In Malaysia, joint bank accounts are very common. They are often opened by spouses, parents and children, or even friends. However, when one of the account holders passes away, many people are unsure what happens to the money inside the account.
A common assumption is that the surviving joint holder automatically becomes the sole owner of the funds. In reality, the outcome depends on how the account is operated (whether either party can sign or all must sign) and the bank’s specific policy.
Before reviewing each bank’s terms, let’s first recall what we discussed in our earlier article: Joint Bank Accounts in Malaysia — Is the Money Automatically Yours? Not Always. That article explained how a “survivorship clause” works and clarified that even if a bank releases the funds to the surviving account holder, it does not necessarily mean the survivor legally owns the money. The funds may still be considered part of the deceased’s estate and subject to distribution under the law.
Let’s now see how different banks in Malaysia handle such situations.
Disclaimer: The information provided in this article is based on publicly available sources as of October 2025. Policies and regulations may change from time to time. This article is intended for general informational purposes only and should not be construed as legal, tax, or financial advice. Readers are encouraged to consult their own professional advisers or the respective financial institutions for guidance specific to their individual circumstances.
Maybank
Reference: Clause G
Maybank may release the balance to the surviving account holder, provided that the survivor signs an indemnity form to protect the bank from future claims. Such payment will constitute a valid discharge of the bank’s obligation. However, where the mandate requires all account holders to sign, the joint account will generally be frozen until the bank receives a Grant of Probate or Letter of Administration, or unless a court order directs otherwise.
RHB Bank
Reference: Clause 3
If the account is operated on an “either one to sign” basis, the surviving joint account holder may continue to operate or withdraw funds from the account, and payment to the survivor constitutes a complete discharge of the bank’s responsibility. If the account is operated by “all to sign”, the account will be frozen upon notification of a death, and the funds will only be released upon receipt of a Grant of Probate or Letter of Administration.
UOB Bank
Reference: Clause 3.18
Upon the death of any joint account holder, UOB will apply the doctrine of survivorship, allowing the surviving holder to withdraw the funds. Once payment is made, the bank will be fully discharged from liability.
OCBC Bank
Reference: Clause 8
In the event of the death of one of the joint account holders, OCBC may release the money to the surviving account holder. However, OCBC will not determine who is legally entitled to the funds that will be decided under estate law if there is a dispute.
HSBC Bank
Reference: Clause 4
If one of the joint account holders passes away, the Bank will release the remaining balance to the surviving holder, after settling any amount owed to the Bank. Once the payment is made, the Bank’s responsibility ends, and it will no longer be liable for any future claims over the money.
Public Bank
Reference: Clause 13
If one of the joint account holders passes away, Public Bank is authorised to release the remaining balance to the surviving holder. Once payment is made, the Bank’s responsibility is considered fully discharged.
AmBank
Reference: Clause 19
If the joint account is operated on an either one to sign basis, AmBank may release the remaining balance to the surviving account holder. However, if the account requires all to sign, the account will be frozen until the bank receives the Grant of Probate or Letter of Administration. Once payment is made to the survivor, the bank’s obligation is considered fully discharged.
Summary: How each bank handles the death of a Joint Account Holder?
| Bank | Can the surviving holder withdraw? | Remarks* |
| Maybank | Yes (with indemnity form) | Frozen if “all to sign” |
| RHB Bank | Yes | Frozen if “all to sign” |
| UOB Bank | Yes | Based on survivorship clause |
| OCBC Bank | Yes | Legal ownership may still be disputed |
| HSBC Bank | Yes | After settling any debt to the bank |
| Public Bank | Yes | Payment discharges bank’s liability |
| Ambank | Yes | Frozen if “all to sign” |
Joint accounts are convenient, but often misunderstood. Each bank handles the death of a joint account holder differently. Even if the bank releases the money to the surviving holder, it does not always mean the survivor legally owns it.
To avoid disputes, always check your bank’s current policy and clearly state your intentions in your Will. Proper estate planning ensures that your wishes are carried out smoothly and your loved ones are protected.
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