11 June 2010
In terms of Saving Bank Account, Beneficiary is the LEGAL OWNER of the account holder to whom the amount in the account will be tranferred, in case anything mishap happens to the account holder. Nominee is a person , who is nominated or appointed by the account holder to whom the proceeds will be given in his absence.
This, beneficiary is appointed by law and Nominee is appointed by the account holder.
The basic definitions of Beneficiary and Nominee are given below.
- Beneficiary means an individual, institution, trustee, or estate which receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust, or other contract.
- Nominee is a person who is nominated to an office or as a candidate. Any person or organization named to act on behalf of someone else, esp to conceal the identity of the nominator.
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