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Thinking of Opening a Joint Account? Beware
February 1, 2016
8:03 am
dougjp
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Without disclosing their highly unusual requirements up front, this bank had me waste 15 minutes opening a joint account and then time spent on the phone with them, only to discover at the end that they will refuse to allow deposits from the individual joint account holders! Yes you read that right. You MUST have a joint banking account that has cheques with both your names printed on them, or you are wasting your time.

I've opened numerous joint accounts and funded them with cheques from our individual main chequing accounts, never before been declined. When opening the account online, the process is detailed and each person goes through verification questions and gets unique user IDs and passwords. But nothing about the accounts is "individual" despite it being a joint account!

The definition of not wanting customers..... What was their "solution"? Each person go through opening individual accounts (there's another half hour) and then later do something to link account or change accounts to joint (?) (there's another 15 minutes+).

Needless to say I declined to appreciate their inconsideration, and they lose.

February 1, 2016
9:39 am
AltaRed
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I agree that is odd, but I did notice that requirement when opening my individual account some time ago. There was a statement that said the cheque has to have both individual's names on it. Perhaps a (new?) anti-money laundering regulatory requirement on opening new accounts. It could make sense when one really thinks about how money moves globally.

That said, it is not odd going the other way around. At least some institutions have blocks moving money from Joint Accounts to Individual accounts as there probably should be. I would never be party to a Joiint Account where a co-owner of the account could move money to his/her individual account.

    Added later:

With additional thought, it isn't so odd when opening a new account that the financial institution definitely wants to validate the identity of all joint account holders. One of the easiest validations is to accept what another financial institution has accepted. That, along with the joint account owner signatures, SINs, DL's, etc. should tick the boxes needed.

It would be especially important as well if that cheque is being used to set up a transfer mechanism to an external account. Joint funds should never be transferable to a 'single' account.

February 1, 2016
12:09 pm
Loonie
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I have run into this before. It's not new. I just can't remember where it came up before, but it was some time ago - i.e. years.

February 1, 2016
4:05 pm
Winnie
Ontario
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They only say that, they don't do that, as far as I know.
I actually have 2 Zag joint accounts - one with my husband and second with my daughter.
Zag allowed deposits from the individual joint account holders and withdrawal too, we did about 10 transactions so far without any problems.

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