Joint Account: Know Rules of Joint Account

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.

Also read: A step-by-step guide to creating a Current Account UPI ID

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.

Also read: Open MSME Current Account Now


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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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