1. How to get cash in emergency situations: Top 3 effective ways to make your bank account accessible to family

How to get cash in emergency situations: Top 3 effective ways to make your bank account accessible to family

In times of any emergency or crisis, accessing a bank account becomes difficult even for the concerned account holder's family members.

By: | Published: November 9, 2017 11:12 AM
savings account, accessing a bank account in times of crisis, making bank account is accessible, account holder,  family member, joint account, Nominee Facility, online banking Financial experts say that savings accounts are not aimed at any contingency or crisis.

Banks have laid down strict norms for operating savings and salary accounts, which is good for the account holders also as this ensures that their hard-earned money remains safe. However, in times of any emergency or crisis, accessing a bank account becomes difficult even for the concerned account holder’s family members. So, can anything be done to make sure that a bank account is accessible by someone other than the account holder during a crisis?

Financial experts say that savings accounts are not aimed at any contingency or crisis; their purpose is to develop a habit of savings among people and protecting their hard-earned money from theft, physical damage, etc. So, one shouldn’t consider saving accounts as rescuers from a crisis.

However, to avoid a situation like this, some preventive steps can be taken by the account holders, like opening a joint account.

“The precaution that account holders should take is to open savings accounts in joint names so that more than one person can access the account at any given point of time. Banks offer several options on how these accounts can be operated, viz., ‘First Holder or Survivor’ and ‘Either or Survivor.’ The former type doesn’t allow both the holders to operate the account; only the first holder can operate the account, and for couples, it is ideal to monitor their finances. In the latter option, however, both partners are allowed to operate the account,” says Rachit Chawla, Founder & CEO, Finway Capital.

If the deposit is to be paid before maturity in ‘First Holder or Survivor,’ then signatures of both the depositors are mandatory, but after the demise of the first holder, all rights automatically shift to the second holder. However, the second holder will have to produce the necessary documents to prove the demise of the first holder. Usually, ‘Either or Survivor’ is technically more simple and easy if the chemistry between the people is good and long-lasting. This will also ensure that any of the account holders can operate the account if one

is not well or there is a crisis.

Nomination Facility

There is also a nomination facility, which is always available to savings account holders, – i.e., the account holder can designate a nominee who will be the beneficiary in case of the demise of the account holder. Moreover, if the account holder couldn’t decide the name of the nominee, he/she is free to choose one at any point in time during his/her life.

“If someone thinks that he/she has chosen the wrong person, he/she can willfully change the nominee in his/her life. It is simple as well as the authentic procedure that is instrumentally helpful in settling false claims and protecting the rights of the nominee appointed by the deceased. However, one shouldn’t forget that a nominee can exercise his/her rights only after the death of the account holder and not during illness or other emergencies,” says Chawla.

Online Banking

If the matter relates to only making some payments or urgent fund transfer in times of crisis, then that can be done online also. All you have to do is to leave your account number and the online banking passwords with someone in your family you trust. This will solve all the problems!

  1. K
    K.Mundanad
    Nov 9, 2017 at 1:18 pm
    One safe option, which can be exercised by the account holder is to sign few blank cheque leaves with the words "Not Exceeding Rs....", written thereon. Amounts written between paralegal lines on the cheque leaves would depend upon his risk perception. Such cheque leaves are to be kept in the safe custody of his most trusted relative, who would fill up the amount column of the cheque, depending upon actual requirement.
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