Fixed deposits are a popular investment option for many individuals. They provide a safe and secure way to earn interest on savings. However, in the event of the account holder’s death, claiming the fixed deposit can be complex.
This article will discuss the steps involved in claiming a fixed deposit after the account holder’s death. We will cover the different types of claims, the required documents, and the procedures to be followed.
Introduction
Fixed deposits are an important investment tool for many individuals. They provide a fixed interest rate and are considered a safe investment. However, in the event of the account holder’s death, claiming the fixed deposit can be daunting. It is important to understand the process of claiming the fixed deposit to ensure a smooth claim process.
Understanding Fixed Deposit Nomination
Nomination is the process of appointing a person to receive the benefits of the fixed deposit after the account holder’s death. Ensuring that the nomination details are up-to-date is important to avoid any hassles during the claim process. To add or change a nominee, the account holder must fill out the nomination registration form and submit it to the bank.
Types of Claims
Understanding the different types of claims is essential to simplify the fixed deposit claim process after the account holder’s death. There are three primary types of claims, which are as follows:
Claims by the Nominee
When the account holder has nominated a person to receive the benefits of the fixed deposit after their death, the nominee is entitled to claim the deposit. Nominees must follow the specified procedure and submit the required documents to receive the deposit amount.
Claims by Legal Heirs
In cases where the account holder has not appointed a nominee or if the nominee is deceased, the legal heirs can claim the fixed deposit. Legal heirs must provide necessary documents, such as a succession certificate or probate of the will, to establish their right to the deposit.
Claims by Joint Account Holders
Suppose the fixed deposit account is held jointly with another person. In that case, the surviving joint account holder can claim the deposit after the demise of the co-holder. The joint account holder must follow the specified process and submit the relevant documents to update the account details and receive the deposit amount.
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How to Claim Fixed Deposit as the Nominee
Suppose the account holder has nominated someone to receive the benefits of the fixed deposit after their death. In that case, the nominee can claim the deposit. The nominee must provide the following documents to the bank:
- Death certificate
- Proof of identity
- Nomination registration form
The nominee must approach the bank and submit the required documents. The bank will then complete the necessary formalities and transfer the fixed deposit to the nominee’s account.
How to Claim Fixed Deposit as a Legal Heir
The legal heirs can claim the fixed deposit if the account holder has not nominated anyone and has passed away. The legal heirs must provide the following documents to the bank:
- Death certificate
- Succession certificate or probate of the will
- Affidavit and indemnity bond
The legal heirs must approach the bank and submit the required documents. The bank will then complete the necessary formalities and transfer the fixed deposit to the legal heirs’ account.
How to Claim Fixed Deposit as a Joint Account Holder
The surviving joint account holder can claim the deposit if the fixed deposit is held jointly. The surviving joint account holder must provide the following documents to the bank:
- Death certificate
- Proof of identity
The surviving joint account holder must approach the bank and submit the required documents. The bank will then update the account details and transfer the fixed deposit to the surviving joint account holder’s account.
Tips for a Smooth Claim Process
It is important to keep the required documents organized to ensure a smooth claim process. It is also important to communicate with the bank and seek legal assistance.
Conclusion
In conclusion, claiming a fixed deposit after the account holder’s death can be complex. It is important to understand the different types of claims, the required documents, and the procedures to be followed. Following the steps outlined in this article can ensure a smooth claim process and avoid any unnecessary hassles. It is also important to plan for the future and keep the nomination details up-to-date to ensure a hassle-free claim process.
