Opening a joint account has many advantages, especially when you live as a couple. In fact, people who are married, in a civil partnership or cohabiting generally decide to open this type of account to simplify the management of their budget. However, opening a joint account is not an operation only reserved for couples. Members of the same family or unrelated persons can use it, provided they are 18 years old. But what about people on file at the Banque de France? Can we open a joint account while being banned from banking? We answer all your questions !
Difference between an individual account and a joint account
Unlike the individual account, the joint account operates in the name of several holders (at least two). Most often, the co-holders are in couples (married, PACS or cohabiting). But people with or without family ties can also open a joint account.
Regarding the number of holders of a joint account, it is not limited. On the other hand, banks have every right to set a ceiling.
Second, not all account types can be joined. Thus, it is impossible to open a regulated savings account (PEL, livret A, for example) with another person. And the same goes for stock savings plans. These are individual accounts only.
On the other hand, you can open a bank savings account, a securities account and a term account with one or more people.
On the other hand, there are three possibilities with a joint account:
- the words “Sir/Madam or Sir/Madam” (the most common). Only a signature of one of the holders is sufficient to carry out a banking operation;
- the mention “Sir/Madame and Monsieur/Madame”, meanwhile, implies the signature of all holders to carry out an operation;
- and the last, “Mister/Madame and/or Madame/Mister” turns out to be a hybrid. With this formula, it is possible to carry out certain operations with a single signature while others, more complex, require the signature of all holders.
How do I open a joint account?
Whether you are a couple or a member of the same family, or unrelated, the process for opening a joint account remains the same.
You must first make an appointment with your bank advisor. The presence of all holders is then required. They will have to provide proof of residence and an identity document.
Then, for the opening of the joint account to be effective, the co-holders must also sign the account agreement and indicate a common address in order to facilitate shipments.
Finally, be aware that you have the option of designating one of the holders of the joint account as the sole person responsible for the banking ban in the event that an incident results in a file being filed with the Banque de France.
To note : all banks may charge fees for maintaining a joint account. Find out about the rates charged by consulting the establishment’s brochure online or in hard copy.
What does it mean to « be banned from banking »?
The causes of a banking ban
If you pay for purchases with NSF cheques, and if you do not rectify the situation, the Banque de France will enter your name in the Central Check File. This record has a duration of five years. Throughout this period, you will no longer be able to issue a check.
Note that the ban on banking concerns all accounts held by the file, even those of other financial institutions.
First, the account holder can no longer hold a checkbook. And the bank can also decide to withdraw his bank card. From then on, he only has very limited means of payment to pay for his purchases.
However, the banking ban does not lead to the closure of the bank account. Indeed, access to basic banking services remains a right. Thus, even under the influence of a registration at the Banque de France, you can continue to benefit from basic banking services (consultation of accounts, cashing of checks, withdrawal of money, etc.).
Finally, the bank ban can have two bank checks per month as well as a payment card with systematic authorization.
Is it possible to open a joint account while being banned from banking?
Even if you are banned from banking, you have the right to an account. This right is open to anyone domiciled in France, regardless of nationality. It is also customary for people of French nationality residing abroad.
To open an account while being banned from banking, you must contact a bank. If it refuses you this right, ask for a certificate of refusal to open. The document must be provided to you without delay. Then go to the counter of the Banque de France to complete an account entitlement form or send your request by simple post to the national institution. Do not forget to attach your certificate to the form.
In the same way, you have the right to open a joint account while being banned from banking. However, the restrictions will be the same. You will be able to have basic banking services, but you will not be allowed to hold a checkbook. The bank may also prohibit you from possessing a personal bank card.
However, this practice is not particularly recommended for the co-holder who is not prohibited from banking. Indeed, the holders of a joint account are responsible for the debts of the other, including on the new account.
Precautions to be taken to avoid banking bans in the event of a joint account
To avoid being subject to a banking ban because of a joint account, it is important to take these precautions.
Limit your liability in the event of a payment incident by designating your co-holder as solely responsible for the banking ban if this occurs. This procedure is to be carried out when opening the account, when signing the agreement.
In addition, this protection makes it possible to escape a banking ban and a registration at the Banque de France if ever your co-holder issues bad checks.
In any case, if you have any doubts about the financial management of your future co-holder, prefer to give up the joint account. Although this type of account has many advantages, it also carries significant risks if something goes wrong.
More information about the joint account:
- How to close a joint account without the agreement of the spouse?
- What happens to a joint account in the event of death?
- Joint account separation: how to do it?
- Can we have several joint accounts?