Bank Accounts, Fixed Deposits and Locker in Banks

Bank Fixed Deposits /Mutual funds/ Bonds etc above Rs 50,000
should have a nominee and this article is to give some information. .

Usually ,a blood relative ( son, daughter, mother, father etc )
is nominated, and in the even of death, the Bank will pay
the amount to the nominee, on production of death certificate.
Any other family dispute about sharing the investment
the Banks/mutual funds/ are not liable , and will not stop payment.
For nominating a minor , again a blood relative is nominated.
The nominee can be changed any time and usually kept confidential,.

Alternate method : to have the deposit as Either or Survivor.
This has a drawback, as for availing loan against FD
both have to sign the receipt. Bank will pay to the Survivor.
If senior citizens, for convenience, and due to physical
conditions add their employee or manager's name,
legal heirs have no right to claim the amount.


Legally, a nominee is only a Trustee , and has NO claim
on the investment and is expected to hand over the money
to the deceased legal heirs.
Some people, nominate their servants/managers etc and it
is doubtful, whether they will hand over the
amount as stated above.
Also P.O Savings Bank follow above procedure.
Exception:
Supreme Court has ruled out that in case of Insurance Policy,
the Company cannot pay to Nominee the Policy amount, and
all legal heirs have a claim on the amount
( unless mentioned specifically in a WILL ). Example :
A daughter was nominated , and other blood/biological relatives
like,parents/son, etc have a share in the policy amount.

Same thing applies to Kisan VikaS Patra and Senior citizens
Savings Scheme of the Govt in Post offices.

Also take care, not to sign a blank application
as the broker or agent can fill anyone's name
when you invest. Last but not least, consult a lawyer
about all the implications.

OK but What in case a son/daughter nominates mother/Father or in any of the case if the nominee is deceased then what???

Originally Posted by Vasundra

OK but What in case a son/daughter nominates mother/Father or in any of the case if the nominee is deceased then what???

Nominee can be changed at any point of time.
In case nominee has not been changed and the nominee has pre-deceased the holder, it would be treated as if no nomination has been filled up.

even if the nominee is deceased u can submit a death certificate of the deceased and claim the property as per the Hindu Succession Act...Law of Succession..the next person in line will be made the receiver for the property