Opening a joint account is similar to opening a new bank account. Account holders must verify their identity in-person or online when opening the account.
Unlike an individual account, a joint bank account is accessible by two or more people with equal ability to deposit, withdraw, or transfer funds, along with the right to perform other banking transactions from the account.
Key Takeaways
- Joint accounts are regular chequing accounts that are accessible to two or more account holders.
- Having a joint account can make life easier if you share bills or finances with a loved one.
- It’s important to be mindful of the financial risks and legal implications of joint accounts before opening one.
- Our choice for best joint account goes to EQ Bank’s Savings Plus Account.
What is a joint bank account?
A joint bank account (either a chequing or savings account) is one that is accessible to two or more account holders, with each account holder equally able to withdraw, deposit, or transfer funds.
Joint account holders do not need permission from any other account holder to perform a transaction within the account.
These accounts can be very useful for accomplishing many different tasks, such as:
- Sharing expenses
- Paying bills
- Building up savings
- Making purchases for couples, families, and businesses
Some couples who share a joint account also maintain individual accounts for personal expenses.
The amount that you and your joint account holder each contribute may vary. Some people choose to contribute equal amounts while others contribute equal percentages of their respective incomes.
How do joint bank accounts work?
Joint bank accounts function in much the same way as regular chequing or savings accounts, the difference being that two or more people have access to a joint account.
Depending on the institution you bank with, you can open either a chequing or savings account as a joint account.
Most banks offer each joint account holder their own debit card and personalized cheques, allowing each account holder the ability to issue cheques from the account. Most banks offer safeguards to ensure any withdrawal requires signatures from all account holders.
A joint account offers every account holder equal access to the account, so trust and communication are key. You should only open a joint account with someone you trust and can communicate with.
How to open a joint account
Opening a joint bank account is similar to opening an individual bank account. You'll need to decide where to bank, then supply documentation to verify the identities of all account holders.
First, research possible financial institutions before deciding where to open a joint account. Consider the following when choosing between banks:
- Fees: Look into bank fees, such as those charged for paper statements, ATM usage, NSF situations, monthly account fees, etc.
- Features: Consider which features you need and which others – overdraft protection, earning reward points, etc. – spark your interest
- Accessibility: Choose a bank that has branches and/or ATMs near your home, work, or other convenient locations
- Account limits: Consider how many free transactions are included each month, the number of transfers allowed between accounts, how many ATM withdrawals are included, etc.
- Security: Most Canadian banks have CDIC coverage, so look for other safety features like multi-factor authentication for online banking, chip-enabled debit cards, etc
- Welcome offers: Many institutions offer bonuses for opening a new bank account, so be sure to compare and choose the most worthwhile option
Once you've chosen your bank, all account holders will need to supply at least two of the following documents to verify their personal information before the joint account will be opened:
- Two pieces of Government ID: A valid provincial/territorial driver’s license or a Canadian passport will suffice
- Prove your address: A utility bill or credit card statement with your current address will work
- Social insurance number: Some banks will require each account holder’s SIN
If you're applying for your joint bank account in-person, make sure all prospective account holders are present and have their documents ready. Once your identities are verified, be sure to review all forms and papers before signing.
Some banks will allow you to open a joint account online. Make sure you have all pertinent documents ready to scan or upload and be prepared to answer personal questions. Even when you do this online, it's still possible that the financial institution may require all account holders to visit a branch to complete the process.
Who should open a joint bank account?
Couples, families, and business partners are ideally suited to open joint bank accounts, so long as all parties trust each other.
- Couples: These accounts can be very convenient for paying day-to-day items (mortgage, rent, utilities, car payments, etc.). If you’re saving for something big, both you and your partner can contribute toto build your fund.
- Families: This can be helpful for parents saving for their children’s education and/or activities. When the kids get older, opening a joint account with your teenager or young adult can give them firm footing as they begin their personal financial journey.
- Caregivers and dependents: Helping aging parents or loved ones by paying their bills from a joint account can be very helpful as well, especially if the elderly individual has mobility and/or memory issues.
- Roommates: Joint accounts can make it much easier for housemates to split rent, utilities, and other various forms of shared living.
- Businesses: Joint accounts for businesses can be very handy if more than two owners are responsible for expenses such as bill payments and employee salaries, or building up a reserve fund for the business.
