How to Claim FD Amount if Account Holder Passes Away?
A common investment option that many individuals opt for is a Fixed Deposit (FD). Investing in an FD account comes with low risks and a guaranteed pay-out. FDs offered by certain banks come with higher interest rates when compared to regular savings accounts. The account can be opened either jointly or as a single-holder account.
Certain times, the main account holder may pass away before the FD matures. In such cases, it is important that family members know the process to claim the principal account as well as the interest that has been accumulated. Depending on the type of FD account, the process to claim the amount will vary.
Process to Claim the Fixed Deposit Amount
Claiming FD from Joint Account after Death of One Holder
Depending on the type of joint account, the procedure to claim the FD amount will vary. Given below are claim procedures for commonly-opened joint accounts:
- Latter or Survivor - Under this type of joint account, the FD account can be operated by the second account holder and he/she will become the prime holder. The first holder can access the funds only if the second holder passes away.
- The nominee will get the principal amount and the interest that has been accumulated only if both depositors die. In case no nominees have been added to the account, the legal heirs can access the FD amount.
- Former or Survivor - Under this account, the second holder can withdraw the FD amount only if the first holder passes away. The first account holder's death certificate must be submitted by the second account holder to access the funds.
- In case both account holders have passed away, the nominee can withdraw the funds. If no nominee has been added, the FD amount that is available can be withdrawn by the legal heirs.
- Anyone or Survivor - In case the FD account has over two holders, the balance that is available along with the interest that has been accumulated will be provided to the survivors if an account holder/ holders passes away.
- The nominee will be given the amount in case all account holders die.In case one or more account holders have passed away and no nominees have been added, the depositors who are alive and the legal heirs of the account holders, who have passed away, will receive the funds.
- The legal heirs of the account holders will receive the funds in case all depositors die and no nominees have been added.
- Either or Survivor - Under such an account, in case one of the account holders die, the balance that is available in the account will be paid to the account holders who are alive. The nominee will receive the funds only if all the account holders have died. In case no nominees have been added, the amount will be given to the legal heirs.
Claiming FD from Single Account After Death of Holder
The process to withdraw the FD amount will differ based on the type of account being held. Here are the withdrawal procedures for commonly-opened single-holder FD accounts:
- Without nomination - Under such cases, the succession certificate or the will must be submitted along with the account holder's death certificate by the family members. In case no nominees have been added, the legal heirs will have access to the money.
- With nomination - In case a nominee has been added, he/she must submit the death certificate of the account holder to withdraw the funds that are available in the account. Along with the death certificate, the nominee must provide his/her proof of identity.
It is important to choose the right FD account so that the withdrawal process can be easier. Individuals must inform the nominee/nominees about the terms of the account as well.
FAQs on Fixed Deposit Claim after Death
- Can I appoint more than one nominee for my FD account?
No, regardless of whether your FD account is individual or joint, you cannot appoint more than one nominee. However, you can have different nominees for different FD accounts.
- How is the payment from the deceased FD account distributed?
The nominee will have to provide the details of the deceased FD account holder including bank details and submit the necessary documents, so that the payment from their FD account can be disbursed.
- Can the nominee continue FD after the death of the account holder?
Yes, the nominee can continue FD after the death of the account holder.
- Is it compulsory to appoint a nominee for FD?
It is not compulsory to appoint a nominee for FD. However, it is recommended you do appoint a nominee so that the money is transferred to the account of the person entitled to have your money in case of your death.
- How much time will the bank take to settle the claim for FD after the death of the account holder?
The bank will settle the claim within 15 days of the date of the death of the account holder.
- Can an FD account holder appoint a nominee if they did not do so in the beginning?
Yes, an FD account holder can appoint a nominee anytime.
- Can an FD account holder change the nominee?
Yes, the FD account holder can change the nominee anytime as per their convenience.
- Can I appoint my father as nominee for my FD?
Yes, you can appoint your father as nominee for your fixed deposit.
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