Posted in Finance, Accounting and Economics Terms, Total Reads: 760
Definition: Joint Account
A bank account that is owned by two or more individuals is known as a joint account. All the owners equally share the rights, facilities and liabilities of the account. They can withdraw from the account or deposit into the account individually. But in case of any changes in the details of the account or to take a decision about the account, the consent of all owners is required.
A joint account is generally formed between family members or close relatives or between business partners. This is mostly to avoid probate that means in case one of the account holders dies, the other account holders are responsible for the account honoring the remaining balance and liabilities related to the account.
Similarly, in case of any legal action against the account, all the owners will be equally considered for processing of the investigation.