Joint account

Joint account is a bank account shared by two or more individuals. Any individual who is a member of the joint account can withdraw as well as deposit cash to the account. Usually, joint accounts are shared between close relatives or business partners.[1]

Joint accounts are often created in order to avoid probate.[2] If two individuals open a joint account and one of them dies, the other person is entitled to the remaining balance and liable for the debt of that account.[1]

A Joint Account is a temporary bank account normally being used between 2 parties entering into a transaction where 1 party needs a security for the fulfilment of the transaction and the other party has to pay the sum (deposit), being the security for the other party. Any payment from the Joint Account or return of the deposit from the joint account, will only be possible if both parties sign a joint written instruction to the bank. It is not possible that only one of the both parties gives instruction for payments of the joint account. Because (European) banks are not very interested in opening joint accounts, because they are normally used for one transaction only, there are specialised parties or companies, taking care of such accounts as trustees. A good example is "foundation Joint Account Shiptrade". This foundation is holding big deposits and payments for buyers and sellers of ships. (see www.jointaccount.nl) A joint account will normally be closed or ended after the forseen transaction has been closed and ended. Joint accounts are used in transactions were large sums of money are involved and a very usefull alternative for letters of credit or escrow accounts.