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Business News/ Opinion / Online-views/  Did you know? | Banks allow you different types of joint account relationships
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Did you know? | Banks allow you different types of joint account relationships

Did you know? | Banks allow you different types of joint account relationships

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When you plan to open a savings account with a bank, you have to fill in a form. And the form gives you an option of holding the account in single name or jointly. While being a single account holder is easy to understand, the joint account part can be a bit complicated. Banks may offer different types of joint account relationships. Here are a few.

EITHER OR SURVIVOR

This kind is applicable for two individuals. Let’s say you and your spouse have a joint account with the either or survivor clause. In case one of you dies, the final balance along with interest (if applicable) in the account will be paid to the survivor. Even if there is a nomination in the account, the survivor will get the funds. The nominee gets access to fund only if both account holders die. In case there is no nomination in place, the survivor gets the funds. In case both die, the legal heirs of both the depositors will get the funds.

ANY ONE OR SURVIVOR

Let’s assume that more than two individuals are joint account holders. Here the final balance along with interest (if applicable) will be paid to the survivor in case any one or more account holders die. On death of all depositors, the nominee gets access to funds. In case there is no nomination in place, on death of one or more depositors, legal heirs of the deceased and the survivor will get funds. On death of all depositors, legal heirs of all the depositors will get the funds.

FORMER OR SURVIVOR

This is a type of joint account where only the former account holder, the first holder, can withdraw funds from the account. Once the former account holder dies only then the second account holder will be able to withdraw funds. But the second account holder will have to do some basic formalities with the bank to start withdrawing funds, such as submission of proof of death of the former account holder. On death of both depositors, the nominee gets access. In case there is no nomination and all depositors die, legal heirs of all depositors will get the money.

LATTER OR SURVIVOR

This is similar to the former or survivor; the only difference is that the second account holder can operate the account and withdraw the funds. Only when the latter dies will the survivor have access to funds. Here, too, on death of both depositors, the nominee will get access to funds. And if there is no nominee, the legal heirs of all depositors would get the money.

—Bindisha Sarang

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Published: 06 Apr 2011, 08:54 PM IST
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