Start smart together A joint bank account is a great way for couples, family, or business partners to share funds. Before you set one up, you can benefit from learning how it works. Joint accounts have rules governing who can access it, how you withdraw money from it, and what would happen if one of the owners died. Mastering these fundamentals saves you trouble down the line.
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1. Choose the right operation mode When you start a joint account, you must decide how the account will be managed. The two most popular methods are "Either or Survivor" and "Joint." Under "Either or Survivor," any one of the individual holders can use the account without restriction. Under "Joint," all the joint holders must sign before a transaction can be carried out. Select an option based on how much individual freedom or shared control you prefer for the account.
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2. All the joint holders must do KYC All account holders under the joint account are needed to fill out their Know Your Customer (KYC) details. That includes showing identification and address proof like PAN, Aadhaar, or passport. Even though a person may already have an account in the bank, they will need to show documents again for the joint account. KYC is mandatory for all holders before the account can be activated.
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3. It can be linked with UPI and cards Joint accounts can also be linked with mobile banking applications, UPI IDs, and even get individual debit cards per owner. However, UPI facility might not be given by every bank for both the users. This depends upon the bank's operation mode and policy. Always verify how mobile and internet banking will be offered for every account holder before linking services.
4. Know how tax reporting is done If you get an interest from a joint savings account, you will need to pay tax on it according to the money each contributing holder put into the account. If both contribute an equal amount of money, then the interest has to be paid 50-50 for tax. But if one holder puts all the money in, they will be solely taxed for it. It is prudent to keep track of your deposits in order to know who owes how much tax so that there’s no mismatch when filing your income tax returns.
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5. Plan for what will happen if a holder dies If a joint account holder dies, the mode of operation makes a difference. In "Either or Survivor" operation, the surviving holder can continue to use the account. In "Joint" operation, the access is blocked until legal formalities are met. It is advisable to check nomination and confirm documentation so that funds are not stuck.
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Open with clarity Opening a joint bank account is easy, but it takes some trusting and knowing each other for it to work seamlessly for owners. Talk over who will deposit, who will withdraw, and how access to the computer will be managed. Once all that is organized, a joint account can be a great financial tool for couples and families.
![1. Choose the right operation mode When you start a joint account, you must decide how the account will be managed. The two most popular methods are "Either or Survivor" and "Joint." Under "Either or Survivor," any one of the individual holders can use the account without restriction. Under "Joint," all the joint holders must sign before a transaction can be carried out. Select an option based on how much individual freedom or shared control you prefer for the account.](https://images.moneycontrol.com/static-mcnews/2025/07/20250720061033_2-378x213.jpg "1. Choose the right operation mode When you start a joint account, you must decide how the account will be managed. The two most popular methods are "Either or Survivor" and "Joint." Under "Either or Survivor," any one of the individual holders can use the account without restriction. Under "Joint," all the joint holders must sign before a transaction can be carried out. Select an option based on how much individual freedom or shared control you prefer for the account.")
![5. Plan for what will happen if a holder dies If a joint account holder dies, the mode of operation makes a difference. In "Either or Survivor" operation, the surviving holder can continue to use the account. In "Joint" operation, the access is blocked until legal formalities are met. It is advisable to check nomination and confirm documentation so that funds are not stuck.](https://images.moneycontrol.com/static-mcnews/2025/07/20250720061432_6-378x213.jpg "5. Plan for what will happen if a holder dies If a joint account holder dies, the mode of operation makes a difference. In "Either or Survivor" operation, the surviving holder can continue to use the account. In "Joint" operation, the access is blocked until legal formalities are met. It is advisable to check nomination and confirm documentation so that funds are not stuck.")
