Fixed deposits (FDs) are one of the most secure ways to grow your money with guaranteed returns. But what happens if the depositor passes away before maturity? This is where the nominee vs legal heir debate becomes critical. Knowing FD interest rates is important, but equally important is knowing who inherits the deposit. Let’s break this down simply.
What is the meaning of a nominee
A nominee in banking terms is like a caretaker of your FD. The nominee is authorised to claim the FD proceeds if the account holder passes away. However, being a nominee doesn’t make them the owner of the money. They are trustees—responsible for ensuring that the proceeds eventually reach the rightful legal heirs.
Bajaj Finance FD offers an easy online nomination facility, ensuring your loved ones can claim the proceeds smoothly without long legal procedures. Open an FD account and start earning up to 7.30% p.a. returns.
What are legal heirs
Legal heirs are individuals entitled by law (or through a will) to inherit the deceased’s assets, including FD proceeds. For example:
As per Hindu Succession Laws, a man’s assets pass on to Class I heirs (spouse, children, mother) if there’s no will.
A woman’s assets are equally divided between her husband and children.
Unlike nominees, legal heirs are the actual owners of the FD maturity proceeds.
By investing in a Bajaj Finance FD, you can secure your heirs’ future with assured interest rates up to 7.30% p.a., creating a steady safety net. Book FD.
