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How Can Nominee Claim a Fixed Deposit After Holder’s Death
Posted on Friday, February 23rd, 2024 | By IndusInd Bank
When we talk about planning our finances, we usually focus on making more money, keeping risks low, and securing what we own for the future. But sometimes, we forget about something important – what happens when the person who owns the account passes away. Dealing with the passing of a loved one is difficult, and understanding what to do with their financial accounts can add to the stress. This blog simplifies the process for both joint and sole accounts, emphasising clear communication and proactive steps. Let’s ensure a smooth transition, securing financial legacies for our loved ones’ futures amidst life’s uncertainties.
Single Holder FDs Claim Procedure
For Single Holder FDs with IndusInd Bank, you can visit the nearest IndusInd Bank Branch with all required documentation. Nominees can expect to receive both the principal amount and accrued interest after completing all the formalities.
Joint Accounts FDs Claim Procedure
The procedure for FD nominee rules for Joint Accounts depends on the following:
Latter or Survivor:
In this scenario, the second account holder assumes primary ownership. The nominee receives the funds only if both depositors are deceased.
Former or Survivor:
Here, the second holder can claim the Fixed Deposit if the first holder passes away. The nominee becomes eligible to claim if both holders are deceased.
Anyone or Survivor:
In this case, survivors receive the balance if one or more account holders pass away. The nominee receives the funds if all account holders are deceased.
Also Read: 7 Reasons to Invest in Fixed Deposits
Navigating FD Maturity and Premature Claims After Death
For an Individual Account:
With Nomination:
If a nominee is named, they must submit necessary documents such as a death certificate and comply with Know Your Customer (KYC) requirements to claim the maturity value of the FD.
Without Nomination:
In the absence of a nominee, legal heirs need to furnish supporting documents, a death certificate, claim form, and adhere to KYC compliance to claim the FD maturity amount.For Joint Accounts:
| Either or Survivor: | The surviving individual can carry on with the FD Account by providing the death certificate of the primary holder. They have the option to maintain the account in the same name until maturity or choose to remove the deceased’s name. i.e. either or survivor in case of death |
| Jointly or Survivor: | The surviving account holder assumes ownership upon the death of the primary holder, validated by the death certificate. |
| Former or Survivor: | Similar to the Either or Survivor scenario. |
| Anyone or Survivor: | The succeeding member takes over the primary position until FD maturity, with consent from other joint holders, backed by the death certificate of the primary holder. |
Important Considerations
If all joint account holders are deceased, the nominee becomes the beneficiary as per regulations. In the absence of a nominee, legal heirs make the claim.
Appointing a nominee for all FD accounts is crucial.
Early FD Claims After Demise
For Individual Accounts:
The nominee or legal heirs can initiate premature Fixed Deposit withdrawal with appropriate documentation. The timing of withdrawal affects the interest rates applicable.
For Joint Accounts:
If the survivor wants to settle a joint account without closing it prematurely, it’s only possible if the account was set up as Either or Survivor, or Former or Survivor with a premature closure option. Without this setup, the survivor needs to submit Annexure 16, signed by all legal heirs, to settle the account.
Also Read: Short-term or Long-term Fixed Deposit – Which one is a smart option?
Ensuring Financial Security
Having a nominated individual simplifies the transition, ensuring a more seamless settlement process for both personal and joint accounts. To add a fixed deposit nominee, you can fill out the form here. Check out IndusInd Bank’s FD page for additional details, and utilise the IndusInd FD Calculator to evaluate the customised advantages aligned with your financial circumstances.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
