Considering EQ | Page 2 | EQ Bank | Discussion forum

EQ Bank's Joint Savings Plus Account does support up to four account holders. So, one could multiply the CDIC coverage by various subsets of joint owners that include the parents as well.

As Bill and AltaRed pointed out, it is risky to give so many people access to the funds. I question if it is worth the risk for the extra ¼% per annum at EQ Bank over placing what is above $100,000 at Hubert for 1¾%.

Rick said
Have to log in through EQ using log in information for the FI you want to link, select which account, and voila! Linked 3 accounts at 2 FI's from the list, and waiting for micro deposits for the 3rd FI. If you are comfortable logging in to another FI through EQ, it's by far the easiest and quickest linking I've seen.  

Even if you are comfortable logging in to another FI through EQ, I suggest changing password at that another FI account after successful linking.

I took even more precautions:

1. Before attempting to link account, I changed password at another FI to temporary password just for occasion.
2. Linked account using that temporary password.
3. After linking was successful, changed password at another FI to original.

You never know what ransomware is running at the back end responsible for linking accounts, and what data it collects.

According to their FAQ, the current limit is ten external accounts:

How many bank accounts can I link to my EQ Bank account?
You can link up to 10 other external accounts to your EQ Bank account.

I really can't see any need for four account members in most situations. It could get awfully confusing, especially for executors dealing with the bank and distributions later when one of them dies.
I wouldn't set up four unless each had a legitimate need or claim to access the funds - perhaps four housemates, loan, alternative to POA when banks are difficult to deal with, saving for a joint purchase, or something like that.

Thanks for the insight everyone but I am curious as to how the primary account holder Is determined in a joint account? Aren’t both people considered equal? Or do they trace back to the account that “funded” the joint account to determine that? Or am I just stressing over something very trivial and just pick someone in the Joint account to submit the T5 interest come tax time?

Joint owners are "considered equal". But usually with the online application for an account someone (primary) starts the application and at some point it asks you if this is going to be a joint account. After indicating yes the secondary person's info is entered. So it's up to you who's data you input first and then second, your choice, no-one else really cares.

Or sometimes an existing single account can be made joint by adding a secondary person, though I'm not sure if online banks work that way too.

I always make sure the primary is the person who's going to be reporting the interest income to CRA because it's the primary's SIN that's going to be on the T5, CRA will have no questions if the T5 SIN matches the person reporting the interest.

Bill said

I always make sure the primary is the person who's going to be reporting the interest income to CRA because it's the primary's SIN that's going to be on the T5, CRA will have no questions if the T5 SIN matches the person reporting the interest.  

Could you clarify your meaning here, Bill?
Let's say someone has $400K and they want to deposit it at a bank in such a way that it can all be CDIC-insured and they also want to avoid probate tax before their four beneficiaries will inherit equally.
Are you saying that they should set up 4 joint accounts, with the beneficiaries being the primary account holders, one for each account, with the expectation that each primary account holder would report the interest earned on the account where they are primary on their T1?

Loonie said

Could you clarify your meaning here, Bill?
Let's say someone has $400K and they want to deposit it at a bank in such a way that it can all be CDIC-insured and they also want to avoid probate tax before their four beneficiaries will inherit equally.
Are you saying that they should set up 4 joint accounts, with the beneficiaries being the primary account holders, one for each account, with the expectation that each primary account holder would report the interest earned on the account where they are primary on their T1?  

Bill is simply saying that to avoid potential questions from the CRA about mismatches between whose name the T5 is in, and who actually reports interest income on their annual tax return, it is best that the primary owner of the funds be listed first for T5 purposes.

It is not terribly relevant whose name is first or second in a JTWROS account for estate purposes. The surviving joint account owner normally automatically owns the proceeds in such undivided interest accounts, save for situations in which it is intended that the surviving owner not have a beneficial interest, e.g. parent/child for POA equivalent purposes.

Added: I agree with what post #34 just said too in his/her last para.

I think it's all been covered by the replies here. Just to add:

The Income Tax Act rules are that joint owners should report the interest income from their portion, their contribution, to the joint account. However in this case CRA seems to ignore the Act they're charged with administering as my experience is that as long as the T5 amount, which is always issued indicating the primary's SIN, is reported by the primary then CRA is happy, their computer matches the T5 SIN with that SIN's return interest amount reported and CRA is happy if the amounts are the same, the return is not kicked out by the CRA computer for audit, no follow-up by CRA. That's what I try to do, I give CRA whatever will keep them happy, i.e. away from me. So spouses can easily set up joint accounts making whoever they want to report the interest income as the primary, and my experience is CRA never questions it. Maybe not so critical if you're a senior and can otherwise move enough income between partners via pension income splitting provisions.

Thank you for that, I never get emails from EQ. I have a 2.0% offer from Tangerine, which was technically better though the same rate. Tangerine guarantees their promo rates (unlike some banks) so AFAIK when their regular went from 0.25% to 0.20%, the bonus should have gone from 1.75% to 1.80%.

The reason I left my money at EQ despite that, was I don't like Tangerine's model of constant promos. Sadly (seriously, sadly) my principles don't extend to 0.30%. My father (for example) would probably not compromise for only 0.30%.