Fixed Deposit Death Claim Process Explained

Losing a loved one is always tough and managing his finances after his death is more difficult. What would happen if the primary account holder dies before maturity. Losing a loved one and then handling these financial matters become stressful. It is important to know the smooth claim process of a fixed deposit. In this blog, we will discuss how to claim a fixed deposit after death.

How to Claim a Fixed Deposit After Death?

When an FD account holder dies before maturity interest earned with principal is claimed by the nominee or legal heir. The process of claiming the FD after death is different for different accounts-

Single Account Holders Fixed Deposit After Death

Here is what happens to single account holders fixed deposits after death-

Nomination

In case of fixed deposits with nomination, the nominee needs to submit the death certificate in order to withdraw funds from the bank account. If he wants to continue the same account, the nominee also needs to provide an identity proof after the death claim.

Without nomination

Fixed deposits without nominations can be claimed by the legal heirs that can be family members after the death of the account holder. The legal heir has to submit the death certificate or will of the deceased person in order to withdraw funds from fixed deposit after death. This is required if there is no nominee assigned by the accountholder before his death.

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Joint Account Fixed Deposit After Death-

Here is the claim process after account holders death of different types of joint account-

Latter or survivor

In such a joint account if the primary holder passes away the second holder can control the fixed deposit. The secondary holder becomes the primary holder with the nominee who is entitled to amount and interest once both the account holders die. If the accountholder dies without assigning a nominee then the legal heir is entitled to full FD claim amount.

Former or survivor

In this joint account if the primary account holder dies in such case the second holder gets the full right on fixed deposit. The second holder is required to have a death certificate of the former account holder in order to initiate the claim of a fixed deposit after death. But if both joint account holders die then the assigned nominee can have a fixed deposit death claim. If no nominee is assigned then the legal heir can claim the funds. 

Anyone or survivor

If there are more than two joint holders then the remaining holders are entitled to the funds. In case all the holders die then the nominee gets the funds. But If no nominee is assigned then the legal heirs of the deceased are entitled to the full claim amount of the fixed deposit after death of the account holder.

Either or survivor

In some cases if one account holder passes away then the balance funds are paid to the survivors. The nominee is handed over the amount on the demise of all the account holders. In case no nominee is assigned then the legal heir can claim the funds of the fixed deposit after death of the account holder. 

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What is the Process of Claiming Fixed Deposit After Death?

Here is the process of claiming fixed deposits after death-

• Visit the bank branch
• Contact the FD issuer
• Submit all required documents such as claim form, death certificate, ID proof like Aadhaar or pan card etc.
• Once the documents are verified, banks will close the FD account and the interest till the date is added to the final amount.
• The funds will now be disbursed to legal heir bank account or issued a cheque or demand draft.

Conclusion-

Dealing with a fixed deposit after death of a loved one can be emotionally and financially overwhelming, especially when you're unsure of the process. However, understanding how claims are handled, whether there's a nominee, it's a joint account, or there are legal heirs, can make the process significantly easier. Always ensure proper documentation, update nominee details regularly, and inform family members about your financial plans. This not only helps in smoother fund transfer but also reduces the legal complexities during already difficult times. Being aware and prepared ensures that your investments continue to serve their purpose, providing financial security to your loved ones.