Who Can Open Joint Bank Accounts in the Philippines?
They're not just for married couples.
(SPOT.ph) A recent exchange involving erstwhile presidential spokesperson Harry Roque's former aide, AR Dela Serna, and Chairman of House Committee on Public Order and Safety Dan Fernandez has raised an important question about joint bank accounts in a House hearing on September 4.
During the session, Dela Serna disclosed that he and Roque shared one from which he would make monthly withdrawals ranging from P1.2 million to P1.8 million "for election purposes, payroll ng mga tao."
Because joint bank accounts are typically shared by married couples or close family members, can people who are not related or married to each other have one? It turns out Philippine law allows more flexibility on joint bank accounts than most people realize.
Also read: Nine Philippine Banks Make It to Forbes’ Best in the World List
Who can open a joint account in the Philippines?
Joint bank accounts aren’t exclusive to legally married couples.
In the Philippines, any two or more individuals can open a joint account, regardless of their relationship. Common arrangements include not only spouses but also business partners, family members, and even friends or employer-employee pairs for shared expenses, business operations, or family financial management.
Banks in the Philippines offer two main types of joint accounts:
- Joint “and” account: All account holders must approve any withdrawal or transaction. This provides more security but requires more coordination.
- Joint “or” account: Any account holder can manage the account independently, making it more convenient but also riskier if trust issues come up.
These joint accounts can be savings, checking, or time deposit accounts.
Of course, there are drawbacks to opening joint accounts. You will be twice or thrice at risk for debts on the account as one’s financial mistakes could severely impact the other. This makes shared budgeting a must for those who are planning to set up a joint account.
The Bangko Sentral ng Pilipinas (BSP) governs how these accounts are handled, ensuring that both “and” and “or” types are properly documented. BSP’s Circular No. 1163 Series of 2022 emphasizes that all parties have equal rights over the funds, regardless of the relationship.
“The share or portion belonging to the joint depositors in the joint deposit account shall be presumed equal, unless the contrary is proved, and the benefits as well as the charges in the joint account shall be proportional to their respective shares.”
On the other hand, deposits can be made by any account holder without needing the consent of others: “Under both types of joint accounts, deposits may be placed in the account even without the authority of the other depositors named in the account.”
How to open a joint account in the Philippines
Do note that not all banks in the Philippines offer joint accounts. Popular banks like BDO, Metrobank, BPI, and Security Bank offer this option, but some like CIMB Bank do not.
Choose the type of joint account
Do you want both of you to authorize withdrawals or transactions? Go for a joint “and” account, where everyone needs to sign off on any movement of funds.
Do you want the flexibility to make transactions on your own? Go for a joint “or” account, where either of you can manage the account without the other person’s consent.
Prepare required documents
Both account holders must bring valid, photo-bearing government IDs. Some banks might ask for additional documents, like income, proof of address, or Tax Identification Number (TIN).
Visit the bank together
Both parties must be present when opening the account.
Make the initial deposit
The required deposit will vary depending on the bank and the type of account, so be prepared to have that amount of money at the time of opening.
Also read: It's High Time to Open Another Bank Account, Here's Why