Joint Accounts
It is not uncommon for persons to have deposit accounts of more than one type and joint accounts in the same institution. Examples of joint account holders are married couples or a parent on behalf of a child. The DIC insures separately, and collectively, eligible deposits held in more than one name, i.e., joint accounts. For joint accounts, each account holder is assumed to have an equal share in the account, unless the records show otherwise.
Illustration A: Calculation of a Single Joint Account
If Mary Bowe holds a joint account with her husband, Harry Bowe, and another account in her name alone, in one or more branches of Bank A, the joint account is considered as held in a different capacity with different rights than the account held in her name alone. Therefore, the deposit in the joint account will be eligible for insurance cover separately from her other account.
| Depositor | Accounts | Branch | Amount | Insured | Comments |
|---|---|---|---|---|---|
| Mary and Harry, jointly | Joint account | Main | $150,000 | $50,000 | Mary and Harry are joint depositors/account holders of a joint account. The interests of co-owners are deemed to be equal, unless the records reflect otherwise. Joint accounts are insured up to a maximum of B$50,000, so $50,000 is insured and $100,000 is not insured. |
Illustration B: Calculation of DI Coverage for multiple Joint Accounts
In this illustration, Mary Bowe and Harry Bowe are joint depositors/owners of three (3) accounts. Their interests are deemed to be equal, unless the records reflect otherwise. Each joint account is insured up to the maximum of B$50,000. As such, their amounts are added together to obtain the insurable/payout amount.
| Depositor | Accounts | Branch | Amount | Insured | Comments |
|---|---|---|---|---|---|
| Mary and Harry, jointly | Savings | Main | $25,625 | Mary and Harry are joint depositors/account holders of three (3) accounts. The interests of co-owners are deemed to be equal, unless the records reflect otherwise. Deposits owned by the same depositors/account holders are added together and the loan balance deducted from the deposits to obtain the insurable/payout account. Joint accounts are insured up to a maximum of B$50,000, so Mary and Harry’s net deposit of $5,625 will receive deposit protection. | |
| Checking | Bay | $30,000 | |||
| Mortgage loan | Bay | ($50,000) | |||
| Total | $5,625 |
Illustration C: Calculation of DI Coverage with more than one joint account involving different joint owners
| Depositor | Accounts | Branch | Amount | Insured | Comments |
|---|---|---|---|---|---|
| Mary and Harry, jointly | Savings | Main | $25,500 | Mary is a joint depositor on 3 accounts held with 3 different co-owners. The interests of co-owners in a joint account are deemed to be equal, unless the records reflect otherwise. Mary’s interest in the 3 joint accounts are added together and the aggregate amount is insured up to a maximum of B$50,000. Therefore, Mary’s deposits of $17,750 in excess of the $50,000 coverage are not protected. | |
| Mary and Sam jointly | Checking | Bay | $50,000 | ||
| Mary and Jane jointly | Fixed | Bay | $60,000 | ||
| Total | $135,000 | ||||
| Mary’s total | $67,750 | $50,000 |