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Does Nomination Guarantee A Nominee Fixed Deposit Proceeds On Death Of The Holder?


There are many individuals who believe that by nominating a financial asset like a fixed deposit they are securing the asset in favour of the nominee. That may not be true under all circumstances.


Does Nomination Guarantee Nominee Fixed Deposit Proceeds On Death?
Let's take the example of a financial asset like a bank fixed deposit. In case an individual decides to nominate a person, the idea is very good. The bank will exercise due diligence and would take all the documents necessary including the death certificate and satisfy itself on the various aspects and handover the money to the nominee.

But, if another individual contests it legally, like say the rightful legal heir, the bank may have to stall the process of disbursement. What this could also mean is that the Honourable Courts in the country would then decide on whom the amount should go to.

In any case it does not always happen, though these days cases and stay orders are pretty common. In any case, if there is no contestant the bank may decide in favour of the nominee.

Here are a few documents that the nominee can keep while staking claim for the deposit:

1) Claim Form

There is a claim form that needs to be filled clearly mentioning all the relevant details of the nominee. He can also indicate his preferred means of receiving the proceeds from the bank account or deposit account.

2) Death Certificate of The Holder

This is a must and the bank is unlikely to except any death certificate apart from a government one, including the Municipal Corporation. Do not even bother to approach the bank until you have this one with you.

3) Customer Copy Of Nomination

The Bank hands over a copy of the nomination at the time of registering the nominee. One has to get that nomination, if he wants to stake claim for the proceeds

4) Proof of Address, Customer ID As Is Normally the practice.

Generally it is advised that one needs to nominate a person and the same is very important. We have highlighted only an exceptional case where there could be a problem in case a rightful legal heir stakes his claim for the proceeds of the deposit. It may not always happen and this could be on occasions. Though we have seen in the past that disputes have turned ugly and have gone the legal way.


In any case the best way would always be to make a WILL.

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