Definition
Joint Account and Survivorship
A joint account is held by two or more people, with operating and survivorship rules that determine access and inheritance.
A joint account is owned by more than one person, with operating mandates such as 'either or survivor', 'former or survivor', 'jointly', or 'anyone or survivor' that decide who can transact and what happens on a holder's death. The 'either or survivor' mode lets either holder operate the account and passes the balance to the survivor.
For couples and families, joint accounts simplify shared finances and ensure the survivor can access funds without legal delays. A nomination should still be added, as it works alongside survivorship to streamline claims.
Understand the mandate you choose, because it affects both day-to-day operation and what happens to the money if one holder dies — picking the right mode avoids disputes and access problems later.
Related terms
- Savings Account InterestSavings account interest is the modest return banks pay on the balance in your savings account, calculated on daily balances.
- Wealth and Estate PlanningEstate planning is arranging in advance how your assets will be managed and distributed during your life and after your death.
- NominationNomination is the act of naming a person to receive the policy proceeds on the policyholder's death, without transferring ownership of the policy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.