Claim Fixed Deposit
Many people have opted to invest in fixed deposits, one of the most common types of investment. Low risks and a guaranteed return on investment are associated with investing in an FD account. When compared to regular savings accounts, some banks offer the highest FD interest rates on FD accounts. Depending on your option, you can open the account jointly or as a single-holder account.
Sometimes, the person who holds the FD account may pass away before the fixed-term loan matures. So, family members should know the procedure for claiming the principal account and the interest the account has accrued. The process to Claim Fixed Deposit the amount will vary based on your FD account type.
Listed below is the process to claim the FD account if the deposit holder dies
Joint Accounts
There are several ways to Claim Fixed Deposit or the FD amount, depending on the type of joint account. Here are the procedures for claiming joint FD accounts:
Latter or Survivor
In this joint account, the second account holder will become the prime holder of the FD account, while the other account holder will also manage the highest FD interest rates. Upon the death of the second holder, the first holder will be able to access the funds. The nominee will receive the principal amount and accumulated interest when both depositors die. The legal heirs can access the FD funds if no nominees have been added to the account.
Former or Survivor
In this type of account, when the first holder of the account passes away, the second holder of the account will be able to withdraw the FD amount with highest FD interest rates. To gain access to the funds, the second account holder must submit the death certificate of the first account holder. If both account holders die, the nominee can withdraw the funds from their accounts. In the absence of a nominee, the legal heirs of the deceased may withdraw the funds.
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Anyone or Survivor
When an FD account with highest FD interest rates has more than two holders, the account balance will be transferred to the survivors if any holder passes away. The nominee will receive the amount when all the account holders pass away. The funds will be distributed to the heirs of the deceased account holder if one or more of the account holders have passed away without nominees. The funds come to the legal heirs of the account holders if all the depositors die and no nominees have been added to the account.
Either or Survivor
In this account, if one of the account holders dies, the remaining balance will be paid to the alive account holder. The nominee will receive the funds if all the account holders have passed away. If no nominees are added, the funds will go to any legal heirs.
Single Account Holders
The following procedures apply to withdrawals from single-holder FD accounts with highest FD interest rates:
Without nomination
In such a circumstance, the relatives of the account holder must submit either a succession certificate or a will along with the account holder’s death certificate. The legal heirs will access the money if no nominees have been added.
With nomination
If a nominee has been added to the account, they must submit the account holder’s death certificate to withdraw the funds. The nominee must provide proof of their identity and the death certificate.
Final Thoughts
It is, therefore, crucial to choose a financial institution providing best rates of Fixed Deposit, who is sympathetic to the situation and can manage fixed deposits transparently after the death of the FD account holder.
In many cases, depositors and their nominees find it difficult to meet Claim Fixed Deposit all the bank’s requirements because of the process’ complexity. Moreover, due to the circumstances, individuals cannot access the funds of the deceased when the funds are desperately needed.
