Who am I?
I could be your friend or a member of the family, or anybody else you can trust. You need to choose me with care as I need to be reliable enough to take care of your money deposited with the bank in case of your death. When you write my name under the “nominee” square, you make me the custodian of the money in your savings account or fixed deposit.
What’s my role?
Your bank will contact me in case you die for further instructions or to operate the account. I am the point person the bank would need to get in touch with after your death.
Do I have rights?
Though I am an important person, I have no rights over your money unless you have specified it in a Will or I happen to inherit that money. I am just a custodian of your savings. The only purpose I serve is to be there for the bank to get in touch with when you die so that your deposits can be handed over to a genuine person.
How do you appoint me?
At the time of opening a savings account or fixed deposit, the bank would ask you to fill out a form, which will ask you to mention my name. I need not be related to you. But, at the time of claiming your savings, I will have to give proof of my identity.