What is a Joint Account in Bank? Learn its Benefits
What is a Joint Account in banking terms? Learn its Benefits
Having a Joint Bank Account is a great option for people who want to share financial responsibilities with others. Unlike individual bank accounts, these are shared between two or more people, where individuals can access the account and perform transactions. This blog will help explain a Joint Bank Account and its benefits.
What is a Joint Account?
It is an Account owned and operated by two or more people. All Account holders have equal ownership with the same access and rights to the funds held in the Account. These Accounts are particularly suited for couples, family members and business partners who want to share financial responsibility. For instance, ICICI Bank Family Banking is a product that allows family members to pool all their respective accounts under one Family Savings Account or Family ID.
The Benefits of Joint Bank Accounts:
One of the main benefits of a joint account is that it makes managing collective finances easier. With two or more people contributing to the account, paying bills, saving for common goals, and making joint purchases becomes easier. For couples, these accounts are especially useful as they can divide their expenses such as rent, utilities, and groceries.
2. Avoiding Probate -
Another advantage of a joint account is that it helps to avoid probate: the judicial process where a will is "proved" in a court of law and declared a valid public document that holds as the last testament of the deceased, or whereby the estate is settled according to the laws of the state at the time of death in the absence of a legal will.
When an individual dies, their assets are distributed according to their will or estate plan. However, if the individual has a joint account, the surviving account holder automatically becomes the sole owner of the account, and the funds do not have to go through long-drawn probate. This means the money in the account can be accessed immediately by the surviving account holder without any delay.
A joint account also provides great convenience to all account holders. Each individual has access to the account, and transactions can be made promptly and easily as a single account. This is particularly useful in case either account holder is unavailable, and the other can handle transactions on their behalf.
Joint accounts also offer the benefit of saving more money together. With two or more people contributing to the joint account, saving for common goals such as holidays, weddings, and other big purchases naturally becomes easier. The account can also set aside money for emergencies or unexpected expenses. This makes it an excellent tool for financial planning as well.
A joint account can help people plan their finances better. With both (or more) account holders having access to the account, it becomes easier to track collective expenses and identify areas where money can be saved. This can be particularly useful for couples who are looking to save for a down payment on a prospective home purchase or planning for their retirement.
6. Better Credit Score -
Amazingly, joint accounts can also improve the credit score of all account holders. With regular deposits and timely payments made from the account, it becomes easier to build a good credit history. This is particularly useful for people who are looking to take out a joint loan in the future.
Family Banking from ICICI Bank lets individual family members group all their respective accounts under one Family Savings Account or Family ID. If you’re looking to open a joint account with family members: you can go for a Savings Account or open a Fixed and/or Recurring Deposit account.
By doing this, you can enjoy the benefits mentioned above: anytime, anywhere. With a joint Family Savings Account, all family members will be able to carry out transactions like paying bills, making deposits, raising requests and doing a whole lot of other things. These can be done through all our available channels, such as internet banking, mobile banking and customer care.
If you’re ready to begin banking with your near and dear ones, our instant account opening facility will have your family account up and running in no time. All account holders can enjoy great offers and discounts when they pay securely through their account debit card, earn reward points and be able to transact at over 15,000 ATMs across India.
Not just this, there are a lot of other benefits in store for families that bank together.
The entire family can enjoy the advantages of special services from ICICI Bank, such as Privilege Banking, Wealth Management and Private Banking.
What’s more, the minimum required balance can be maintained through either one or more of the accounts held by family members.
The monthly average balance to be maintained is even lower at the family level. Members don’t need to maintain minimum balance individually.
The entire family can access all exclusive offers and benefits of any category of Family Accounts. This invoices Savings, Good Privilege, Silver, Titanium Privilege, Private Banking and Wealth Management.
A joint bank account like the Family Account at ICICI Bank is a convenient collective tool for couples, family members, and business partners who want to share financial responsibility and grow their wealth together. If you’re thinking of opening a family account, say hello to easier management of finances, convenience, more savings, better financial planning, and improved credit scores. Ensure all account holders are aware of their responsibilities and clearly understand how the account will be used. This will make for a secure and convenient way to manage finances. Visit your nearest ICICI Bank with all account holders to be, or get in touch with us to open a Family Banking Account.
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