Account Holder

Personal current accounts (PCA) is common, in terms of, modern life because 

• It allows consumers to get payments in the form of wages and benefits. 

• It allows payments to be made to others through debit cards and planned methods. 

• It can be used to hold the balance. 

• It offers a line of credit through overdrafts.

Banking and non-banking sectors require the user to open a new bank account which keeps a record of all the transactions related to them. 

In the case of joint, there can be two or more owners and each owner has full right to withdraw, manage, and deposit funds. Some banks label one of the holders as primary.

Once it is established, the owners can close the account entirely.

Hence, it is necessary to have complete trust in another person. 

If one of the parties dies, the right of survivorship can be used by the others, who get an equal portion from the funds deposited.

If there are only two people involved, the surviving person gets 100 percent of the funds. 

Benefits

It has many benefits as it unifies household finance, simplifies the payment of shared bills, and makes it easy to share funds. 

Tenancy in common

There can be regulations where the account operates as per tenancy in common where if the owner passes away; the part of share is passed to their estate. 

In case, the surviving member presents a copy of the decedent’s death certificate to their bank, it can allow the bank to re-establish the account in the survivors’ name. 

Credit card

The credit card for a joint account will have the card in the name of all the involved parties but the account holder is the individual who is liable for all the debts and fees incurred on the credit or debit card.

In case the card is shared by family members, the cardholders will have their card where they share the credit limit but the account holder signs the agreement with the credit provider to pay back the dues. 

Drawbacks

It exposes all the involved parties to the actions of one and complicates tax filing at the end of the financial year and divorce proceedings.