Joint accounts are held in the names of two or more persons (joint account holders).
Where there are two or more accounts with the same joint account holders, and where the accounts are held in the same Policyholder/insured member institution, the balances will be added together and insured up to the maximum deposit insurance coverage limit of $1,200,000.
Deposit insurance cannot be increased by: (1) rearranging the names on the account; (2) changing the styling of the names; (3) opening more than one account with the same names; or (4) including “and”, “or”, “and/or” to separate the names.
Example 1:
The following joint accounts are held at ABC Bank Limited:
| Account # | Account Name | Type of Account | Account Balance |
|---|---|---|---|
| 1002 | A. Simpson and Susan Simms | Savings | $600,000 |
| 1003 | Adrian Simpson and S. Simms | Chequing | $700,000 |
| 1005 | Susan Simms and K. Henry | Savings | $350,000 |
The records of ABC Bank Limited showed that S. Simms and Susan Simms are the same person; A. Simpson and Adrian Simpson refer to the same person.
The following would apply in the event of a payout:
| Deposit Insurance Computation | ||||
|---|---|---|---|---|
| Depositor | Account | Total Deposits | Insured Deposits | Uninsured Deposits |
| Adrian Simpson and Susan Simms | 1002 & 1003 | $1,300,000 | $1,200,000* | $100,000 |
| Susan Simms and K. Henry | 1005 | $350,000 | $350,000 | $0 |
Example 2:
The account details of John Brown and his family are listed below. All the accounts are held in the same Policyholder institution.
| Account # | Account Name | Type of Account | Account Balance |
|---|---|---|---|
| 1002 | John Brown and Cynthia Brown | Savings | $500,000 |
| 1003 | Cynthia Brown and John Brown | Chequing | $500,000 |
| 1004 | Kyle Brown | Certificate of Deposit | $450,000 |
| 1005 | Kyle Brown & Cynthia Brown | Savings | $1,350,000 |
The following would apply in a payout:
| Deposit Insurance Computation | ||||
|---|---|---|---|---|
| Depositor | Account | Total Deposits | Insured Deposits | Uninsured Deposits |
| John Brown & Cynthia Brown | 1002 & 1003 | $1,000,000 | $1,000,000 | $0 |
| Kyle Brown | 1004 | $450,000 | $450,000 | $0 |
| Kyle Brown and Cynthia Brown | 1005 | $1,350,000 | $1,200,000 | $150,000 |
