Joint Bank Accounts are bank accounts jointly operated by two or more persons for the purpose of convenience or control. Such bank accounts are generally operated by associations, cooperatives, couples, civil partners or any other group of persons for the purpose of convenience or joint control of funds.
Opening a joint bank account is not different from the ways to open other types of bank accounts, the parties to the accounts will only need to present separate documentations and fill out the bank account opening documents for proper KYC.
The mode of operating a joint bank account is however differ from the way other bank accounts are being operated because of joint ownership, joint management and joint control. The mode of operations need to be discussed and agreed among the parties involved in a joint account before the account is opened to avoid friction and misunderstanding.
Here are the different types of operational arrangements (Mandates) for joint bank accounts.
- Jointly Operated – A Joint Bank Account with jointly operated mandate will have all signatories to the account instructing the bank together for any activity on the account. No individual among the signatories to the bank account can instruct the bank alone for withdrawals and any other transactions on the account.
- Operated by Former or Survival – This kind of mandate on a Joint Bank Account refers to that the account to be operated by the first signatory alone until his/her demise and will be operated by the second signatory upon the demise of the first signatory. The Former may be more than one and may have varying mandates.
- Operated by either Holder or Survival – A Joint Bank Account with this mandate refers to a situation were either the account holder or survival can instruct the bank individually and in addition to the account can be operated by any of the other party upon the demise of either of them. Mode of account and mandate must have been defined from the onset.
- Operated by Later or Survival – A Joint Bank Account with this mandate refer to a situation where the account holder has added two other signatories to the account. On the demise of the original account holder, the Later takes over the operation of the account and on the demise of the Later, the Survival takes over the management of the account. It is however important to let the bank know if there are limits to either the Later or the Survival.
In addition to the operation types as listed above, the parties to the accounts can also have limits associated with a particular signatory. Limits such as withdrawal limits, mandate changing limits, online transaction limits, bank card transaction limits and more.
For Associations, Cooperative Societies and all other joint bodies. The mandates are about same with that of two or more persons but the account name is where the difference is. The account name and registration documents tells what type of account it is but joint operation mode can be twisted to fit the needs.
