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Joint Bank Account Rules: A small mistake with a joint bank account can leave you bankrupt. Do you know the meaning of "Either or Survivor"? If not, learn about it thoroughly in this article before opening an account.

Joint Bank Account Rules: Nowadays, most couples prefer to open a joint bank account to manage household expenses and children's fees. As simple and sensible as it sounds, its rules can be quite complex. Signing it without thinking can prove costly later. If you're opening an account with your partner, be sure to consider these points.

Joint Bank Account: Do you know the meaning of "Either or Survivor"?

Most banks offer the option of "Either or Survivor" in joint accounts. This means that neither partner's permission is required to withdraw or transfer money from the account. Either partner can withdraw the entire amount. If there's a breakdown in coordination between the two, this feature can become problematic.

Joint Bank Account: Does the money belong to both of you?

In the eyes of the bank, both of you have access to the account, but in the eyes of the law, the owner is the one whose income deposited the money. In the event of a separation or legal dispute, the court will look at who deposited the money. Having a name in the bank does not mean that you are legally a half-owner.

Joint Bank Account: Why is nomination necessary?

Many people think that if there is a joint account, why is there a need for a nominee? But if something untoward happens to both partners, the money could be stuck in the bank if there is no nominee. Having a nominee relieves the family of paperwork and allows for easier access to the money.

Joint Bank Account: Who will bear the tax liability?

The interest earned on a joint account is taxable by the person whose income is used to deposit the money. If you're keeping a large sum of money in a joint account, it's important to keep track of it to avoid notice from the Income Tax Department.

What do experts think?

Experts say it's best to use a joint account only for household expenses (bills, rent, groceries). For larger savings and investments, it's safer and easier to maintain a personal account.