Can a Fixed Deposit be Transferred to Another Person in India?

If you’ve ever opened an FD and later thought, ‘I should just move this FD to my spouse/daughter/parent,’ you’re not alone. Deposits are a huge part of how Indian households save. RBI’s household savings publications consistently show deposits as a major component of financial savings.  
[Source: Reserve Bank of India] 

But here’s the catch: in most banks, an FD is not like a movable asset you can simply ‘reassign’ mid-way. 

So… can a fixed deposit be transferred to another person? 

In everyday banking terms, a fixed deposit be transferred to another person directly (i.e., change the owner’s name on an active FD) is usually not allowed. Banks treat the FD as a contract issued in the depositor’s name and changing ownership midway typically means closing that contract and creating a new one. 

FD Maturity snippet: ‘FD ownership can only change after maturity.’ 

That line is the simplest way to remember the rules in practice. At maturity, you can choose where the maturity proceeds and that’s when a ‘change of hands’ becomes straightforward. 

The practical ways people ‘transfer’ an FD  

1) Close the FD (or do premature closure) and open a new FD in the other person’s name 

This is the most common workaround when someone asks: can we transfer FD from one person to another. 

What happens: 

• You request premature closure (if the FD hasn’t matured). 

• The bank will credit the amount (with a penalty or reduced interest rate for the shorter term, depending on the scheme). 

• Then you open a new FD in the new person’s name. 

Let’s understand with an example: 

Rohit has a ₹2,00,000 FD at 7.2% interest for 24 months. After 10 months, he wants it in his daughter’s name for her college education. The bank may permit premature withdrawal but will charge according to the bank’s premature withdrawal scheme, then Rohit opens a new FD in her name. 

Tip: This is a very clean process, but you must check the terms for premature withdrawal because your earned interest may decrease. 

2) Use nomination (for transfer on death, not during your lifetime) 

Nomination is supposed to facilitate claim settlement for the family in case the depositor dies. The RBI’s 2025 Directions specifically state that banks must provide nomination, register nominations correctly, and even indicate the nomination status on term deposit receipts.  
[Source: Reserve Bank of India] 

Important clarification: A nominee is not the owner during your lifetime; it’s a facilitation process for later settlement. 

Thus, yes, a fixed deposit can be transferred to another person via nomination only in the context of death claim settlement and not as an ‘ownership transfer’ in the middle of the term.  
[Source: Reserve Bank of India] 

3) Add a joint holder (only if your bank allows it and often not on an already-existing FD) 

Some banks allow FDs to be opened as joint deposits (Either/Survivor, Former/Survivor, etc.). But converting an existing single-account FD to a joint FD in the middle of the term is bank-dependent and often not possible without closing and re-opening. 

If your aim is convenience for your family, joint holding may be more advisable than attempting to ‘transfer.’ 

Steps to Transfer an Existing FD 

When customers look up steps to transfer an existing FD, they are likely trying to accomplish one of 2 things: (a) transfer the ownership of the money, or (b) transfer the FD itself (branch/account change). 

Here’s a bank-approved, risk-free checklist: 

1. Determine purpose: ownership transfer or branch/account transfer. 

2. Inquire about premature closure terms: varies by bank and FD scheme. (Reserve Bank of India) 

3. Perform KYC for transferee (if opening a new FD): 

1. Aadhaar 

2. PAN 

3. Address proof 

4. Photograph 

5. (Any other bank documents) 

4. Submit transfer request: close FD + transfer proceeds to account + open new FD in transferee’s name. 

5. File away: FD receipt, closure notice, new FD notice. 

That’s the basic steps to transfer an existing FD that most people actually need to do in practice. 

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FAQs on FD Transfer 

1) Can I transfer my FD to my daughter? 

You can’t simply transfer ownership of your FD to your daughter. The usual procedure is premature close → transfer proceeds → open new FD in her name. Or, you can keep your FD and make her your nominee (helpful for future settlement, but not an actual ownership transfer).  
[Source: Reserve Bank of India] 

And don’t forget: ‘FD ownership can only change after maturity.’ 

2) Can we transfer FD from one branch to another? 

Usually yes, operationally, many banks can handle the transfer of deposits to other branches because of core banking. In practice, you can ask the bank to “transfer” or “attach” the FD to your new home branch/service branch. This is not an ownership transfer; it’s a servicing transfer. (The process and forms will differ for each bank.) 

3) Can I transfer FD to another account in the same bank? 

If you are asking, ‘Can I transfer the FD money to another account?’, this is usually done on maturity (you choose the maturity credit account), or premature closure. For other transfers between accounts, banks allow intra-bank transfers through normal channels once the money is in a savings/current account.  
[Source: SBI Bank]