These days, having a bank account is important. Irrespective of whether you have a joint account or an account in your name only, what matters is having an account where you can deposit cash. It would be best if you did not keep your savings at home, as doing so involves several risks. Hence, it is best to put your savings in a bank, protecting you from theft. But what happens to the money in the event of your death? This is why it is important to have a nominee for bank account.
Life is uncertain, and you can never be sure about the future. As such, you must be prepared to handle any uncertain outcomes. Your bank account holds the money you have saved over a period of time. Thus, you will not want it to fall into the wrong hands. This is why all banks offer the option of naming a bank nominee. Read on to learn more about what is nominee for a bank account is and why you must have one.
What is Nominee for Bank Account?
When you open a new bank account, you can name a bank nominee. A nominee for bank account is the individual who will, upon your death, receive the funds in your bank account. The person you have named as a bank nominee has all the rights to the money in your account without the need for a court order. If you do not name a nominee for your account, the bank will place a lien on the money until someone gets a court order or succession letter and submits it to the bank.
If you did not add a nominee for bank account at the time of account opening, you can do it later. The process is simple and takes only a few minutes. No additional documentation is required for this process.
Here are some key aspects regarding a bank nominee:
- Your bank nominee can be your spouse, mother, father, child, or sibling.
- Most banks now insist on adding a nominee for bank account and lockers. Hence, you must name a person you can trust with your money and assets.
- You can cancel a nomination or add a new nominee as you wish.
- If you are naming a minor as your bank nominee, you must also give the legal guardian’s details. As this person will have the money till the minor is of age, so choose wisely.
- You can only name one nominee for one bank account. But you can name separate bank nominees for different bank accounts and lockers.
- The bank nominee will get the money only in the event of your death.
How to Add a Nominee for Bank Account
If you have not named a nominee for bank account, you must do so as soon as possible. This will save you from a lot of problems later on.
To add a bank nominee, follow the steps below:
- Visit the base branch of your bank, i.e., where you first opened the account, as they will have all your documents.
- Reach out to the manager and put your request in writing.
- The manager may ask for a valid ID proof to verify your identity. So, make sure you carry an ID proof like an Aadhar, voter ID, or passport.
- The manager will give you Form DA1. This is the form to add a new bank nominee.
- Fill out the form and ensure all the details are correct.
- Sign the form and submit it to the manager. You may also need to give a self-attested copy of your valid ID proof.
- It will take a few days for the bank to add the nominee for bank account.
If you want to cancel a nominee, you will have to fill out the form DA2. If you want to change the bank nominee, form DA3 is required. The remaining process will remain the same.
- You can also add a bank nominee online. To do so, ensure that you have internet banking enabled on your bank account.
- Log on to your net banking account. Here, you will have to select the “Account Update” or “Profile Update” option.
- Now you can see the link for “Add a nominee” if you have not named any yet. Click on this link.
- Now, you can enter the name of the person you want to name as the nominee. You will also have to specify the relationship you have with that person.
- Check the details once again, and then click on the submit button.
- You will need to enter an OTP that has been sent to your mobile number to verify the request.
- You will get a reference number on your phone with the details of the update request.
- The process will take a few days, and the nominee’s name will appear in your bank account details.
You can also cancel a nomination or change a nominee using the same steps. You can follow the offline process if your net banking does not show this option.
To ensure that your money and assets are in the hands of the right person, make sure you name a nominee for bank account soon. This is a very useful financial tip that will help you in the future.