Ask anyone the safest hack to save money and prompt comes the answer – fixed deposits (FDs)! Bank FDs are arguably the most promising and popular instruments to save money with high interest rates and minimum risks. But what happens if the FD owner dies before claiming the amount? Who gets it and what is the process?
The depositor is always asked to select a nominee who can claim the proceeds in the unfortunate event of the depositor’s death. Now, if an FD account has such details, the bank will automatically pass the money to the nominee after due verification.
Notably, the process of nomination is only to make it easier for the bank to transfer the assets without inviting any legal chaos. But if the legal heir of the deceased is different from the nominee, the latter is bound to pass on the money to the legal heir and act merely as a guardian to the assets on his name.
If you did not appoint a nominee while opening your FD account, its alright. You can do it now or anytime before the maturity.
You need to contact the FD provider, organise and submit the relevant documents (death certificate, claim form, succession certificate, indemnity bond) for fund transfer. You can decide on continuing the FD or liquidate it before maturity.
Overall, it’ll always be more difficult to get the claim without a nominee and hence get it for all your investments.
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