The information from this article is based on an interview with Heather Alexis-Martin on the #StraightofftheBATT live show. Heather Alexis-Martin currently holds the position of Branch Manager at the Port of Spain location of JMMB Bank Limited. She has been in the financial sector for over thirty years and has experience and skills in Operations, Retail and Commercial Banking, and business planning.
According to Alexis-Martin, one of the many reasons individuals decide to open joint accounts in Trinidad & Tobago is to save towards Carnival-related expenses. If you manage your finances with a partner or spouse, a joint bank account might make things simpler and easier for you financially. There are several everyday banking advantages offered by a joint savings account, but there are some things to take into consideration before opening a joint bank account.
What is a Joint Account?
A joint bank account is shared with another person and can be used for tasks like paying bills, depositing wages, saving for a vacation, or making a down payment on a big purchase like a home or car.
A joint bank account can be opened by any two people; however, they are most frequently held by spouses, partners, relatives, or business partners.
How do Joint Accounts Work?
Joint savings accounts function similarly to regular savings accounts, paying interest and protecting your funds. The main distinction is that the account is fully controlled by both of its owners. Each account holder has access to a debit card. Additionally, the account’s balance can be increased or decreased by either account holder, that is, you or the person you opened the account with can deposit or withdraw any accessible amount from the joint account. Therefore, if any joint account holder decides to withdraw all of the money and close the account, they can do so.
Both owners are entitled to the funds in joint accounts. Even if they did not deposit the money, either party may take it out or use it as they see fit. Since each individual has equal control over the account’s funds, you should only open a joint bank account with someone you trust.
Is a Joint Account Right for You?
Firstly, you should consult with your banker and share the purpose of opening a joint account and they will advise you further. However, here are some examples of when joint bank accounts make sense:
- Couples that jointly manage their finances and pay for their shared expenses such as groceries, rent and other expenses.
- Elderly parents and adult offspring to assist with the allocation of finances to elderly care and support services.
- Parents opening a joint account with their kids to monitor funds as they develop responsible financial practices.
If you would like to open a joint bank account, please reach out to your bank for further information on the requirements to do so.
Want to learn more about digital banking and joint accounts in T&T? Check out our video below:
This article is based on a discussion with Heather Alexis-Martin on the Straight off the BATT Live Series from the Bankers Association of Trinidad and Tobago. The show aims to help you understand financial literacy and education. Subscribe to our YouTube channel for more.