Can fixed deposit be transferred to another person? I want to transfer it to my wife.
When you open a Fixed Deposit account at a bank under your name, banks generally do not let you transfer the funds in the deposit account to another person.
As per regulations, FD is a non-transferable investment. This is because the bank links your FD with your unique KYC details. Only the original investor (you) can withdraw it.
To answer your query to can I transfer an FD to another person, I would like to suggest to you some alternate methods:
- Joint FD Accounts: Check if your FD account is joint and is under an ‘Either or Survivor’ clause. Thus, any of the joint holders can withdraw funds upon maturity.
- Transfer between Branches: You can transfer your money invested in an FD of a bank from one branch to another. You can do it by making a transfer request to the branch manager.
- Premature Withdrawal: You can choose to close your FD account early. Withdraw the funds and deposit them into your preferred person’s account. However, keep in mind the penalty for early withdrawal, which ranges from 0.5% to 1%.
Adding Nominee: A nomination allows a smooth transfer of the corpus of the fund in case the account holder passes away. Therefore, ensure that you add a nominee to your FD account when creating it.