How to Claim Fixed Deposit After Death?

A fixed deposit account builds up a guaranteed corpus throughout your chosen term. This is why FD schemes are popular among risk-averse investors who want to avoid market-linked investment instruments. Investors with a risk appetite also include fixed deposits as a part of their investment portfolio for diversification and to add stability to their returns.

The answer to how to claim a fixed deposit after death depends on the type of FD account. You can open a fixed deposit account individually or jointly. Joint accounts usually have clauses such as ‘either or survivor’, ‘anyone or survivor ‘, ‘former or survivor’ and ‘latter or survivor’ relating to the access granted to the joint depositors. For example, under ‘either or survivor’, both account holders can operate the account. Here’s what happens to the joint FD account if the primary account holder passes away:

The sections below delve deeper into how to claim a fixed deposit after death.

Also Read: Experience financial growth with unmatched Bajaj Finance FD Rates

FD Maturity Claims After Death

If the primary account holder passes away during the term of the deposit scheme, the nominee or legal heir can choose to continue the scheme till maturity. In this case, the fixed deposit scheme runs until maturity, and then the claimant can make a claim.

In the case of an FD maturity claim after the account holder’s death, the process depends on whether it is an individual account or a joint account.

• Individual account
  If the account is held in an individual’s name, there are two scenarios:
  • When the nominee is named, the nominee can collect the deposit amount after the account holder’s demise
  • When there is no nominee, the account holder’s legal heir can claim the deposit amount
  • The claimant must submit a filled claim form along with the relevant documents to continue the account till maturity and then get the funds credited to their account post maturity.
• Joint accounts
  Under a joint account, the account holders can decide to continue the account till maturity, depending on the type of account. If all the account holders die, the nominee can continue the account till maturity and then receive the claim. The legal heir can collect the deposit after maturity if no nominee is appointed. .

Premature FD Claims After Death

If the primary account holder dies, the claimant can also claim the balance prematurely, i.e., before the term ends. Premature withdrawal claims in the event of the account holder’s death can be made  as follows:

• Individual account
  Under this type of account, the nominee or the legal heir can request the Bank / financial institution to close the account upon the account holder’s death. They can fill out a claim form and submit it with the relevant documents. The financial institution will then process the request and release the amount to the claimant.
• Joint account
  In the case of joint accounts:
  • The surviving members can claim the deposit depending on the nature of the joint account opened
  • If all the members die, the nominee can claim the deposit
  • If all the members die and there is no nominee, the legal heir of the account holders can claim the deposit

Documents to Claim FD Amount After Death

These are the documents required to withdraw the deposit prematurely or at maturity after the account holder passes away:

• The withdrawal claim form, filled and signed by the applicant
• Identity proof of the applicant. This can be a copy of any of the following documents:
  • Voter ID card
  • PAN Card
  • Aadhaar card
  • Passport
  • Driving licence 
  • Any other photo identity card issued by a recognized  authority
• The death certificate of the account holder
• A succession certificate in case a nominee has not been named
• Bank account details of the claimant in which the amount can be credited. The claimant can submit a cancelled cheque that shows the account number and IFSC code for direct credit.

Final Thoughts

The process of claiming a fixed deposit after the death of the account holder is more straightforward if a nominee has been added. If the account holder dies, the nominee or legal heir can withdraw the FD account balance or choose to continue the account till the stipulated maturity date. Knowing how to claim a fixed deposit after the death of the account holder is vital so that the money can be accessed without delays and inconvenience. You must educate your family members about the claim process so that, in your absence, they can access the funds easily. Fixed deposits create a guaranteed corpus and can be beneficial in safeguarding your family’s future.

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