Learned Mr. Sanjeev has given valuable advice. Kindly follow it.
Kindly collect the funds from your son thru authorized channels. This shall satisfy the norms pertaining to AML guidelines and proof of source of funds.
If you invest now the interest for the period up to 31st March, 2012 (say 7 months) shall be computed for filing return and thus the income tax liability shall get divided in two financial years.
Federal Bank, a class2 scheduled commercial bank under RBI is offering interest @ 10% for 333 days for general public and @10.5% for Sr. Citizens without any premature withdrawal penalty.
Kindly do the nomination. You can prefer operation terms :E&S a/c, and write on the form about payment terms: to either of the survivor as instructed by any of the applicant in E&S a/c.
While the banks are loud and clear on operation terms in forms, they are silent on payment terms and later quote their own terms which are not informed to applicants.
You can choose to prefer any bank or bank terms as suitable to you.