All About Joint Accounts And when do you apply for it?

Sometimes we want to balance our budget and expenses or share them with someone else like our spouse. Sometimes we want to pull our resources with another person(s) in order to save up and in these cases the best option is to open a joint account

Also read: how to open a bank account?

What is a joint account?

It is a bank account shared by two or more people with the administrative fees divided between all parties. Any transactions can be done by either one or all parties.

Joint account details:

They are like regular accounts but are opened for several reasons such as:

• If a couple want to pool their resources.
• If a parent wishes to open an account for his children. At any time or at the time of death the account is divided among the children according to Sharia law.

A joint account can have any banking services added:

• Deposits and certificates
• It can be a saving or a current account
• Credit card
• Loans

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Joint accounts’ permissions:

In regular accounts one person -the account owner- is responsible for the account. They’re the ones who have their signature on the accounts, they have the right to withdraw, deposit, and ask for any financial transactions on the account. 

Joint accounts on the other hand can be one of two:

• Single: only one person has the right to approve any financial transactions on the account.
• Collective: all or some of the account owners according to agreement have the right to approve any financial transactions on the account.

Advantages of having a joint account:

• For spouses: it makes it easier to pull their financial resources and pay things like rent, bills, loans, and add to emergency funds. They can also open such an account for their children.
• For the elderly: if they have a person they trust they can share the burden of their finances. This way they can pay all their bills without having to worry about remembering their due date.
• Joint accounts do not prevent you from having another account in your name only.

More banking tips: can you have multiple accounts in the same bank?