A joint account is a bank account that allows two or more people to bank in one account. Couples, organizations, self-help groups, and others are examples of groups that can open joint bank accounts. Usually, the accounts are necessary when people share a common source of revenue or contribute money to one pool. Instead of keeping the funds in their houses, they can open one bank account and keep money there. You will know how to transfer money from joint account to individual account shortly.
Joint accounts are important because it is not wise to trust a single person to keep funds for you. You might have very high trust in the given person, but people can change, and the person you thought could not steal from you vanishes into thin air with your funds. All members don’t need to be present when one is withdrawing funds.
Usually, if a group has more than three people, some financial companies require that you choose at least three trusted people to open the account. At least there is a high possibility that even if one of the members shows some betraying behaviour, the others can easily discourage the person from doing the unthinkable. That is why the chosen representatives should have the highest level of dignity. However, most financial companies have no limits on the number of people who can open an account.
The Method To Open A Joint Account
Opening a joint account is not that different from the normal process of opening an individual’s one. For your information, you can quickly get a free online checking account with no opening deposit or credit check from various financial companies. Online account opening is fast and convenient. You need to provide all the needed information, and you are all set.
Before opening, you should do the following:
- Study various accounts to find out the most suitable one
- Gather all the necessary information needed to open an account
- Decide how to open it (either online or at a physical branch)
You require various things to get started. They include the following:
- Identification for all partners. Official identification documents include state ID, driver’s license, or passport.
- Personal details for all partners, such as Social Security number, date of birth, and current address.
- Money to deposit at the opening allows you to begin enjoying the account benefits immediately. You can even transfer money using the routing number and account number from a different bank account to your joint account.
When opening either online or at a brick-and-mortar branch, you will need to select a joint account. Once you have provided all your details, you wait for confirmation to enjoy various features. If you open a checking account, all the holders will receive checks and debit cards to aid various transactions.
Process Of A Joint Account
The operation of a joint account is a bit different from an ordinary one. First of all, the joint one has more than one owner. That means every partner keenly checks expenses. Every holder can
- Withdraw and make deposits
- See the account’s activity
- Have their debit card
- Have checkbooks to write checks. The checks have all the names of the account holders.
- Every owner can create a profile to log in online.
Advantages Of A Joint Account
Various advantages come with a joint account. They include the following:
- Pay shared bills, such as a mortgage, rent, or utility bills
- Buy shared items, such as food
- Create an elaborate budget and keep track of everybody’s spending
- Contribute to various financial goals
- Deposit each other’s checks
Way To Send Money With A Joint Bank Account
As I mentioned earlier, any account member can send money using a joint account, among other transactions. If you are sending money, you will navigate to the money transfer section, then initiate the transfer accordingly.
When transferring money to someone else’s bank account, you will need their details, such as the account number and full names. That is if you are sending money to a person from your branch. As I mentioned earlier, when sending money to someone from a different bank, you will require the routing and account numbers.
Transfer Money From Joint Account To Individual Account – The Procedure
You may need to transfer money from a joint to a single account. Maybe you want to close the joint account and move that money to one holder’s account under various agreements. In such a case, you can visit all your branch and request any cashiers to assist you in the process. You then provide the details of where you want the money to go. If transferring money to an account within the same institution, then the transfer will be easy.
You can also transfer the funds to another bank, although it may take several days. Alternatively, you can transfer funds online, whereby one of the holders can log in and initiate a transfer. Alternatively, any member can write a check and deposit it in the account they intend to transfer the money to. A check may take several days to process, but the funds will eventually reflect in the account.
Another way you can transfer money from the joint account to an individual account is by withdrawing money at an ATM with a debit card, then depositing the cash in the individual account. That is an indirect way, but it can still work. You may have an ATM daily withdrawal limit if you have a lot of funds. You can withdraw and deposit in bits as well.
Some debit cards allow you to manage them in an app. You can pay bills, send money, and so much more. If your debit card is of that nature, you can use it to move money to the individual’s account. That is the same way you can transfer money from a prepaid card to a bank account. Online transfers are easy to carry out anywhere and anytime. Once you have transferred all the money from the account, you can close it.
A joint account is a particular type of bank account opened by more than one person. It may consist of two, three, four, or more people as there are no restrictions on the number of people who can open a joint account. Every partner can deposit and withdraw money, or write checks, among other things. You can open a joint account either online or at a branch and close it anytime you do not need it.