Fixed Deposit Nominees

1. Fixed deposits come in two schemes: Cumulative, where interest is payable quarterly or yearly but paid at the end of the tenure, and Non-cumulative, where interest is paid quarterly, annually or every month. Those needing regular income can choose non-cumulative schemes.

1. Customers can take loans against fixed deposits. Banks may also offer credit cards and loans without requiring a CIBIL score, giving 70-90% of the deposit value as loan or credit limit. Some banks also offer EMI cards with a set limit and EMI repayment options.

1. It is important to appoint a nominee so the assets reach the right person in case of death. The bank asks for the nominee details while opening a fixed deposit account.

Role of the Nominee

1. He has no right over your money unless specified under the will or if he inherits the money.
2. Nominee is a mere custodian of the fixed deposit.
3. He is the contact person for the account, in case the account holder is not reachable or in an event of the account holders death.
4. The nominee directs the court on how to go about the account in the event of the account holder's death.
5. At the time of claiming for the deposit, the nominee will have to provide identification proof.

Procedure on appointment of the nominee

1. Individual, single or joint account holders can appoint nominee. Hindu undivided family, trust, society etc. cannot appoint a nominee.
2. The nominee must also be an individual.
3. It is advisable to appoint a nominee as there will be less trouble in transferring the money in an event of the account holder's death.
4. Only one person can be appointed as the nominee.
5. If you don't appoint a nominee at the time of investment, you can appoint one on a later date. Relevant application forms are to be submitted to the bank.
6. The bank provides a column to fill out the nominee detail while taking a fixed deposit.

Appointment of a Minor as a Fixed Deposit Nominee

In this case the minor's guardian will sign on his behalf. The bank requires the nominee's and the guardian's name, address and photograph.

Nomination Process for Joint Account Holders

This is permitted by certain banks. In case of one of the joint holder's death, the account will be transferred to the surviving account holder. If both the joint account holders are dead, then the benefits/ money are transferred to the nominee's account.

It is always advisable for a person opening a fixed deposit account to appoint a nominee so that the bank can easily go ahead with the instructions left with the nominee. Therefore, the account holder must carefully select the nominee, someone that he can trust. The nominee will get to decide how to go about on the loan or credit card taken on the fixed deposit.