Any individual shall open a savings account fulfilling certain requirements. Similarly, different options are available for Non-resident Indians as well. In cases, joint accounts are shared between close relatives or business partners. A joint account is a bank account shared by two or more individuals. Any individual who is a member of the joint account can withdraw from the account and deposit to it. Various options exist for operating the account. They are as follows:
- Jointly by A and B – Both A and B will have to sign for withdrawals and other operations. For example, high-value transactions in a partnership firm may require the joint signature of two or more partners.
- Either or Survivor – Either of them can operate the account individually. After the demise of one, the other can operate it as a survivor. This is the normal option selected by families.
- Former or Survivor – The first person mentioned as account-holder will operate it during his / her lifetime. Thereafter, the other can operate. This option is often selected by a parent while opening an account with the son/daughter.
- Latter or Survivor – The second person mentioned as account-holder will operate it during his / her lifetime. Thereafter, the other can operate.
While opening the account, the operating option needs to be clearly specified.