Useful Information

What you should know about opening a joint account

“Joint accounts are typically opened by couples, close relatives or business partners, to manage a single pool of finances,” says Vicky Abela Fitzpatrick, APS Bank Senior Officer. “The joint bank account is generally suitable for individuals who need for some reason to manage their funds in unison. With a joint bank account, two or more people are able to access the money in the account. Joint account holders can all pay into the account and pay bills, write cheques or withdraw cash.”

Each couple who opens up a joint bank account has their own reason for doing so, and there are various types of joint bank accounts which one can open. The account can be for savings or current, and each one may be opened with different signing instructions, as well as instructions and terms and conditions regulating what will happen to the account should one of the holders die.

Opening a standard joint bank account is simple enough – all you need in most cases is a valid ID card. However, bank references may be requested by the bank depending on the type of account needed.

“Having a joint bank account gives each member of the couple easy access to funds and transferability of assets. However, if the account is opened as ‘either to sign’, each account holder has a 100 per cent legal ownership of the account and can withdraw funds or close the account whenever they want,” Ms Abela Fitzpatrick warns.

“If one of the account holders takes money out of the joint account, getting it back could prove difficult. If the account becomes overdrawn, each joint account holder is responsible for the whole amount owing.”