What is a joint account?
A joint account is one in which the title of the account is in the name of two or more persons. This account may be operated by any of the parties as agreed to at the time of opening of the account. The forms in which the account may be operated are: a) Jointly b) Either or survivor c) Former or survivor Joint accounts can be opened in respect of both running accounts like Savings Account or time account like Fixed Deposit Account.
Several states offer employers the option to save unemployment taxes by forming a joint account (also referred to as a common rate group ). In a joint account, two or more entities combine their experience for rating purposes. When employers form a joint account, the main goal is to achieve a lower overall tax rate for the members. In some instances, one member’s tax rate might increase, but the combined experience of all members will result in a group tax savings. Most states require the entities involved in the joint account to have common ownership.
The ShareBuilder joint account is a brokerage account for two people. The account owners are joint tenants with rights of survivorship—this means that when one of the account owners dies, sole ownership will be transferred to the remaining account owner. For more information on the tax implications of this type of account, please consult a financial advisor. To open a joint ShareBuilder account, both applicants must have reached the age of majority for their respective state of residence.
A joint account is a good option for those individuals who want or need more than one person authorized to use a bank account. Generally speaking, when you open a new checking or savings account at a bank or credit union your name will appear on the account and only your name will appear on the account. This is fine for some people, but there are others, especially married couples, who need more than that one name on the account. For those individuals a joint account is the way to go. A joint account does not have to be limited to married couples. Many businesses will use a joint account. Parents who have adult children may wish to open a joint account. Some community agencies may wish to have joint accounts as well. Once a joint account is opened any person listed on the account may make deposits into the account; they may write checks on the account and they can withdraw money from the account. In some cases, however, the joint account can be restricted so that it takes two signature
Whenever a bank opens a new savings or checking account for a customer, his or her name is listed as the sole authorized user of that account. If two or more individuals want to share access to the same account, however, the result is called a ‘joint account’. Any one of the parties listed as a joint owner of the account can make deposits, write checks or withdraw cash. In general, a joint account is opened by individuals with a close family or business relationship; parents/children, married or unmarried couples, business co-owners, etc. Some participants in a joint account can restrict access by requiring two signatures on checks or withdrawal slips. A joint account is considered to be riskier than two separate accounts, but many people find that pooling income into a common account makes bill paying easier. Married couples with dual incomes may open a joint account for routine expenses and individual accounts for other obligations. Elderly parents may consider opening a joint accoun
