If you are looking to open a joint bank account with a significant other, friend or anyone else, then you should be aware that there are two types of joint accounts in France with very different rules.

The main difference is related to whether or not account-holders need permission from others to spend or receive money, and whether the account will be frozen by the bank following the death of one of the account holders.

READ MORE: Everything you need to know about setting up a bank account in France

Here is an overview of the two types of joint/shared accounts;

Joint account – Compte bancaire joint

The first is the standard compte bancaire joint. This is most commonly held by romantic partners or spouses.

Account holders are called cotitulaires, and all cotitulaires have full authority to carry out any and all transactions, from withdrawals to deposits.

As a result, if one person overdraws the account or there is a payment incident, then the bank can get in contact with either of the parties, even the person that was not individually responsible for the problem.

If necessary, it is possible (with everyone’s approval) to transform a compte bancaire joint into a compte bancaire indivis (below).

This type of joint account can be held by several people – it is not limited to just two cotitulaires.

You can open a current account (compte courant), certain types of savings accounts and high-interest, restricted access savings accounts, as well as securities accounts. 

That being said, there are several regulated savings accounts, such as the Livret A and the housing savings account (compte épargne logement) that are only available for individual account-holders. 

READ MORE: EXPLAINED: The best money saving options for foreigners in France

What about death?

When this account is opened, the account-holders will sign an agreement about what should happen following an untimely death. Generally, this type of account will not be blocked after a holder’s death, unless one of the heirs of the deceased objects. 

As such, the account would continue being accessible to the surviving holders and if it is only one surviving holder, then it would become their individual account (as long as there is authorisation from the heirs of the deceased).

The share of the account belonging to the deceased will be determined when the account is settled via a notary. If there is a negative balance, then the bank may request that the surviving account holder pay for any related fees.

READ MORE: How to register a death and arrange a funeral in France

Shared account – Compte bancaire indivis

The second is called a compte bancaire indivis or a compte en indivision. You might also see it referred to as a ‘compte commun’.

This is another type of shared account, and it can be held by several people at once. The main difference is that all account-holders must approve all transactions.

There are fewer types of bank accounts that can be held under this status. You may open a current account, or a securities account (for depositing shares and bonds). However, you cannot open a savings account with a compte bancaire indivis.

What about death?

If one of the account holders dies, then as soon as the bank is informed, they will automatically block the account – therefore if you’re using this type of account as a personal account, it’s highly advisable to have a second account that you can use in the event of the death of your fellow account holder.

It will no longer record any deposits or allow any withdrawals. The balance (whether it is positive or negative) will be settled once the entire estate of the deceased person is handled.

The standard requirement is for the bank to be informed within a maximum of seven days following the death, either directly or by registered mail.

Interest may continue to accrue, but the gist is that the account will be dealt with during the settling of the estate. 

There are a few common situations where you might choose to open this type of joint account, namely following an inheritance awarded to several people or during the settlement of an estate while all heirs own the deceased person’s property.

You might also open this type of account when a property is purchased amongst friends.

Similarities between the accounts

Both accounts come with their own IBAN number, and neither require that the account-holders be married or in a civil partnership – they can be held by anyone, from family members and friends to spouses.

That being said, both will request a common address for mail related to the account.

Account-holders can be of different nationalities, but they will need some proof of address in France, as well as ID to open the account.

In both cases all account-holders must sign off on the closing of the account. Divorce or separation does not lead to the automatic closure of the account, and a specific request must be made to the bank.

For Americans, there can still be challenges with opening a joint accounts with a French partner or friend(s), due to IRS rules.

READ MORE: What are the biggest challenges for Americans in France?

American legislation known as the Foreign Account Tax Compliance Act, or FATCA for short, obliges foreign banks to report back to the US tax office on any assets held in these accounts by US taxpayers.

This can make French banks less willing to work with Americans, and it can also make it harder to open a joint or shared account.