A joint account, is a current account held jointly, where the consent of all the account holders is required to carry out any transactions. However, with this account type, types of transaction and limits that do not require the signature of all account holders can be defined. In addition, the proportion of account holders that need to sign can be set, based on the importance of the transctions. It is called a joint account because the consent of all account holders is required to use it, and it is used when account holders have the same interests. For example, in the business world, or in inheritances cases with several heirs, or more generally in circumstances where the consensus of everyone involved is necessary. Although opening this type of account assumes there is a level of trust between the account holders, they will still have the assurance that, in case of discrepancies, transactions can be blocked, which will delay the transaction until the issue has been resolved.
In every other respect and as we have mentioned, this type of account works like a current account: a product for earning income, withdrawing cash, making payments, paying in cheques, making transfers, receiving direct debits, etc.
Joint account and joint and several account
Both accounts are joint accounts, but unlike the joint and several (or separate) current account, where any account holder may exercise any right attached to the account (such as early cancellation, modifying any credit or debit order, or confirming a change of address), in the joint account, although there is more than one account holder and all account holders have total freedom to deposit money or check any account activity, they will need the consent of all the account holders to carry out any transaction that involves money leaving the account.
For this reason, the joint and several account may be shared between family members (couples who share expenses, etc.), and the joint account will be more suitable for business transactions, or more generally in circumstances where consent is required.
In addition, both accounts allow another person to be added (in this case, an authorized person) who is not an accounthodler but who can use the account when the account holder is unable to manage it. This means they will be able to use the account without interfering with the account ownership. for this reason, authorised parties will not be liable for any debts or assets linked to the account.
How to open a joint account or account with two account holders
In general, the requirements for this type of account are the same as for opening a personal bank account. However, when it becomes effective, all the account holders will have to identify themselves with the relevant documentation. This can be done both in a branch or online.