Being stagnant is not good for your mind, body, or money. You can keep your mind and body active by engaging in physical activities and taking up a profession. You can keep your money working by investing. It is a smart tactic for achieving your goals and coping with inflation. Hence, you should actively invest.
A Recurring Deposit is a popular investment option among all investors, especially salaried ones. It lets you make regular deposits and earn interest on them. It is a fixed investment option that instils financial discipline in you and facilitates systematic goal fulfilment. This article explains about a nominee, why assigning one for RDs is essential, and how you can change it in the future.
Who is a nominee? Why should you assign one for an RD?
A nominee is someone who receives the investment proceeds upon your demise. You can assign your parents, siblings, spouses, or children as your nominee. Some banks have made it compulsory to assign a nominee to your Recurring Deposit, while others have it as an optional decision. Either way, you should assign a nominee to your RD. It financially secures your loved ones’ future irrespectively.
It facilitates hassle-free transfer of the investment proceeds to your loved ones upon your demise. A few banks let you assign more than one nominee to your RD. This ensures your loved ones get what belongs to them. For example, if you have two children, you can assign them both as nominees. They can equally distribute the investment proceeds among themselves or in any other way mentioned in your will.
Use the RD calculator to determine the total investment proceeds they will receive upon maturity. The calculator is readily available on every bank’s website. Note that if you do not mention a nominee, the bank considers the legal heir for the transfer of the investment proceeds. However, your legal hire must undergo a procedure to claim the investment even though it is rightfully theirs.
How can you change your RD nominee?
Suppose you have already assigned a nominee to your RD. However, you want to change the nominee for some reason. It is possible to do so. You need to complete a simple procedure with the bank to change your RD nominee. You need to click on the investments tab, select Recurring Deposit, and click on add/change nominee. You need to fill out the nominee’s personal and bank details.
You may also need to submit their Know Your Customer documents. The new nominee gets added immediately. You can also change the nominee by visiting the nearest bank branch. The procedure remains essentially the same as the online procedure. Once done with all formalities, the bank changes your nominee with no further questions.
