6 - How does the deposit guarantee apply to a joint account?

1°) A joint account is divided equally among its co-holders prior to calculation of the compensation accruing to each of them, unless otherwise specified in the agreement.

Each co-holder combines his/her share with his/her other deposit accounts and is eligible for a compensation ceiling of €100,000, independently of the other co-holders.

 

2°) Example:

Person A has an individual account with a balance of €6,000.

Person B has an individual account with a balance of €8,000.

Together they have a joint account with a balance of €3,000.

  • The compensation amount for which person A is eligible is: €6,000 + one half of €3,000 = €7,500;
  • The compensation amount for which person B is eligible is: €8,000 + one half of €3,000 = €9,500.

 

DISTINCTION BETWEEN A JOINT ACCOUNT AND A TENANTS-IN-COMMON ACCOUNT

 

3°) Note: a joint account is different from a tenants-in-common account.

A joint account can be used by either of the co-holders. Its name generally includes the words "Person A or Person B".

A  tenants-in-common account can only be used with all the co-holders' signatures. Its name generally includes the words "Person A and Person B".  

 

Both types of accounts can be opened for more than two people.