How to close a joint bank account
Before closing a joint account, make sure all account holders agree to the closure. You can then follow these steps:
- Open a new account: Open either a new joint account or your own individual account so you have somewhere to transfer your portion of the joint account’s funds
- Cancel automatic obligations: Make sure all direct deposits, automatic payments, and other financial obligations are canceled and redirected to the new joint or individual account
- Withdraw funds: In coordination with your fellow joint account holders, withdraw and direct funds to the new bank account(s)
- Avoid overdrafts: Ensure the joining account is in good standing with the bank and that no payments are outstanding – otherwise, you risk overdraft fees and/or NSF penalties
- Contact the bank: Get in touch with the bank to confirm whether all account holders will need to visit a branch in-person to close the account
- Close the account: Either in-person or online, instruct your bank to close the joint account and ask for written confirmation that the closure is complete
What happens to a joint account in the event of death or divorce?
In the event of a joint account holder’s death, the remaining funds may go to the other account holders. In the event of divorce, joint accounts are dissolved.
- Death: Some joint bank accounts include a "right of survivorship" within the terms of the account. In this case, the death of one account holder means the remaining funds are transferred to the surviving account holder(s). If there is no such agreement, the account could become part of the deceased person’s estate, making the issue more complex. Ask your financial institution about this before opening a joint account.
- Divorce: Joint accounts are dissolved and divided based on the divorce settlement.
What are the pros and cons of a joint bank account?
One of the biggest conveniences of having a joint bank account is that you and your partner can pay your bills and purchase household necessities more easily. However, allowing someone else to have control over your money can feel uncomfortable.
| Pros | Cons |
|---|---|
|
|
$75 GeniusCash + Unlimited transactions for $0 + Ding-free non-affiliated ATM usage.
$25 GeniusCash + $50 bonus for funding a new account, and $0 commissions on stocks & ETFs
$12 GeniusCash + Access trusted news coverage 24/7 + Digital and home subscription options.
$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Best joint bank accounts in Canada
While there are plenty to choose from, a few of the top joint bank account options include the EQ Bank Personal Account, Scotiabank Ultimate Package, and Simplii No Fee Chequing Account.
Here's an overview of these 3 accounts and what they have to offer Canadians:
| Joint account | Features | Interested? |
|---|---|---|
| EQ Bank Personal Account | * Up to 4 people can join the account
* 3% interest rate * No monthly fees or minimum balance |
Apply now |
| Scotiabank Ultimate Package | *
$700 welcome bonus
* Unlimited debit and Interac e-Transfer transactions * No overdraft protection fees * Bonus interest available on specific accounts (like the Scotiabank MomentumPLUS Savings Account) * Free cheques * Fee waiver on certain credit cards * Earn Scene+ points |
Apply now |
| Simplii No Fee Chequing Account | * No monthly fees
* Access to over 3,400 CIBC ATMs * $350 welcome bonus * Overdraft protection * Tiered interest rates up to 0.1% |
Apply now |
Joint bank account alternatives
For those who don’t want to open a joint bank account, there are a few other options that provide similar conveniences:
- Authorized user: Also called a "secondary signer" or “convenience signer,” this person can make withdrawals and deposits on the account, but they won't have any legal rights to the account, similar to a fellow account holder with a joint account.
- Beneficiary: A beneficiary can withdraw funds and make deposits. If the primary account holder dies, all funds in the account go to the beneficiary.
- Power of attorney: The power of attorney has legally-assigned rights to another person’s property and finances while the primary asset holder is still alive. This often occurs when the primary asset holder doesn't have the mental capacity to administer their affairs and finances.
Tip: Only assign someone to have power of attorney over your affairs (or the affairs of a loved one) if you trust them completely.
FAQ
Do joint account cheques need to be signed by both parties?
Typically, no. Most joint accounts provide both parties equal access, only requiring consent from one party to make a payment or withdrawal. However, you can set up the limits on the account, such as requiring both signatures on every cheque.
Which is the best joint chequing account in Canada?
Our top choices for joint accounts in Canada are the EQ Bank Personal Account, Scotiabank Ultimate Package, and Simplii No Fee Chequing Account. However, the best joint chequing account for you will depend on your priorities and financial goals.
Can I get an ATM card for a joint account?
In most cases, yes, you can access and use your joint account just like an individual account – but another person can use it too. Some accounts, including the EQ Bank Personal Accountwill provide each co-holder with their own EQ Bank Card.
Should I open a joint chequing account?
If you completely trust the person you’re considering sharing an account with and you believe the pros outweigh the cons, then a joint bank account can be a very handy tool to help you manage expenses.
Is it best to have separate or joint savings accounts?
This depends on your personal circumstances and preferences, but not all couples/spouses need a joint savings account. If you have complete trust in your partner and have the same savings goals, a joint account can be a valuable choice.
What banks offer joint accounts in Canada?
Most banks in Canada offer some type of joint account, including the big 5 banks and online banks. EQ Bank, Simplii Financial, and Scotiabank are three institutions that offer valuable joint accounts with various benefits and perks.
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