FD Nomination: How to Add or Change Nominee in Fixed Deposit

What happens to your fixed deposit if you are no longer around to manage it? It is a question most people rarely consider while investing their savings. This is where FD nomination becomes important. By naming a nominee, you can make it easier for your family to claim the deposit proceeds after your death.

With recent changes allowing up to four nominees, understanding how nomination works has become even more important for depositors.

What is FD Nomination?

FD nomination is a facility that allows a depositor to nominate one or more individuals to receive the fixed deposit amount after the depositor’s death. The nominee does not get the right to withdraw the FD while the depositor is alive. Nomination mainly helps the bank settle the deceased depositor’s claim more smoothly.

Types of FD Nomination You Must Know

1. Under simultaneous nomination, you can nominate up to four people at the same time and specify the percentage share of the deposit for each person. The shares must cover the entire deposit and add up to 100%. For example, you could assign 50%, 30% and 20% to three nominees.
2. Under successive nomination, you can name up to four nominees in a specific order of priority. The next nominee becomes effective only if the nominee placed ahead of them dies. This creates a clear sequence for handling the deposit.

Quick Insight: FD Nomination Rules in India

The current nomination framework for bank deposits, introduced through the Banking Laws (Amendment) Act, 2025, provides greater flexibility. The key rules include:

1. You can nominate up to four individuals for a bank deposit, either simultaneously or successively.
2. Nomination can be made, cancelled or varied during the period the deposit is held, subject to the prescribed process.
3. Nomination is not compulsory. Banks must provide customers the choice to nominate or opt out and cannot deny or delay account opening solely because a customer does not wish to nominate.
4. Banks are required to acknowledge nomination-related requests, including registration, cancellation and variation, within three working days. If a request is rejected for not meeting legal requirements, the customer must be informed in writing with the reason.
5. Nominee details and nomination status are to be reflected in relevant deposit records, such as term deposit receipts, as prescribed.

Need access to your FD before maturity? Click here for a guide to understand premature withdrawal rules, penalties and available alternatives.

FD Nomination: Step-By-Step Guide

You can add a nominee while opening an FD or later. The exact online or offline process may differ between banks and financial institutions, but the usual steps are:

Contact the Bank or Financial Institution

Check whether nomination can be added online or requires a branch visit.

Obtain the Prescribed Nomination Form

You can usually download it online or collect it from the branch.

Enter the Required Details

Provide details such as the nominee’s name, relationship and date of birth. If you are making multiple nominations, provide the required share or priority details.

Check the Information Carefully

An incorrect name or other detail can create problems during claim settlement.

Submit the Completed Form

Use the channel specified by the institution and retain the acknowledgement or confirmation.

Change the Nominee When Required

To update the nominee later, submit the prescribed form for variation or cancellation and fresh nomination, as applicable. Keep the updated acknowledgement for your records.

Why FD Nomination is a Must?

Adding a nominee can make the handling of your savings easier for your family if you are no longer around.

Easier Claim Settlement

A valid nomination gives the bank a clear person or set of persons to whom the deposit proceeds may be paid after the depositor’s death, subject to the applicable claim process.

Less Paperwork and Confusion

Nomination can reduce uncertainty about who should approach the bank and help simplify the documentation involved in settling the deposit.

Better Financial Planning

You can decide who should be nominated and, where applicable, specify how the deposit should be divided among simultaneous nominees.

Greater Continuity

A successive nomination can provide an order of priority, helping avoid uncertainty if a nominee dies before receiving the deposit.

Easy to Update

If your circumstances change, you can change or cancel the nomination during the period the deposit is held, following the institution’s prescribed procedure.

If you are planning to open an FD, JioFinance lets you compare FD options across providers and choose one based on tenure and interest rates.

Summing Up

FD nomination is a small but important part of responsible financial planning. It can make the claim process more organised and give you greater control over how your FD is handled after your death. If you are planning your savings, JioFinance can help you compare financial products and make informed decisions with convenient digital tools and guidance.