Definition of Joint account:
A joint account is a bank or brokerage account shared between two or more individuals. Joint accounts are most likely to be used by relatives, couples, or business partners who have a level of familiarity and trust with each other. It typically allows anyone named on the account to access funds within it. There are multiple ways accounts can be established, each with its own implications for how money or assets can be accessed within the account or how the contents of the account are handled after one of the joint holders passes away.
Joint accounts work just like regular accounts, except they can have two or more authorized users. Joint accounts can be established on a permanent basis, such as an account for a couple into which their salaries are deposited. The account may also be temporary, such as an account between two parties who are contributing funds in the short term.
Bank account in the name of two or more individuals (account owners) who jointly (equally) share its concomitant rights and liabilities. Joint holders of an account are regarded in law as together making up the owner. Any action against them (pertaining to that account) is made against jointly and not individually (severally). Two types of joint accounts are: (1) Joint-tenancy account (owned usually by a married couple) in which either owner may individually exercise full rights to make deposits or withdrawals on his or her signatures. In case of either owners death, the survivor automatically takes the sole control of account assets without probate. (2) Tenants-in-common account (usually owned by two or more business partners or directors) in which signatures of all owners are required to exercise certain rights such as making withdrawals. In case of one or more owners death the other owner(s) may take control of account assets only in accordance with the terms of agreement entered between them before such eventuality. A company account operated by two or more signatories as a means of accounting control or security is not a joint account in the legal sense. See also jointly and severally.
How to use Joint account in a sentence?
- You may want to open a joint account with someone you trust so that someone can always have access to it.
- A joint account is a bank or brokerage account shared by two or more individuals.
- Transactions conducted through a joint account may require the signature of all parties or just one.
- Joint account holders have equal access to funds but also share equal responsibility for any fees or charges incurred.
- My bonus was paid into the joint account last week and my wife already spent most of the money to pay bills.
- One of the perks of getting married to my wife is the ability for us to start a joint account for our checking needs, since now we can both direct deposit our paychecks right into the account, and both draw the funds when we need it.
Meaning of Joint account & Joint account Definition