Changing or adding a nominee in post office schemes? Here's how much it costs

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Post office savings plans like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), and so on enable investors to nominate—appoint a person who can get the proceeds of the account if the investor passes away. The facility of nomination is free of cost if exercised at the time of opening an account, but subsequent changes can incur a minor fee.

Having the information on the process, rules, and fees may assist you to avoid confusion or delays, particularly in case of emergencies or claims.

Nomination during account opening is free of cost

If you name a nominee when you open a post office savings scheme account, there is no fee. You can name the nominee on the account opening form using the appropriate section. This is highly recommended, as it provides a hassle-free transfer of money to the nominee upon the death of the account holder and prevents legal issues or delays.

Changing or nominating after opening the account

If you had not nominated any one at account opening or need to change nominee later at some time, then you will be required to submit Form-3 to your post office branch. You can put or remove the nominations or amend using this form.

For such alterations, the Department of Posts is charged a nominal amount of ₹50. This amount has to be paid on a per-account basis, and the application can be made at the post office branch where one holds the account. The alteration will then be noted in the records of the account and will be apparent in forthcoming account statements or papers.

Modes of payment and processing time

The change fee can be made either in cash or through your associated post office savings account. Once the application is submitted together with the payment, the post office will validate the documents and reflect the updated nominee details on the system. Although the alteration is normally completed within a matter of days, it is always safe to hold onto the receipt or acknowledgment until the update has been confirmed.

Why it is crucial to update nomination

Having a nominee on record ensures that the savings are passed on easily at the time of the account holder's death. Without a nominee, the legal heirs might need to undergo a long claim procedure involving succession certificates or letters of administration issued by a court.

Also, if your nominee's information has changed (for instance, through marriage, death, or preference change), having them updated early ensures that your savings are distributed as per your current wishes.

No GST or concealed charges

The ₹50 post office fee for changes in nomination is flat and does not involve any GST or extra charges. It is a one-time, non-refundable fee for every case of alteration or addition of a nominee.

While adding a nominee at the time of account opening is free and simple, any alteration or update later incurs a minimal ₹50 charge. Nevertheless, the convenience of modifying or updating nominee details ensures flexibility and enhanced control over your savings. It's worth a small fee to ensure your money is received by the intended people without judicial obstacles.