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What to Do When a Fixed Deposit Holder Dies Before Maturity?

  • Highlights

  • Determine the account type by consulting the provider

  • Check the list of nominees for the account

  • Assess whether you want to liquidate the FD

  • Initiate the claim with relevant documentation

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 and your family need to know about claiming the investment. The procedure you undertake will depend on the type of account.
Here are the common types of FD accounts and the processes that you will need to follow.

Bajaj Finserv Fixed Deposit

Joint accounts

- Either or survivor option
Here, if you are the first holder, in the event of your death, the second holder will be entitled to the FD amount. However, in the event of the death 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. Here, you can gain from various benefits such as an attractive rate of interest of up to 8.20%, flexible tenor and easy online account access. Besides, with excellent customer service, navigating any FD related matter is a breeze.

- Anyone or survivor account
As a government can never run out of funds, treasury bills are perceived as risk- free investments. A fixed deposit scheme does not depend upon the influence of market forces and bank FDs are regarded as the safest. The 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 you the returns from your FD only when you and the co-holder sign the relevant documents for discharge. In case of any unfortunate event, either you or the co-holder can withdraw the funds.

Individual account

- Single holding with nomination
This is usually regarded as a single account which 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 long-winding formalities such as producing several documents including a will or succession certificate to receive the funds.

Generally, the process that you will have to follow will include the following steps :

1. Get in touch the FD provider and get information about the account type
2. Organise and submit the relevant documents. These include:
- Claim form
- Death certificate
- Succession certificate
- Indemnity bond
3. Decide whether 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.

So, in case of any unfortunate event, you can follow the aforementioned guide to withdraw the FD. As an investor, to make this process easier, always be aware of the type of account that you are choosing. 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 your investment and bank details in one place, so that your family can easily access all the information when they need to.

DISCLAIMER: The mentioned fixed deposit interest rates are indicative only, and may be subject to change periodically. Please check the interest rates on our website.

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