What are the implications of opening a joint bank account?

25/11/2025

Opening a joint account or an account with several holders does not mean that the money deposited in it automatically belongs to all holders equally. The contract you sign with the financial institution will set out who the account holders are and how the money can be used (e.g. who may make withdrawals and who may make transfers), but not who in fact owns the bank balances.

The account holders must decide on the rules for using the funds. There are two options: (i) the joint and several liability regime and (ii) the joint liability regime.

Joint and several accounts have the following characteristics:

• Any holder may access and freely use the funds without the authorisation of the other account holders.
• Accounts governed by these rules are normally opened by persons with a relationship of trust, such as relatives or business partners.
• There is a clear distinction between what is agreed in the account contract and what the account holders may have agreed privately among themselves. For example, if you inform the financial institution that one of the account holders owes you money, this debt will not affect the ownership of the funds, unless both parties inform the institution or a judicial body issues a ruling in this regard.

For their part, joint accounts have the following characteristics:

• Any account holder may deposit money into the account without obtaining the permission of the remaining holders.
• To withdraw funds or carry out transactions, such as transfers, against the account balance, the consent of all holders is required, unless otherwise agreed in the contract – for example, two of the three account holders.
• The institution must block any use of funds not authorised by the required account holders, i.e. by all or some of them, depending on the terms of the account agreement.
• If the account agreement? does not specify the conditions for the shared use of the account, these rules will apply by default.

The regime governing account use may be changed:

• A joint account may be converted to a joint and several account if all the account holders expressly authorise the change.
• Unless otherwise stipulated in the account agreement, if one account holder objects to the account being converted to a joint and several account or requests that the account be blocked, the financial institution must refrain from conducting transactions not authorised by all the account holders and inform the account holders without delay.