMANSHU..You may contact your Father’s employer and update new Account details (if any) with them. Also, kindly check with the banker about the possible reasons.
Hello Sir,
I and 2 of my friends want to open a joint bank account. Is it allowed? Can non-blood relatives open a joint bank account?
Thanks,
Bhavin.
Dear Bhavin..Yes it is allowed.
I opened new account, but the consult staff is saying that when my fathers pension account is opened, that is linked to joint account which is showing my mothers name as vaniammal, this account was opened in 1977 with my mothers nick name.
Dear Mani..Ok. May I know who is paying the pension amount (employer)? Is it possible to contact them. You can update the ex-employer and get the pension credited to new bank account.
My father expired recently and had a joint account (pension) with my mother in BOI. Mothers name in Joint account is veniammal opened 36yrs ago, But in PPO it is Logavenni, and same in Aadhaar card ,ECHS & Canteen card of Army. My mother has to get pension, bank is not changing the name and not telling what next to do. EAGERLY WAITING FOR YOUR REPLY BY RETURN EMAIL.
Dear Mani,
You may consider opening a new account on her name and submit required documents to get pension to that account right?? Is this possible?
Hi Sreekanth,
As i above said my mothers name in the joint account was opened with her Nick name Veniammal, so i considered opening a new account with the original name ‘Logavenni, as in PPO, Aadhaar card, ECHS card & Canteen card of army but the consigned bank clerk is not accepting it as there is a name variation in it. Can you please help me with this ? EAGERLY WAITING FOR YOUR REPLY BY RETURN EMAIL.
Dear Mani..What is that they are not accepting? Are they not accepting to open a new account?
At the time of opening the account which document submitted by your mother, request with your banker to check the same in his records.
And if bankers not agreed please type a affidavit and notrised then submit to bank for name correction in bank.
Hi Sreekanth,
I’m a primary holder of my account and my father is secondary.The account was opened when I was in college, now I’m earning. While using internet banking I’m the only one to get OTP but whenever some amount is withdrawn or deposited in the account it gives sms to my father about the details on his mobile which I don’t want!
So, is there way his number can be replaced by mine without requiring his consent.
PS- In the update your info column, I couldn’t find his mobile no. listed anywhere but still he receives sms.
Dear Swamy,
You check with your banker (customer care) and get the mobile number updated as per your requirements.
Hi Srikanth,
Along with 2 of my friends, I’m looking to open a Joint account! We just want it to be hassle free, Hence checked online on Bank Bazar regarding the procedure, But It only shows the option to be a single account.
Is it compulsory for us to go the bank ?
PS: All 3 of us are in different cities.
Thanks,
Pranav
http://www.pranavdivakar.com
Dear Pranav,
I believe that it is mandatory to visit a bank. By the way..your website is cool.
i was having in single account (saving accounts) in sbi then i need joint account what is the document proof is required.
Dear selvamani,
You would like to convert the single ac to joint ac or do you want to open a new joint account??
Both ID Proof ,Address Proofs , PAN Card and adhar card with request application to add other joint holder’s name in account.
sir, I added my mother as EOS in my bank account and till now she had not signed any cheque, now i have some problems financially and I may face cheque bounce case soon or later. will my mother has to face the problems? if yes? what should i do to protect her from this situation.pls help
Dear Saleem,
Who is the primary account holder?
If you are expecting a cheque bounce, you may inform the beneficiary about your financial situation and get this sorted out right??
I am the primary account holder and beneficiary is fully dependent on me. thank you and awaiting your reply
Dear Saleem..Suggest you to inform about your situation to the beneficiary rather than taking risks.
Respected Sir, I have FD s and SB a/cs with my wife. Now I am separated from my wife, not legally. I want to delete her name from those a/c s. She is not cooperating with me and denied to do the signature in the application. Kindly tell me what to do? Any lawyer’s letter can help me? Thanks. Regards and best wishes, Kallol Biswas. Kolkata 700045, West Bengal. EAGERLY WAITING FOR YOUR REPLY BY RETURN EMAIL.
