Joint savings account and Power of attorney

POSTED BY amar ante ON November 2, 2012 10:23 am COMMENTS (2)

I want to open joint savings account of parents (Both senior citizen) in SBI/IDBI, so that father’s money can be deposited in FD. They do not have any source of income now. Since both of them are illiterate to financial and banking procedures, and also of not good health, Shall I become the third account holder of their savings and FD account? Or shall I become power of attorney to operate their accounts? Since I am in highest tax bracket as of now i don’t want any tax implications. How to manage all this? What are its implications? Please help.

2 replies on this article “Joint savings account and Power of attorney”

  1. Dear Amar, you may open a joint 3 in one joint account but as both parents are illiterate, please check with the abk for the exact rules & mode of operation.

    Please do avail a PAN Card for both parents to save TDS.

    You ‘ll require PAN for both once FDs are there in their names.

    thanks

    Ashal

  2. Yes, I think its a better option to make it a Joint account with all 3 people , so that in future you do not have issues like claiming the bank accounts also . Make your father the primary holder , but let everyone have permission to deposit and withdraw money .

    Manish

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