How to get a Savings Bank Account - II - Account Nominations

The process and the benefit

You are entitled to make a nomination for your savings bank account. Generally, the printed account opening form contains a nomination clause. Some banks may use a separate form for this purpose linking it to the savings bank account. To make nomination, you have to:

(a) mention the name of the nominee in the nomination clause in the account opening form / appropriate form;

(b) mention the relationship of the nominee with you;

(c) if it is a joint account, all account holders must sign the nomination clause;

In the event nomination has been made, the bank would pay the balance in your account to the nominee in the event of the death of the account holder/s.

Nomination has many advantages. It makes life easy for the account holders, their legal heirs and also the bank. In the absence of nomination, the legal heirs have to submit specified succession documents in order to claim the money. It involves time and hassles for successors to obtain these. In addition, it takes several days or some times weeks, depending on the amount of the claim and the degree of complexities for the bank to settle legal claims. Nomination at once dispenses with such difficulties. In the event of unfortunate death of the account holder/s, the bank can promptly pay the amount to the nominee.

Minor as nominee

The nominee has always to be an individual. However, a minor individual can also be made a nominee. In that case, you have to mention in addition to the nature of relationship, also:

(a) his or her date of birth;

(b) the name of his or her legal guardian;

At the time of making the nomination, it is usually enough that you write the nominee’s name, address and other particulars and then sign. The nominee need not be present and sign in the form. However, the act of making the nomination must be witnessed, normally by two persons

Suppose you have not made any nomination at the time you opened the account. You can always approach the bank and do it at a later date as well.