Dear Kallol,
I believe that your spouse’s signature is compulsory.
i am having fix deposit with my wife where i am first holder and my wife is second holder , can i remove my ( first holder ) name from the fd ?
Dear Chitresh,
I believe that you may have to cancel the FD and book new FD with single name.
Hello Mr. Reddy
In an either or survivor fixed deposit scheme, what is the rights of the first name holder? can he or she withdraw the money without the signature of the second holder? Will the second holder be able to withdraw the money without first account holder signature? Or will a bank ask the signature of both account holder?
Thanks in advance
dear Mr. Reddy,
I opened a joint account with my mother who is not working and has no source of income. i am giving her some amount of money monthly. she got a FD done. now when that FD will mature, will there be any tax on that? My mother annual gain is much less than income tax slots. but being me as a joint account holder, I am concerned that it should not fall on me.
please clarify
regards
Dear Kunal..Kindly read my article on ‘Gifts & Income tax implications‘.
I have a joint account with public sector bank wherein I am currently set as primary holder and my spouse as secondary. Can the account holder relationship be reversed now ? i.e. My Spouse as primary holder and me as secondary holder. We noticed that bank deducts TDS against primary holder which increases my taxable income unnecessarily.
If the swap in holders is possible, what is the process to follow ?
Best,
BP
Dear BP,
You can give a mandate to your banker about the proportion of A/c ownership, accordingly they can deduct the taxes.
If this is not possible, you can reverse the a/c relationships. Kindly contact your banker about the procedure.
You can submit Form 15 g to your bank for not deduction of TDS
I just want to know the disadvantage of opening a joint account……….
Is it safe?
Dear Moushumi …Why do you think it may not be safe? Would like to know your views..
In joint bank account who will be sole responsible for pay the tax? How other partner will show his/her income proof from his/her particular joint account. How many member can jointly open joint account?
Dear Champak,
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 issue TDS certificates in the name of Primary a/c holder.
Two or more people can open a joint-a/c, I believe that there is no specific limit on the maximum no of account holders.
My father expired recently and had a joint account (either or survivor) with my mother. IOB officer is insisting that we close the account and start a new one in my mother’s name. The only trouble is that there are a few standing instructions (both deposits & outgoing) on the account — opening a new account will need setting up all those. Can my mother insist on operating the same account.
Dear Gopal,
Yes, your mother has every right to continue and operate the account. If they do not agree, raise the issue with the senior management of the bank.
You may contact bank ombudsman of IOB.
(Are they giving any reasons for saying so..??)
I would like to know fixed depoits in the joint names of adult working children. what would be the tax implications. whether interest warnes would be between the two and tax also to be paid between the two.
Dear Chitralekha,
You can declare to the bank about the specific percentages of your contribution to Savings account / deposits. Accordingly, the interest earned & taxes can be shared between the two. In most of the cases, if there is no mandate, banks generally issues TDS certificates in the name of Primary account holder.
Hello Sir,
In case of either or survivor option, if primary a/c holder dies can we interchange the primary and secondary a/c holder option without deleting the name of deceased person. So that TDS may be deducted in the survivor PAN??
Dear Gorav,
If primary a/c holder is no more, you need to inform the bank about the unfortunate event and get the bank records updated accordingly.
Hi , Thanks for the useful info. I have some questions.
1) Which one of the joint account holders will have the tax implications ?
2) Is it possible that only the secondary account holder to bear tax implications ?
3) Is it possible to interchange primary and secondary account holders in the context of Either or Survivor ?
Thanks in advance.
Hi Sir, I have seen banks issuing Tax Deducted at Source certificates on Primary Account Holder’s where no specific information on source of funds, percentage of contribution etc., are provided to the bank. If one can issue a mandate to the bank that the Secondary Account Holder is the sole contributor of funds then he/she will be liable to bear the taxes. Source of funds is very important in this scenario. To modify the ownership hierarchy , all the existing joint-account holders have to sign the necessary request form and submit it to the bank. Accordingly, the ownership structure can be changed.