Holding Patterns and Nominees in an FD
When you open a Fixed Deposit account, you can choose to be the only account holder or open it jointly. For jointly held fixed deposits, you need to choose the operational mandate. The commonly used mandates are:
- Either or Survivor: Only two people can open this account. The financial institution will carry out instructions even if one joint account holder signs the request
- Anyone or Survivor: More than two individuals can open this account. The financial institution will carry out instructions even if one joint account holder signs the request
- Former or Survivor: Only the primary account holder can operate the account. The secondary account holder can operate only after the death of the primary account holder
- Latter or Survivor: Only the secondary account holder can operate the account. The primary account holder can operate only after the death of the secondary account holder
- Joint – The account can be operated only when all the account holders sign the request
- Jointly or Survivor – Similar to Jointly, with the only difference being that in the event of the demise of the account holder, the survivor can continue to operate it.
- Nominee: A nominee is the custodian of a fixed deposit. Therefore, he/she is the trustee of the FD with any right over it. We will discuss more on fixed deposit nominee rights in this article.
Claiming FD after the Death of the Account Holder
Here is how financial institutions handle claim payments after the death of the account holder of an FD:
Individual
If the FD is held by an individual
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