Understanding Fixed Deposit Nomination Rules and Process
July 03, 2025

Have you ever considered who will manage your Fixed Deposit investments if something unexpected happens to you? At the time of FD account opening, you can add nominee against your FD to ensure the money is passed on to the beneficiary upon your demise. In this blog, we have explained the importance of FD nomination and how it can financially safeguard your family after you're gone.
Fixed Deposit Nomination: The Role of a Nominee
When you open a Fixed Deposit account, you have the option to nominate someone who will receive the proceeds of the FD in case of your death. A nominee acts as a custodian for the fixed deposit funds. Their role is to ensure that the money is handed over to the legal heir of the depositor.
Kindly note that in certain instances nominees can also be legal heirs. Basically, although a nominee might sometimes be the same person as the legal heir, they do not actually own the funds.
Fixed Deposit Nomination: How Many Nominees Can One Choose?
Generally, you can select one family member as a nominee per account. You can do this at the time of account opening. It's always recommended to appoint a nominee so that the deposit amount doesn't remain unclaimed in the bank.
How to Appoint a Nominee Online?
You can follow the below steps while opening an FD account online
Step 1: Fill out the nomination form when opening an FD account
Step 2: Provide details like nominee name, relationship, and date of birth of the nominee
Step 3: Keep this information updated as per any changes in your preferences or circumstances
Once you complete the account application process, your nominee details will be processed. Your FD account will be transferred to the nominee upon your demise.
Who Can Be a Nominee?
Importance of Fixed Deposit Nomination
The importance of nominating individuals for your fixed deposit accounts cannot be overstated. Let's take a closer look at why FD nomination is crucial:
1. Seamless Transfer of Funds
By nominating someone, you ensure that your hard-earned savings are seamlessly transferred to your loved ones. This helps avoid any potential conflicts or delays in accessing the funds.
2. Protection of Your Legacy
FD nomination safeguards your legacy. It ensures that your savings are utilised as per your wishes and benefits the individuals you intend to support.
3. Ease of Access
Nomination simplifies the process for your legal heirs to access the funds in your FD account. They can avoid lengthy legal procedures and documentation, making a difficult time slightly easier for them.
4. Avoidance of Disputes
Fixed deposit nomination helps prevent disputes among family members regarding the distribution of assets. It provides a clear roadmap for the transfer of funds and reduces the chances of conflicts arising.
Fixed Deposit Nomination: Key Tips for Appointing a Nominee
Appointing a nominee for your fixed deposit account is a simple process. Here are some important points to keep in mind:
1. Individual or Joint Account Holders
2. Nominee Must Be an Individual
The nominee must be an individual, not an entity. This ensures that there is clarity regarding ownership and distribution of funds.
3. Appointing Nominee at the Time of Investment
Final Thoughts
Fixed deposit nominations are not just formalities; it's a critical process that ensures your hard-earned money benefits your loved ones directly and quickly in unforeseen circumstances. Simplify future complexities today by nominating someone trustworthy for your fixed deposits.
Looking to grow your savings? Ujjivan SFB offers a wide range of fixed deposit products. Select the FD of your choice and take a step forward to your financial goals. Alternatively, you can browse through Ujjivan SFB product suite - our wide range of financial products are designed to make your financial life better.
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FAQs
1. What is the difference between a nominee and legal heir?
In fixed deposit nomination, a nominee is responsible for receiving the funds and ensuring they are distributed to the legal heirs. Legal heirs are the individuals who have a right to inherit the funds as per the law or will. In some cases, legal heirs and nominees can be same individuals.
2. What documentation is needed to appoint a nominee?
To appoint a nominee, you typically need to provide the nominee’s name, date of birth and relationship. Some banks may have additional requirements for fixed deposit nomination.
3. What if I don’t appoint a nominee for my FD nomination?
Without a nominee for your FD account, legal heirs will need to provide proof of their relationship with the deceased and obtain a death certificate to access the funds. This process can be cumbersome and time-consuming.
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