Fixed deposits are an ideal investment tool for risk-averse investors and come in different forms, like cumulative FDs or non-cumulative FDs. Not only that, they offer you the choice of applying individually or jointly.


A joint fixed deposit is a type of fixed deposit that allows up to three people to open it together. While the rules and terms of individual FD are simple and common, there are a few joint fixed deposit rules that you should know. 

Read on to learn more about the joint fixed deposit rules to make the most of your investment.

Joint Fixed Deposit Rules You Must Know

Being aware of the joint account FD rules ensures that you make decisions that benefit your financial health. These include:

  • Minimum Deposit

Like other accounts, the joint FD account also has a minimum deposit rule that you need to meet to open the account. The minimum amount varies with each issuer. You can check this under the issuer joint account rules section or by contacting the issuer. 

  • Withdrawal

The joint FD withdrawal rules depend on the type of the account, which includes the ‘Either or Survivor’ or the ‘Former or Survivor’ account. 


Both the account holders can operate and withdraw from the former type of joint fixed deposit. On the other hand, the secondary holder can withdraw from the latter in case of the demise of the first holder.

How Does Joint FD Withdrawal in Case of ‘Either or Survivor’ Work?

If your FD operates under the ‘Either or Survivor’ FD rules, one does not require the signatures of both depositors for redemption at maturity. In the event of the demise of the first holder, the surviving holder can continue the investment. 


Once the deposit matures, they will receive the final balance with the interest accrued. Upon the survivor’s demise, the mentioned nominees gain access to the funds.

How Does Joint FD Withdrawal in Case of ‘Former or Survivor’ Work?

In the ‘Former or Survivor’ FD account, the secondary account holder can only access funds on the demise of the primary holder. However, to access the account, they will need to submit the death certificate of the primary account holder and fulfill other formalities.


In the event of the demise of the survivor before maturity, only the former can solely operate the account. On the demise of the former, in this case, legal representatives of the former can access the funds for withdrawal on maturity.

Advantages of Joint Fixed Deposits

  • Easy Withdrawal for All Account Holders

All account holders can access the maturity amount or make a premature withdrawal. It is possible even if the members are located in different cities.

  • Easy Financial Review for Family 

Having a joint fixed deposit makes it easier for you to keep tabs on your finances and your family members.

  • Lesser Financial Distress

All account holders have access to the information regarding their investment amount and the expected returns.

Disadvantages of Joint Fixed Deposits

  • No Availability of Loan for FDs with a Minor

You cannot avail a loan against your joint FD if it is with a minor.

  • Limited Access to Funds for Seizure

Say one account holder commits a crime that leads to the seizure of their accounts. The authorities may limit the other account holder’s access to funds in the seized joint fixed deposit.

Joint FD Premature Withdrawal Rules

Premature withdrawal of an FD is when you withdraw your funds before the completion of your tenor, and the rules for this are different. The joint FD withdrawal rules state that one needs the signatures of all the depositors to carry out a premature withdrawal. 


However, the rules require the signature of the heir of the deceased along with the signature of the surviving account holder. The account holders can modify these terms when they open the joint fixed deposit.

Who Receives the Tax Benefits from a Joint Fixed Deposit?

The income tax benefits on joint fixed deposits apply only to primary account holders and not the secondary account holders. Additionally, for TDS, the banks will ask for the PAN information of the primary account holder.

Joint FD Rules for Transferring Accounts

Transferring joint fixed deposits from one branch to another becomes a necessity if there is a change in address.


All you have to do is contact the manager of the previous branch for approval for transfer. Once the manager approves your request and completes the required procedures, the bank will transfer your joint FD to the new branch.


Securing the best FD interest rates is crucial in ensuring that you get the best returns. With attractive FD offers for sole and joint account holders from leading issuers, you can do just that and enjoy high FD rates, too. 


Start your investment journey on Bajaj Markets. With simple processes, you can get some of the best FD interest rates from leading issuers.


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be a source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, trade names, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on Joint Fixed Deposit Rules

What are the rules for a joint FD in the RBI?

As per RBI guidelines, all the joint FD account holders need to provide a withdrawal mandate to the bank. In terms of taxation, the primary holder can claim tax deductions under Section 80C of the Income Tax Act of 1961.

How does a joint FD account work?

A joint fixed deposit allows up to three depositors to invest in this account. The primary account holders receive the interest income as well as tax liability.

Can one person withdraw from a joint account?

The investments made to a joint fixed deposit belong to all the account holders. Hence, all account holders can withdraw the money from the FD at will, depending on the respective operating instructions.

Is it possible for all account holders to operate joint fixed deposit accounts?

Yes, depending on the operating procedure agreed upon, all account holders can operate the joint fixed deposits.

What is the joint account fixed deposit rule for payment of tax?

The tax liability for a joint fixed deposit account falls on the primary account holder.

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