What Is Nominee in Bank

A nominee in a bank is a person you choose to receive your money if something happens to you. It’s like a safety option to protect your savings for your family. Adding a nominee makes sure your bank funds reach the right person without delays.

What a nominee means

A nominee is the person you pick who will receive your account or deposit proceeds when you pass away. They act as a trustee — not exactly the owner — unless they are also your legal heir.  

Why you should pick one (quick bullet view)

• Ensures your money goes to someone you trust without long legal delays.
• Reduces confusion among family members after you’re gone.
• Makes the claim process at the bank faster when you’re not around.
• Lets you update or change the person as life changes (marriage, divorce).
• Helps avoid the account becoming “unclaimed”-status.  

Who can be your nominee and when you should update

You can appoint your spouse, children, parents or any trusted adult. If your nominee is a minor, you’ll have to assign a guardian.  

Here’s an example:

Example: Meera opened a savings account and put her father as nominee. Later she got married and changed her surname. She then updated the nominee to her husband, so that if something happens, her husband gets the proceeds and can use them for their child’s education. Quick tip — keep nominee details updated with major life-events.

Your nominee vs your legal heir

It’s important to know: the nominee is not always the same as the legal heir. The nominee holds funds until the legal heir(s) are determined.