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Bank Account Nomination: Why It Matters

Understand the practical role of nomination in deposit accounts.

✍️ FinancePortal Editorial📅 Published 21 Sep 2026🔄 Updated 28 Sep 2026⏱️ 2 min read
In this guide
7 sections
2 FAQs · 2 min read
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Bank Account Nomination: Why It Matters

Nomination tells the bank who should receive your deposits if something happens to you. Without it, your family may face a long legal process to claim the money.

Key takeaways

  • Nomination is available on savings accounts, FDs, RDs and lockers.
  • From 1 November 2025, the Banking Laws (Amendment) Act, 2025 allows up to four nominees for deposits — simultaneous (with percentage shares) or successive.
  • The nominee receives the money as a trustee for legal heirs if a will or succession law says otherwise.
  • Update nominations after marriage, births or deaths.

Types of nomination for deposits

TypeHow it works
SimultaneousUp to 4 nominees share in fixed percentages
SuccessiveNominees in order — next one gets it only if the earlier one has died
LockersSuccessive nomination only

How to add or change a nominee

  1. Net banking / mobile banking → Service requests → Nomination, or
  2. Submit the nomination form at the branch.
  3. Provide nominee name, relationship, date of birth, address (guardian if minor).
  4. Keep the acknowledgement; many banks print the nominee name on passbooks.
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What the family needs to claim

  • Death certificate
  • Claim form
  • Nominee's KYC
  • Passbook / FD receipts

With a nominee, banks settle claims quickly without succession certificates.

Common mistakes

  • Leaving joint accounts without nomination (survivorship may not cover every case).
  • Minor nominee without a guardian.
  • Outdated nominee after life events.

Your action checklist

  1. Keep contact details and KYC updated with your bank.
  2. Add nominees to every account and deposit.
  3. Use online NEFT/RTGS/IMPS/UPI and verify the beneficiary name before paying.
  4. Never share OTP, PIN or CVV — banks do not ask for them.
  5. Review charges in your statement and switch accounts if fees are high.
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FAQs

Does nomination replace a will?

No. The nominee receives the funds, but legal heirs per the will or law are the owners.

Can I add nominees to existing FDs?

Yes, through a nomination request for each deposit or account.

Tools & guides for this topic

Editorial note: This guide is for education and comparison. Rates, fees, eligibility and tax rules change — verify the latest terms with the bank, issuer, AMC or regulator before you act. FinancePortal does not provide personalised financial advice.

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