There are two types of savings accounts. One is single saving account and the other is joint saving account. Joint savings account has two account holders and single account has only one account holder. While a joint savings account is considered beneficial in many cases, it also has some disadvantages. Today we will tell you what are the advantages and disadvantages of joint saving account.
New Delhi. Bank account has become very important in today’s time. From salary to government money also comes in the savings account. People also open savings accounts for saving.
Pradhan Mantri Jan Dhan Yojana is also being run by the government to ensure that every citizen of the country has a bank account.
Any person can open a Joint Bank Account along with a single account. Joint bank account is slightly different from single saving account.
If you want, you can open an account with your parents or husband-wife also. Apart from this, this account can also be opened with sister, brother or friend.
In a joint savings account, there are two account holders instead of one account holder. In this, two people can save together. Joint bank account is also opened for minors to avail the benefits of government schemes.
Advantages of Joint Saving Account
In this there is common financial responsibility between both the account holders. For example, if a husband and wife are saving to build a house, then to achieve this goal, both deposit money in a joint account. In this way, both of them work together as a team to achieve their financial goals.
Apart from this, it also helps in saving more and more. Actually, many times we deposit money in a savings account but withdraw it for small needs.
Whereas in a joint savings account, the amount can be withdrawn only after the approval of both the account holders. Many times a joint savings account also helps in bringing financial discipline and strengthening the financial position.
Disadvantages of Joint Saving Account
Talking about the shortcomings of joint savings account, its biggest drawback is money management. Actually, in this, money can be withdrawn from the account only when both the account holders have approval. In such a situation, if any person needs money in an emergency, he will not be able to withdraw money from the account.
Apart from this, if either of the two account holders has taken a loan, then both the account holders will be responsible for repaying it. In such a situation, it is very important to understand the risks before opening a joint savings account.
When you open this account, you should also assess the financial position of other account holders. Both the account holders have rights in this account.
In such a situation, if one person is saving more than the other and for some reason the account is closed in the future, then there is a possibility of financial loss for the first person.
