The Modern Rules of Account Closure | Can I Close A Joint Bank Account ?

You may already know what a joint bank account is since you are searching for the process of closing it. As the name suggests, it is a type of bank account shared by two people. These are usually created by married or unmarried couples since they can be accessed by both account holders. They can deposit or withdraw money from a joint bank account like a primary holder.

If the account is no longer needed or able to serve you well, closing it can be a financially smart idea. Here, we will be going to clear the doubt from your mind regarding ‘Can I close a joint bank account?’ However, we will be discussing several angles to make you understand it in a better fashion.

Stay tuned to know whether you can close a joint bank account and also the procedure behind it!

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Who Owns The Money in A Joint Bank Account ?

The working mechanism of joint bank accounts is almost similar to other accounts with one significant difference. You may have already guessed the difference. In this case, two account holders are there who can have full control over the funds.

The money in these accounts belongs to both of the account holders or owners. Both can withdraw money as much as they want even if he/she is not the one to deposit it. There is no distinction between the money deposited and the withdrawal made by the bank.

You must open a joint bank account with the person whom you trust completely. For instance, you can register for a joint bank account with your spouse or your business partner whom you know for several years. It’s because both of you will own the money in a joint bank account and that can get you into trouble if the other person commits some kind of fraud activity.

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Joint Bank Account Rules on Death

As the joint bank account is owned by two people, a doubt can arise in your mind regarding ‘What are the rules that I need to follow if the other person dies?’

The joint bank accounts are also divided into various subcategories depending on the state laws. But, whatever be the type, these accounts are set up with the ‘rights of survivorship.’ It means that if one account holder of a joint bank account dies, then the funds and access are passed fully to the surviving owner.

Most financial institutions offer rights of survivorship for the joint bank accounts automatically. However, it’s always better to check with the bank or institution while registering. They may have some other documents that you need to submit to ful-fill this criterion.

Moreover, in case of an account holder’s death, it’s always better to notify the bank or the financial institution with relevant proofs and documents by the surviving one. After you became the sole owner of that account, you may need to bear some tax consequences on your own.

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In A Joint Bank Account Only One Name On Check is Possible ?

For a joint bank account, you will receive only one cheque book issued by the financial authority. However, both the owner’s names will be printed on that in a chronological sequence.

For signing the checks, it depends on the mode of operation or the type of joint bank account that you have chosen.

The various modes of joint bank accounts can be operated by one or survivor, operated jointly where you both need to sign, signed, or operated by all.

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Can I Close A Joint Bank Account Without Another Owner?

Usually, banks require depositors in person while closing an account with them. But, in the case of joint bank accounts, there is no rule that both owners need to show up for closing it. It’s because both account holders have similar rights and hence can make any changes to the account.

You may need a photo ID proof, so just carry that with you. However, you may need to fill up a standard form for closing a joint bank account. In case you have already opened a new account with the bank, they will transfer all the funds to your new account and terminate the old joint account.

But, if you want to receive all the funds in cash, they may need a signature from the other person on that form as proof of their consent. Let’s now check the detailed procedure for closing a joint bank account.

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Step-by-Step Instructions For Closing A Joint Bank Account

There can be many consequences that you need to face while closing a joint bank account. If it is not done properly, you can miss payments, check bounces can happen, and many more. So, follow the below steps to carry out this process smoothly.

Step1: Withdraw money from the bank account to make it zero

You can use your ATM card to withdraw all the funds from the joint bank account so that there is no worry of funds transfer by the bank. If you don’t have that much time, you can even let your bank decide how they will transfer the funds upon account closure.

Step2: Stop automatic deductions

If there are any automatic deductions of monthly bills from that account, try to cancel that as early as possible. Ensure to check the last annual statement so that you don’t forget to cancel any kind of transactions that you had set up earlier.

Step3: Open a new account

If you already don’t have another account, open it as early as possible. This will help you to set or redirect all the payments from the new account. It may require some time so do that well ahead before closing the old account.

Step4: Close the old account

After you are all set up, follow the necessary formalities of the bank or financial institution to close the old account. They may want your ID proof or even ask you in person to close the account.

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Methods of Closing A Joint Bank Account

This depends on the bank or financial institution with which you hold the account. Some of the popular methods include –

• The online portal of the bank,
• Mails,
• Customer care executives through phone calls,
• In-person.

Check the method that your bank wants you to follow and close your joint bank account.

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Final Words !

We hope that you have found this article quite helpful and interesting. All the relevant things have been highlighted that could help you to close the joint bank account easily and smoothly.

Thanks for staying with us. For any queries or concerns, feel free to contact us.