Answer Book question

My father has accounts in five banks. Should we consolidate them?

Consolidate the accounts, but not necessarily the deposits. Two or three active savings accounts are manageable; five dormant ones with scattered FDs, old standing instructions and forgotten nominees are a future headache for whoever has to claim them. Keep deposits spread within insured limits; reduce the number of relationships.

By Kerala Rising · ·

Short answer

Consolidate the accounts, but not necessarily the deposits. Two or three active savings accounts are manageable; five dormant ones with scattered FDs, old standing instructions and forgotten nominees are a future headache for whoever has to claim them. Keep deposits spread within insured limits; reduce the number of relationships.

Real life

After a father's death, the family finds passbooks for five banks, two of which no longer exist under those names after mergers. It takes eleven months to trace and claim all of them.

What this means

Dormant accounts become inoperative and eventually transfer to the RBI's unclaimed deposits pool. Every account needs a current nominee and a known location. Fewer, well-documented accounts make both life and death easier.

What to check

Purpose of each account Nominee on each Dormant status Standing instructions (insurance premiums!) attached to each FDs and their maturities

What people often miss

Closing an account that has an insurance premium standing instruction, causing a policy to lapse.

The Kerala / NRI angle

Bank mergers in recent years have renamed several institutions; old passbooks may refer to banks that no longer exist by that name.

An example

Five accounts → two: one for pension and expenses, one for FDs and reserve. All nominees updated. A one-page list given to both children.

When this may not be the right answer

If the father is capable and prefers his system, document it rather than force consolidation.

What to do next

List all accounts with nominees Check standing instructions Close or merge gradually

Related questions

How do I organise my parents' finances before there is an emergency? How do I find all of my father's bank accounts?

Related Kerala Rising help

Senior-citizen services · Family support

Sources and what to verify

India Post / SCSS rules · IRDAI annuity product guidance · RBI deposit insurance (DICGC) limits · Kerala Social Security Mission and Social Justice Department for pension schemes Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us your parents' rough monthly expenses, their income sources and what lump sum exists. We will help you see whether it holds up. and what to organise before there is an emergency. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Seniors › Retirement · Retirement 17

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.