Can Fixed Deposit be Transferred to Another Person?

conditions like joint accounts, nomination, and premature closure for FD reassignment.

Wondering can Fixed Deposit be transferred to another person. Fixed Deposits (FDs) are popular investment instruments where individuals deposit a lump sum amount for a fixed tenure and earn interest.

How to Transfer Fixed Deposit from One Person to Another?

Generally, FDs are non-transferable, meaning the ownership of an FD cannot be directly transferred from one person to another during its active tenure. However, there are certain conditions and scenarios where aspects of an FD can be transferred or reassigned,

• If an FD is held jointly, the primary holder and the co-holder(s) share ownership. Upon the death of the primary holder, the FD automatically transfers to the surviving joint holder(s).

• An FD account holder can nominate a person who will receive the proceeds of the FD upon the account holder's death. The nominee is not the owner during the FD's tenure but is entitled to the FD amount after the death of the account holder.

• An account holder can choose to prematurely close an FD and withdraw the funds. After withdrawing, the funds can be given to another person, who can then open a new FD in their name. This process incurs a penalty for premature closure, which varies by bank.

• In some countries, FDs can be gifted to another person, which involves closing the existing FD and opening a new one in the recipient’s name. The account holder needs to comply with the bank’s procedures and possibly provide a gift deed.

• Different banks have specific policies regarding the transfer or reassignment of FDs. It’s crucial to consult with the bank to understand the detailed procedures and any legal requirements.

Financial regulations often dictate the terms and conditions under which FDs can be transferred or reassigned. Compliance with these regulations is mandatory. This is all about can Fixed Deposit be transferred to another person.

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