A fixed deposit is a low-risk investment option that can help your wealth grow and finance your life after retirement. However, in case of the untimely death of the holder before the maturity of the deposit, here’s what you need to know about claiming the investment. The process is different for different types of FD.
Here are the common types of FD accounts and the processes that you will need to follow.
- Either or survivor option
In the event of the death of the first account holder, the second holder gets the FD amount. However, in the event of the death of the second holder, you can delete their name from the FD and add another nominee. Preserve and grow your wealth comfortably by investing in Bajaj Finance Fixed Deposit.
- Anyone or survivor account
As a government can never run out of funds, treasury bills are considered risk-free investments. A fixed deposit scheme is independent of market volatility and is usually the safest option. A Bajaj Finance Fixed Deposit has high stability ratings such as ICRA’s MAAA (stable) and CRISIL’s FAAA, making it more reliable.
- Joint holding account
This account type provides the returns from FD only when you and the co-holder sign the relevant documents for discharge. In case of any unfortunate event, either of the co-holder can withdraw the funds.
- Single holding with nomination
A single holding account means only the holder can perform all the actions related to the FD. The nominee’s authority is limited to receiving the funds in event of the holder’s death.
- Single holding without nomination
This is a pure single-holder account, which means that only the holder has access. In event of the death of the holder, the family members will have to go through a few formalities such as providing certain documents including a will or succession certificate to receive the funds.
Steps to follow to claim the FD
- Contact the FD provider to get information about the account type
- Submit the following documents:
- Claim form
- Death certificate
- Succession certificate
- Indemnity bond
- Choose to continue with the FD or liquidate it
Bear in mind that while you may want to liquidate the FD before the lapse of the tenor, the final decision rests with the FD provider.
To make this process easier, it is important to be aware of the type of FD account to choose. Select a trusted family member as the nominee and inform them about the terms governing your FD. It is also advisable to keep a record of all investments and bank details in one place so that your family can easily access all the information.
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