Joint Savings Account

Understand what joint saving account is and how to open one
Joint Savings Account
3 min

Joint savings accounts offer a unique opportunity for individuals to pool their financial resources and work towards common goals. Whether it's couples planning for their future, family members managing household expenses, or business partners collaborating on ventures, joint savings accounts provide a platform for shared financial responsibility and mutual benefit.

Also Read: PPF Account for Minors

What is a joint savings account and how do they work?

A joint savings account is a type of bank account that is owned and operated by two or more individuals. Typically, joint accounts are owned by spouses, business partners, or family members. It serves as a convenient way to simplify financial management, pool savings together, and meet shared savings goals.

A joint account works like any other regular bank account, where funds are kept safely and earn interest at the applicable rates. However, in a joint account, each account holder has equal access and rights on the funds in the account and shares equal responsibility for debts and liabilities on the account.

While a joint savings account offers easy access and liquidity for shared expenses, it might not always provide the best returns for long-term saving goals. Here's where Fixed Deposits (FDs) come into play.

If you and your partner have a long-term savings goal, like a down payment on a house or a child's education, consider booking an FD. FDs offer higher interest rates compared to savings accounts, helping your money grow faster over time.

Pros of joint savings account

  • Easy management of finances: Joint savings account simplify financial management for couples and family members. Both account holders have equal access to the account which makes reviewing the balance, making payments, and depositing funds easy. This also simplifies the process of tracking joint expenses and savings.
  • Convenience: Joint accounts are especially convenient for couples combining finances to run the household. Pay checks can be deposited into a single account to pay for shared expenses like rent, utility, and mortgage. This convenient approach eliminates the need for frequent transfers between individual accounts.
  • Improved financial planning: Joint savings account can help better plan your finances. Both account holders can jointly create a budget, allocate funds for expenses, and identify savings avenues.
  • Maximise savings: You can also potentially save more with a joint bank account. Combining the income and contributions from two or more people can result in a larger overall balance, meaning greater interest income. Better savings can help you reach your collective savings goals faster.

Cons of joint savings account

  • Possible conflict: Joint savings account can result in disagreements and conflicts among the joint account holders. Such conflicts may arise due to differing financial priorities, spending habits, or savings goals. Lack of financial compatibility can result in frequent disagreements.
  • Unequal contributions and withdrawals: Often, one account holder contributes or withdraws more than the other, resulting in a sense of inequality.
  • Liability and legal issues: Both account holders share equal responsibility for debts and overdrafts incurred on the joint account. Moreover, if legal action is taken against one account holder and the account is frozen, the other holder also loses access to the saved funds.

Also Read: How to Link Aadhaar with EPF

How to open a joint bank account

Depending on your preferences, you can open a joint savings account offline or online. To open one online, you can visit the bank’s website and select the type of account you wish to open. Next, fill up the online application form, accept the terms and conditions, and select a mode of transferring funds into the account. Scan and upload the required KYC documents of all the joint account holders.

Alternatively, you can visit the nearest bank branch to open a joint bank account. Ask for the joint account form and fill-up it up with all necessary details. Next, submit copies of valid identity and address proof documents for each of the account holders to open your joint savings account.

Note: It is the general process, and the specific process might differ depending on the bank you are opening your account with.

Things to know when you open a joint bank account

  • Shared responsibility: Financial responsibility for a joint account is shared among the account holders. Therefore, all account holders are responsible for overdrafts and debts on the account, regardless of who spent the funds.
  • Termination: Just like opening a joint bank account requires consent from all parties, so does termination. To terminate your joint account, you will need the consent of all other co-account holders.

Also Read: How to Check PPF Account Balance

How to close a joint bank account

To close a joint account, you must follow these steps:

  • Discuss the matter with the other account holders since collective consent is necessary when closing a joint bank account.
  • Withdraw the funds available in the joint savings account. Also discuss the break-down of funds among the joint holders to avoid ambiguity.
  • To close the account, most banks require written authorisation from all joint account holders. Some may allow you to close it without written authorisation from other co-account holders. Talk to a bank representative and understand the bank’s policy first.


Joint savings accounts serve as a valuable tool for individuals seeking to collaborate on financial matters and achieve common goals. By leveraging shared resources, enhancing financial management, and strengthening relationships, joint savings accounts help account holders to navigate life's financial journey together, one step at a time.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.