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What is a Beneficiary Account?
Posted on Monday, September 23rd, 2024 | By IndusInd Bank
What is a beneficiary account? Are you curious about this question and looking to understand it? Before diving deep into the meaning of a beneficiary account, it is crucial for you to understand what a beneficiary is.
The term ‘beneficiary’ refers to an individual or entity set to receive particular benefits or gains from specific financial management.
Beneficiary meaning in bank context is a person who stands to benefit from specific monetary transactions. Beneficiaries are often seen in aspects such as retirement accounts, insurance policies, banking transactions and savings accounts.
Let’s understand the meaning of beneficiary in detail and the reasons for adding one.
Understanding a Beneficiary
In savings account context, a beneficiary is an individual designated to receive the funds in your account on certain conditions, such as your unfortunate demise. This designation ensures your financial assets are transferred smoothly to the beneficiary without any complicated legal procedures.
For instance, if you have a savings account with IndusInd Bank, you can nominate a beneficiary who will have the complete access the funds in your bank account in case of an unexpected event. This offers mental peace and ensures the financial future of your loved ones is taken care of without delay.
Reasons to Add a Beneficiary to a Savings Account
Here are some reasons why you should consider adding a beneficiary to your Savings Account:
1. Financial Security of Loved Ones
Adding a beneficiary ensures your family members have instant fund access during exigencies. This can be critical in times of sudden unexpected expenses such as a child’s tuition fees, repayment of EMIs, or meeting daily living expenses.
2. Ease of Transfer
The designation of a beneficiary simplifies the procedure of transferring funds, avoiding the length and stressful legal processes involved in settling an estate.
3. Estate Planning
Having a beneficiary is a crucial part of estate planning. It ensures your assets are disseminated as per your wishes, providing clarity, and lowering potential disputes among heirs.
4. Accessibility and Convenience
Beneficiaries can access funds without any hassle, ensuring high financial stability.
Besides adding a beneficiary to your savings account, a suitable savings account with nifty features is essential. This can help maximise your savings potential and provide additional financial security for your dependents.
One such savings account is the Indus Select Savings Account by IndusInd Bank. It allows you to add beneficiaries online and offers a host of benefits that make it easier to manage finances.
Here’s a look at its essential features –
| Feature | Benefit |
| Free zero-balance savings account for your family | Group accounts of up to four family members under a zero-balance account and enjoy relationship benefits across all grouped accounts |
| Discounts on locker | 50% off on small and medium lockers for the first year and 35% off on lockers from the second year onwards |
| Free movie tickets | Buy one get one free movie ticket through BookMyShow |
| Complimentary domestic airport lounge access | Get free lounge access at domestic airports with your Signature Select Debit Card |
| Unlimited free ATM withdrawals | Enjoy unrestricted, complimentary access at all ATMs domestically |
| Free Demat account | Avail AMC waiver on your IndusInd Bank Demat Account for one year |
| Loan discount | Get a discount of 10% on loan processing charges |
Also Read: Can One Family Share the Same Savings Account?
Ending Note
Adding a beneficiary to your savings account is a smart approach that ensures the financial well-being of your dependents and loved ones, simplifies fund transfer processes, and aids in effective estate planning. In addition to adding a beneficiary to your savings account, you must choose an account that offers excellent benefits.
While savings accounts are of different types including a zero-balance savings account, one with features that elevates your banking experience can come in handy. Indus Select Savings Account by IndusInd Bank is one such account you can select. This account stands out due to its holistic benefits, making the process of accessing and managing funds more convenient and smoother.
So, why wait? Secure your family’s future today with the Indus Select Savings Account by IndusInd Bank. Apply now!
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
