How to Claim a Fixed Deposit After the Account Holder’s Death?
When an FD holder dies, the money in the FD can be claimed by a nominee or a legal heir (in the absence of a nominee or when the nominee passes away before the account holder). First, you need to collect some important documents. These include the death certificate of the account holder, identity proof of the person claiming the money, and any forms the bank asks for. Then, the bank verifies all the documents. If everything is fine, the money is transferred to the claimant's bank account. This process ensures that the saved money reaches the right person. It's always helpful if a nominee was added to the FD when it was opened because that makes the claim process easy.
Holding Patterns and Nominees in an FD2
- Individual Account with Nominee: The nominee needs to submit the death certificate and ID proof along with other documents as required by the bank. After verifying the documents, the bank gives the FD money to the nominee.
- Individual Account without Nominee: If there is no nominee, the legal heir must provide a death certificate and a succession certificate to claim the FD.
- Joint Account - Either or Survivor clause: If one person dies, the other FD account holder will take over the role of the primary holder and manage the FD. If both pass away, the nominee gets the money.
- Joint Account - Former or Survivor clause: If first person to handle the account passes away, the second person can claim the money. If both are no more, the nominee gets it.
- Joint Account - Anyone or Survivor clause: If more than two people hold the FD, the survivors get the money. If all have passed away, it goes to the nominee or legal heirs.
FD Maturity Claims After the Death of the Account Holder2
If Nominee is Present: The nominee submits the required documents like the death certificate and ID proof. The bank verifies and pays the FD amount.
If No Nominee is Present: The legal heir must submit legal papers like a succession certificate to prove their right to the FD amount.
If it’s a Joint Account: The second account holder can get the money . If both holders pass away, the nominee claims the amount.
If No Joint Holder or Nominee: The legal heir must prove their relationship and legal rights and submit a succession certificate.
Each bank may have small differences in the process, so it’s best to ask the bank what they need.
Process to Claim the Fixed Deposit Amount[2]
Collect Documents: Death certificate, ID proof, original FD receipt, and KYC documents along with other documents required by the bank.
Fill the Claim Form: This form asks for your details and information about the FD.
Submit to the Bank: Take the documents and form to the bank.
Bank Checks the Documents: The bank looks at all the papers to confirm everything is correct.
Money is Transferred: If all is in order, the FD money is sent to your bank account.
It’s best to keep these documents ready and to know the type of FD account (individual or joint). This makes the process quick.
Conclusion
Losing a loved one is never easy, and handling their finances can be confusing. But knowing the steps to claim an FD can make things simple. If you’re wondering, "Can FD be transferred to another person?", the answer is yes—with the right documents and process, the money goes to the rightful person.
FAQs
Who is entitled to claim the FD amount after the depositor’s death?
The nominee person or the legal heir ( if the account holder is no more and the nominee dies before the account holder ) can claim the FD amount when the account holder passes away.
How can a nominee claim the fixed deposit?
The nominee should go to the bank with the death certificate of the FD holder, ID proof, a claim form along with other documents as required by the bank to receive the amount in his or her account.
What documents are required to claim a deceased person’s fixed deposit?
You may require the death certificate, FD receipt, your address and ID proof, KYC documents, a claim or legal certificate along with other documents as required by the bank.
How to close or transfer an FD after the account holder’s death?
Visit the bank with all documents and submit a claim form. After verifying, the bank may transfer or close the FD based on your request.
What if there is no nominee mentioned on the FD?
If no one is nominated, the bank provides the FD money to the legal heirs, like children or spouse, after they show valid legal documents such as a succession certificate from the court.
Can the nominee continue the FD till maturity (post the death of the account holder)?
The nominee can withdraw the money prematurely. However, certain banks permit carrying the FD forward if the nominee consents and completes the forms.
Do banks allow the premature withdrawal of FD by nominee if the account owner is deceased?
Yes, the majority of banks permit nominees to withdraw the money ahead of the expiration of the FD, in case the account holder is no more, but they might receive a lower interest rate if withdrawn early.
Is the maturity amount taxable if received by a nominee or legal heir?
No, the maturity amount is not taxed once again. But any interest accrued after the death of the FD holder can be taxed in the hands of the recipient.
What if the deceased had a joint FD account?
If it's a joint FD, the surviving individual (joint holder) can receive the money. If both account holders expire, the nominee or lawful heir can receive it.
References:
[1]https://www.rbi.org.in/commonman/english/Scripts/PressReleases.aspx?Id=106
[2]https://www.livemint.com/money/personal-finance/how-to-claim-fd-amount-in-case-of-the-death-f-account-holder-a-comprehensive-guide/amp-151674030718530.html
An ISO 9001:2015 
