JOINT ACCOUNT

BY GROUP 1
THIS PRESENTATION AIMS TO ANSWER THE
FOLLOWING QUESTIONS:

 WHAT IS A JOINT ACCOUNT?

 HOW DOES A JOINT ACCOUNT WORK?
 BENEFITS OF JOINT ACCOUNT
 ARE THERE PITFALLS IN A JOINT ACCOUNT?
WHAT ARE THEY?
 HOW TO OPEN A JOINT ACCOUNT?
WHAT IS A JOINT ACCOUNT?

 A joint account is a bank or brokerage account shared

between two or more individuals. Joint accounts are most
likely to be used by relatives, couples, or business partners
who have a level of familiarity and trust with each other.
 A joint account functions like a standard account, such as a
checking or savings account, and allows anyone named on
the account to access its funds. All owners can withdraw
cash, write checks and make online payments.
HOW DOES A JOINT ACCOUNT WORK?

 Joint accounts work just like regular accounts, except they can have
two or more authorized users. Joint accounts can be established
permanently, such as an account for a couple into which their salaries
are deposited. The account may also be temporary, such as an account
between two parties who are contributing funds in the short term.
 Bank accounts held jointly between two parties may be titled with an
"and" or an "or" between the account holders' names. If the account is
listed as an "and" account, then both/all parties must sign to access
the funds. If it is an "or" account, only one party must sign .
 BENENEFITS OF A JOINT ACCOUNT?
 Joint accounts can be helpful in their holders and provide several benefits. Many
funds require minimum balances, particularly if the holder wants to access the
benefits of a specific account type. By pooling their money, two people can bypass
this requirement and reap the benefits of the account.
 Opening a joint account may also be helpful to newer couples who are combining
their finances. Couples may find it easier to have a single account into which they can
deposit their paychecks and make payments for their rent or mortgage, bills, or other
joint debts.
 A senior may find it helpful to add one of their children or another authorized user to
their accounts to pay bills and do routine banking on their behalf if and when they
are not able to do so on their own.
 ARE THERE PITFALLS IN A JOINT
ACCOUNT? WHAT ARE THEY?
 Joint accounts can cause problems, however, because they generally provide
all parties unlimited access to the funds. Thus, if one spouse has difficulty
controlling their spending habits, this may affect the other spouse, who may
be more frugal. The frugal spouse cannot challenge the withdrawals or
transactions of the other spouse with the bank because they are listed as a
joint account holder.
 Another thing to remember with joint accounts is that all parties with access
are responsible for any fees. If your husband runs up your joint credit card,
you are equally responsible for paying it back. Similarly, if your joint checking
account goes into overdraft, you are liable for a negative balance.
 HOW TO OPEN A JOINT ACCOUNT?
 Opening a joint account is as simple as opening up a single account. Both parties
should be present at the bank when the account is open—whether that's a deposit
account or another product like a mortgage or loan. For credit cards, adding a
secondary or authorized user is akin to opening a joint account. In most cases, this
requires the signature of the second party.
 Opening a joint checking account is very similar to opening an individual
checking account. Select "joint account" when you fill out your application or, after you
fill in one person's information, choose to add a co-applicant.
 Both people may need their Social Security number, birthdate, mailing address, photo
ID, and information for the accounts you plan to use to fund your new account.
Another option is to add one partner to the other partner's existing account.
SOURCE OF INFORMATION:

INVESTOPEDIA.COM
 ACTIVITY TIME!
WRITE T IF THE ANSWER IS TRUE AND F IS THE ANSWER IS FALSE
1. A JOINT ACCOUNT HAS ONLY ONE OWNER.
2. OPENING A JOINT ACCOUNT IS AS SIMPLE AS OPENING UP A SINGLE
ACCOUNT.
3. JOINT ACCOUNTS ARE MOST LIKELY USED BY STUDENTS.
4. ONE PERSON MAY NEED THEIR SOCIAL SECURITY NUMBER IN OPENING A
JOINT ACCOUNT.
5. JOINT ACCOUNT CAN ALSO CAUSE HARM AND PROBLEMS.
 ACTIVITY TIME!
WRITE T IF THE ANSWER IS TRUE AND F IS THE ANSWER IS FALSE
6. ALL OWNERS CAN WITHDRAW CASH IN A JOINT ACCOUNT.
7. JOINT ACCOUNT CAN BE ESTABLISHED PERMANENTLY OR TEMPORARY.
8. ALL PARTIES WITH ACCESS ARE RESPONSIBLE FOR ANY FEES.
9. BANK ACCOUNTS HELD JOINTLY BETWEEN TWO PARTIES MAY BE TITLED
WITH AN “AND” OR AN “OR” BETWEEN THE ACCOUNT HOLDERS’ NAMES.
10. A JOINT ACCOUNT FUNCTIONS LIKE A SUPER ACCOUNT.
 ANSWERS!
1. F
2. T 9. T
3. F 10. F
4. F
5. T
6. T
7. T
8. T