Accounts held under any form of joint ownership are insured up to $200,000. This insurance is separate from an account held by any of the co-owners as an individual account.
Scenario:
-O and P maintain a joint account in the sum of $200,000. In addition, each maintains a separate account as an individual containing TT$200,000.
Insurance Coverage:
|
O (Individual Account) |
$200,000 |
|
|
P (Individual Account) |
$200,000 |
|
|
O & P (Joint Account) |
$200,000 |
|
|
O’s Deposit Insurance Coverage |
$200,000 (Individual Account) |
|
|
P’s Deposit Insurance Coverage |
$200,000 (Individual Account) |
|
|
|
|
Scenario:
Joint Accounts where the total amount of the deposits is in excess of the deposit insurance coverage limit.
The following accounts are held by A, B and C-:
| Account | Account Holder(s) | Ownership Category | Amount |
| No. 1 | A | Individual Account | $200,000 |
| No. 2 | B | Individual Account | $200,000 |
| No. 3 | C | Individual Account | $200,000 |
| No. 4 | A and B | Joint Account | $200,000 |
| No. 5 | A and C | Joint Account | $200,000 |
| No. 6 | B and C | Joint Account | $200,000 |
| No. 7 | A, B and C | Joint Account | $200,000 |
Insurance Coverage:
Single (Individual) Accounts:
| Account |
A |
B |
C |
| No. 1 |
$200,000 |
||
| No. 2 |
$200,000 |
||
| No. 3 |
$200,000 |
Each Single (Individual) account is fully insured up to the $200,000 maximum.
Joint Account:
Assumption
The interests of the co-owners of each joint account are considered equal for insurance purposes.
| Account | A | B | C | Total | ||
| No. 4(A and B) | $100,000 | + | $100,000 | – | =$200,000 | |
| No. 5(A and C) | $100,000 | – | + | $100,000 | =$200,000 | |
| No. 6(B and C) | – | $100,000 | + | $100,000 | =$200,000 | |
| No. 7(A, B and C) | $66,667 | + | $66,667 | + | $66,666 | =$200,000 |
| Total Allocation | $266,667 | $266,667 | $266,666 | |||
| Maximum Deposit Insurance Coverage for Joint Accounts | =$200,000 | =$200,000 | =$200,000 |
Note: The total amount of the deposits is in excess of the deposit insurance coverage limit.
Treatment required to find the deposit insurance coverage allowed:
Step 1:
Reduce each deemed allocation by the amount in excess of the maximum deposit insurance coverage limit as follows:
| Total Deemed Allocation | $266,667 |
| Deduct: Maximum Deposit Insurance Coverage Limit | ($200,000) |
| Excess | $066,667 |
Step 2:
Find the percentage of the excess in relation to the total deemed allocation:
| (Excess / | Total Deemed Allocation) x 100 | = Reduction % |
| $66,667/ | 266,667 x 100 | = 25% |
Step 3
Reduce the deposit insurance allocation applied to each account in this scenario by 25%.
New Configuration Showing Deposit Insurance Coverage Allowed:
| Account | A | B | C | Total | ||
| No. 4(A and B) | $75,000 | + | $75,000 | =$150,000 | ||
| No. 5(A and C) | $75,000 | + | $75,000 | =$150,000 | ||
| No. 6(B and C) | $75,000 | + | $75,000 | =$150,000 | ||
| No. 7(A, B and C) | $50,000 | + | $50,000 | + | $50,000 | =$150,000 |
| Deposit Insurance Coverage: | =$200,000 | =$200,000 | =$200,000 |
Scenario:
Multiple Joint Accounts bearing different names
Three joint accounts are owned by A, B and C, as follows-:
| Account | Account Holders | Amount |
| No. 1 | A and B | $200,000 |
| No. 2 | A and B | $30,000 |
| No. 3 | A and C | $45,000 |
No. 1 A and B – $200,000
No. 2 A and B – $30,000
No. 3 A and C – $45,000
Insurance Coverage
| Account | A | B | Total | ||
| No. 1
(A and B) |
$100,000 | + | $100,000 | = | $200,000 |
| No. 2
(A and B) |
$15,000 | + | $15,000 | = | $30,000 |
| Total Deposits held by A and B | $115,000 | + | $115,000 | = | $230,000 |
| Deposit Insurance Coverage for A and B | $100,000 | $100,000 | $200,000 | ||
| Uninsured Balance | $15,000 | + | $15,000 | = | $30,000 |
Note:
(1) The respective interest of the co-owners of each joint account are deemed equal for deposit insurance purposes.
(2) Account numbers 1 and 2 are owned by the same combination of individuals A and B. Therefore, these are added together and insured to $200,000 in the aggregate, leaving $30,000 uninsured.
(3) The proportion of $100,000 of this $200,000 is allocated to A’s interest in account numbers 1 and 2. Both accounts 1 and 2 are owned by the same combination of individuals and must be consolidated and insured to the maximum coverage of $200,000.
(4) C’s $22,500 interest in account No. 3 is also fully insured.
| A+B #1 | $100,000 | + | $100,000 | = | $200,000 |
| A+B #2 | $15,000 | + | $15,000 | = | $30,000 (uninsured) |
| A’s Individual Account | $22,500 | $22,500 | |||
| Insurance Coverage | $122,500 | $100,000 |
| Account | A | C | Total | ||
| No. 3 (A and C)(Total Deposits held by A and C) | $22,500 | + | $22,500 | = | $45,000 |
| Deposit Insurance Coverage for A and C | $22,500 | $22,500 | $45,000 |
Scenario:
Multiple Joint Accounts bearing the same names in varying sequences
All joint accounts in the same DIC member institution, with the same names and regardless of the sequence of the names are added together and insured up to the TT$200,000 maximum.
A, B and C maintain 3 joint accounts at the same DIC member institution.
Each joint account is for the sum of $200,000 and all three joint accounts bear all 3 names (A, B and C) in different sequences as follows:
| Account No. 1 | A + B + C |
| Account No. 2 | C + A + B |
| Account No. 3 | B + C + A |
The three (3) joint accounts held by A, B and C will be added together and insured up to the TT$200,000 maximum.
