BANKING

Requirements for Opening a Joint Bank Account

Published

1 year ago

Requirements for Opening a Joint Bank Account

A joint bank account is an important consideration when you’re set to embark on a shared project with a life or business partner. It also comes in handy when you want to monitor the financial lifestyle of your kids and teach them how to manage their money.

The uses of a joint bank account are numerous, but this article will focus on the requirements all parties involved must meet to open one.

But first…

What is a Joint Bank Account?

A joint bank account is a type of bank account owned and operated by two or more persons, often called “joint account holders.” It’s popular among couples, parents and their kids, business partners or members of an association.

Requirements for Opening a Joint Bank Account

A joint bank account is typically designed for people with shared financial interests who want equal access and accountability to their pool of funds.

There are typically two categories of a joint bank account:

A joint savings account: Like a regular savings account, joint savings accounts are designed for savings. It enables the co-account owners to save towards a particular purpose. There’s a limit on withdrawals and a reward for consistently maintaining a healthy account balance.

A joint current account: This is also run like a regular checking account, where the co-account owners use it for daily transactions. They’re designed for daily bill payments and other household expenses and have all the benefits of a current account, such as overdrafts, limitless transactions, easy access to funds, and more.

Your relationship with your co-account holder, financial interests and aim of opening the joint account should determine the type of account you open.

How Does a Joint Bank Account Work?

Joint bank accounts function the same way as regular bank accounts, with the major difference being that they are owned and operated by two or more persons. This means both account owners have the same rights to the account as someone with a regular account. Each account holder has the right to:

Deposit and withdraw money from the account.
Hold a debit card or cheque book connected to the account.
See the account transaction history.
Use online banking services connected to the account.

Therefore, you must understand that all co-owners of a joint bank account have equal access to the account. So, you must bear that in mind before you agree to open a joint bank account.

What are the Requirements for Opening a Joint Bank Account?

The requirements for opening a joint bank account are similar to what is required for a regular account. However, in this case, all co-owners of the account will provide theirs.

Also, the requirements to open a joint bank account lie with the bank, which means they may vary according to banks. However, here are some general requirements for opening a joint bank account:

Documentation Requirement

This refers to all the documents all the co-owners of an account must provide to ensure they’re eligible to open a bank account. Here are some of them:

Account Opening Form: Both parties will fill out the account opening form and submit it to the bank. Normally, the form has sections for the first and second signatories, and in the case of more signatories to the account, provisions will be made.

Proof of Identification: Each co-owner of the joint account will provide a valid means of identification, such as a national ID card, voter’s card, driver’s license and international passport.

Proof of Address: If the co-account owners are couples or parents and their kids, both parties can provide the same proof of address. However, if they’re unrelated, each party must provide a valid proof of address, which can be a public utility receipt such as a tax clearance certificate (TCC), PHCN bills, etc. The receipt must bear the current address of all co-account holders.

Specimen Signature Cards: Each account owner must submit a duly completed specimen signature card, which enables the bank to maintain security and prevent unauthorized access to the account. This is especially important when the joint bank account is a checking account.

Passport Photographs: Each party will provide two clear and recent passport-sized photographs with their names and signature on the reverse side.

Reference Forms: Two independent and satisfactory references must be submitted. Some banks require that the referees be current account holders in their bank, with a specified minimum period of operation.

Resident Permit: This is mostly a requirement for non-Nigerians.

Fees Requirement

Like a regular account, a joint account comes with some fees the account holders must pay to maintain the account. This depends on the type of joint account opened, such as a joint savings or current account. Here are some of the fees associated with joint bank accounts:

Maintenance Fees: Like regular accounts, joint bank accounts require monthly card and account maintenance. Therefore, the fees for this maintenance will be deducted accordingly from the account.

Initial Deposit: Some banks require an initial deposit for their joint savings account.

Minimum Balance Requirement: A regular savings account needs a minimum balance to be active and keep yielding interest. The same thing applies to joint savings accounts. When this balance goes below the minimum requirement, a penalty is charged to the account holders.

Overdraft Fees: Overdrafts are allowed in joint current accounts, just as in regular current accounts. And, of course, when there’s an overdraft, the user must pay interest on the overdrawn amount.

Who Owns the Money in a Joint Bank Account?

The money in a joint bank account belongs to all the signatories to the account. Each account holder has equal access to the account and can deposit, withdraw, and transfer funds from the account.

This is an important consideration when agreeing to joint account ownership, as it doesn’t matter who makes a deposit; all parties with access to the account can withdraw from it.

Conclusion

Opening a joint bank account is straightforward, especially if you already have all the required documents. Understanding what you’re required to provide and making them available on time before starting the account opening process makes it easy for you and your co-account owner.

Hopefully, this article has provided the information you need on the requirements for opening a joint bank account.

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African Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

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Distributed by APO Group on behalf of Afreximbank.

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International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Published

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International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.

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Kazang Pay launches card acquiring service in Zambia

Published

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Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

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Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

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The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

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Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK