Nomination is a very important aspect when we go for any investment. All regulators and government encourage public for opting for it. Just not adding nomination but updating nomination from time to time is very important. Further, we must understand how many nominees we can add for what investment. Here are a few :
Bank Account – Only one nomination allowed. But if it is a joint account then maximum two nominees can be added. If you have multiple bank accounts (in same or different bank), in every account you can have a different nominee.
Fixed Deposit – Again only one nominee allowed. For different Fixed Deposit number (in same or different bank) you can have different persons as nominee. Fixed Deposit and savings account can have different nominees.
Recurring Deposit – One person can be nominee. For different Recurring Deposit number (in same or different bank) you can have different persons as nominee. Your savings account can have a different nominee and recurring can have another person.
Locker – One person only allowed as nominee. In case of jointly held and operated locker, two different persons can be nominated.
Life Insurance – Multiple nominees can be added. Nominee can be family members, distant relative and even others (you have to explain why you are nominating others).
Motor Insurance – Here also you can add one nominee now a days for claim settlement.
Mutual Funds – Maximum three nominees can be added. Like Fixed Deposits, in every folio there can be different nominees. Also needless to say at different funds /schemes you can have different nominees.
DMAT – Only one nomination is allowed. Even for joint DMAT you can’t have more than one nominee.
Employee Provident Fund (EPF) – Multiple nominees permitted and percentage shares can be defined for each nominee.
Public Provident Fund (PPF) – You can have many nominations and define percentage of share for each nominee. Nominee can’t be minor here.
National Pension Scheme (NPS) – Maximum three nominees permitted. You can define percentage of share for each nominee.
Atal Pension Yojna (APY) – Only one nominee permitted. Spouse will be the default nominee under APY.
All the investments (except PPF) allow minor to be nominee.
Disclaimer: Please read and understand the details of the schemes before investing.
