A payable-on-death (POD) beneficiary is a person or organization you name to receive the funds in your account when you pass away. It is a simple, free way to decide in advance where the money goes.
While you are alive: you keep full control of the account. The POD beneficiary has no access to it and no rights over it — you can deposit, withdraw, close the account, or change the beneficiary at any time.
When you pass away: the funds pass directly to the named beneficiary once they provide identification and a certified death certificate. The account does not go through probate, so the beneficiary typically receives the money faster.
Why members use a POD designation:
- It is free and quick to set up.
- It avoids probate for that account.
- You stay in complete control during your lifetime.
POD vs. a joint account: a joint owner has full access to the account right now; a POD beneficiary has access only after the account holder passes away. See how to add a joint account holder or authorized user.
What a POD designation does not do: it is not a substitute for a will or full estate plan, and it does not give anyone authority to act on the account while you are alive — that requires a power of attorney.
To set one up: contact RMO or visit an RMO Retail Center to add or update a POD beneficiary, and keep the designation current after major life events.