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It is natural to want to invest your money in a scheme that gives you more benefits. In such a case, every investor is looking for a reliable place to invest. Apart from the stock market, government schemes also offer some respite to the investors. Especially for senior citizens, a fixed deposit serves as a safe investment option where the principal amount is safeguarded and interest is paid out periodically. In case they pass away, there is no need to worry because the beneficial amount is given to the person who was nominated while doing the FD.
What is FD and how does it work?
FD is a kind of investment where a person puts a lump sum amount in any bank for a specific period. Fixed deposits (FD) offer to pay interest at a fixed rate for the money deposited through them. This rate of interest is fixed at the time of opening your FD account. Keep in mind that the longer the investment period, the more benefits you will reap.
What situations allow the nominee to claim the money?
In case the individual who the FD is in the name of passes away for any given reason, don’t worry, your assets are safe as well. Apart from that, the amount which is specified as nominee while doing the FD is given after some formalities are completed to that person. This nominee can be your wife, child or whoever’s name you want to put to that nominations, those are the people who will receive that amount. Also, in case the nominee is absent for some reason, there is a payment to the legal heir in your family which is your wife and children.
