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Type of joint Bank account

 

What is joint account?

Joint account is a bank account share between two or more individuals. Joint account are most likely to be used by relatives, couples or business partner who have a level of trust with each others

Either or survivor

Jointly

Jointly or survivor

Former or survivor

Latter or survivor

Anyone or survivor

1. Either or Survivor

The majority of joint accounts are “Either or Survivor” nature. This is because these can be accessed and managed by either of the account holders, i.e. the primary account holder as well as the secondary account holder.

If one of the account holders passes away, then the account balance can be paid to the “survivor” account holder.

2.Jointly

In this, all the transactions need to be signed and mandated by all the account holders. If any of the account holders dies then the account can not be further operated. The balance proceeds shall be payable to the survivor

3.Jointly Or Survivor

This type of account is similar to the above. Here the difference is the survivor can operate the account. Alternatively, the proceeds of the account will be transferred to his/her account.

Important Thing to Note:

As per the RBI guidelines, if one of the account holders in a joint account passes away, then the survivor will hold the funds only as a trustee of the legal heirs unless they themselves are the legal heir. However, when the legal heir wants to claim the funds in the account, the Bank shall make the payment to the survivor account holder.

4. Former or Survivor

In this, only the primary account holder can operate the account. The secondary account holder gets access to the account when the primary account holder passes away.

5 Latter or Survivor

This one is the opposite of the previous one. So, in this, the secondary account holder has access to the account. The primary account holder can get access to the same only if and when the second account holder passes away

Joint account open between more than two persons

Anyone or Survivor

This is similar to the joint account explained above. However, in this case, more than two people can operate the account. Thus, just like the “either-or survivor” a joint account is a good option for a couple, the “anyone or survivor” is a good option for a family as a whole. This is because this type of joint account can be managed by all the family members. If an account holder dies, the remaining or “survivor” account holders can then operate the account and become the owner of the balance amount

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