Bank Fixed Deposit (FD)-What to do when depositor dies before maturity?

We all have Bank Fixed Deposit (FD), at least a one. However, have you ever thought of what will happen when depositor dies before maturity? Whether your nominees or family members know the rules?

Recently, one of my blog readers asked this question. His father had some Bank Fixed Deposit (FD). Recently, his father died. Therefore, this reader is in a dilemma of whether to inform the bank now itself and withdraw the money or he has to wait till maturity. Remember, this particular Bank Fixed Deposit (FD) was fixed at a higher interest rate than what it is available now.

Before understanding this common problem. First, let us understand the rights of a nominee in case of Bank Fixed Deposit (FD). It is very much important to appoint nominee in all your financial transactions. Otherwise, you may end up with cases like THIS. In the case of Bank Fixed Deposit (FD), below are the few rights of nominees.

  • Nominee acts like trust. He has no rights over the asset. He simply acts as a custodian and makes sure that the deposit must reach to a proper legal heir. However, he can claim the amount only when it is  specified under the will or if he inherits the money.
  • He is the contact person in case the depositor dies before maturity.
  • He has to submit the proof while claiming the amount.
  • The nominee must be an individual and one member. HUF, trust or societies can’t appoint nominees.
  • If you haven’t appointed nominee during creating Bank Fixed Deposit (FD), you can do so at a later stage too (but before maturity).

 

In how many ways, we can hold the Bank Fixed Deposit (FD)?

  • Joint holding with “Anyone or Survivor” option-This is the best way to deposit. Because, in a case of death of a first holder or joint holder, the survivor may claim the deposit easily. The survivor has to produce the death certificate to the bank. Upon receipt of the same, banks will delete the deceased person’s name and the FD will turn to be in the name of a survivor. In such a situation, the FD is continued as usual and not considered as a death of a depositor.
  • Joint holding with “Joint Holding” option-In such types of Bank Fixed Deposit (FD), the holding will be joint. All joint holder’s signature is a must to claim the deposit at maturity. In the event of a death of anyone holder, the surviving holder may claim the rights over deposit by producing the proper documents. In a case of death of both holders, then the money will be payable to a nominee.
  • Single holding with “Nomination” option-If depositor dies before maturity, then the maturity proceeds will be payable to a nominee (as a custodian or trust). At a later stage, the amount will be fixed based on the WILL or Succession Certificate.
  • Single holding without “Nomination” option-If there is no nomination, then the family members must produce the legal heir proof or a succession certificate to claim the amount. This is the most lengthy process.

The same scenarios are explained in below image when the depositor nominated someone.

Bank Fixed Deposit Nomination

Now what will happen if the depositor not nominated? The process will be difficult to claim for the survivors. The same is explained in below image.

Bank Fixed Deposit (FD)

Note-For simplification purpose, I created Mr.Z as legal heir of both Mr.A and Mr.B. However, in reality you may find different. In case of deposit without a nomination, the maturity will be payable to the legal heirs of deceased or  any one of them mandated by all the legal heirs.

Documents required to claim the Bank Fixed Deposit (FD) of the deceased person (when the nomination is there)

  • Claim Form-This is nothing but a letter to Bank stating that the depositor died and you are being a nominee, claiming the deposit. The format will be available with the Bank.
  • Death Certificate-You have to produce the death certificate issued by local authorities.
  • Proof of Address and Photo ID-You have to produce the address proof and photo identity of the nominee or the survivor.

Documents required to claim the Bank Fixed Deposit (FD) of the deceased person (when the nomination is not there)

  • Succession Certificate from Legal Heirs-You have to produce the succession certificate.
  • Indemnity Bond (format will be available with banks).

Whether to continue or withdraw the deposit?

After the death of a depositor, the nominee has two options. One is to continue the FD till maturity. Second is to withdraw it immediately. In the case of withdrawal, banks will not charge any penalty.

You can act according to the current interest rate cycle and the deposit interest rate. Suppose the FD interest rate is around 10% and currently the same bank offering FD at 8%, then it is better to continue the FD till maturity. If there is a reverse situation, then you can withdraw it.

How you receive the maturity amount?

Here RBI had provided two options and are as below.

a) The bank could be authorized by the survivor(s) / nominee of a deceased account holder to open an account styled as ‘Estate of Shri ________________, the Deceased’ where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.OR

  1. b) The bank could be authorized by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark ‘Account holder deceased’ and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument or through ECS transfer in the name of the appropriate beneficiary.

You notice that claiming deposit when there is no nomination is a hardship. Hence, to avoid this situation, always create FDs with a nomination. Hope this information will be helpful to all.

601 Comments

  1. Dear Basu ji,
    My father expired before maturity of fixed deposit and without nominated any nominee in Punjab national bank.. However, family pension is being received by my mother after death of my father in the pension account which is also in the same bank. Please advise how that FD without nominee can be transferred to the family pension account of my mother.
    Thanks and regards
    Yamuna

    Reply
    • Dear Yamuna,
      Approach the bank with death certificate and legal heir certificate. It will be transferred to your mother name.

      Reply
  2. dear sr
    my father has expired and his savng ac doesnot have nominee name
    hovewer his fd have nominee name ie my mother
    now will the fd proceed will go to my father saving ac
    or will be given to my mother as she is the nominee on da fd
    pl advice

    Reply
  3. Dear sir,My Father expired recently and he had a fixed deposit in SBI ,the maturity was on December 1 st this year.As my mom was nominee for those accounts bank mangaer informed us to submit claim form,but when I asked the manager can we submit the claim form after maturity he said their will be penalty for that as we didn’t inform the bank about deceased and we should claim now only..can you please help as I could lose some money as I am claiming before maturity..My Father expired on May month fyi

    Reply
    • Dear Mahesh,
      You inform the bank about the death. But you have rights to either break or continue the FD till maturity.

      Reply
  4. Dear Sir,

    Request you to provide your advice. My father had a FD ( Either or survivor) in his name and my mother was the nominee. Both of them passed away. I have two brothers and one sister. There were disputes, and quarrels regarding property distribution. This FD which my father gave me , How to take the money. When I approached the bank , they gave me the claim form . In this I need to take the signatures of my brothers and sister. As there are disputes and quarrels I will not be able to get their signatures . So how do I go about , if I want to take the money from the bank. Kindly advice me.

    Regards,
    Kumar

    Reply
  5. Sir,
    My mother was the sole holder of a Fixed Deposit with nomination duly created in favour of her son. She expired a few months ago. Her son lives abroad and has no Indian bank account. The Bank is insisting that her son comes from abroad to identify himself to claim the Fixed Deposit.
    Question No. 1. Is his presence in India really necessary?
    N0. 2. Can the proceeds of this Fixed Deposit be paid to the nominee by Pay Order or Demand Draft (either in INR or foreign currency).
    No. 3. Could you please tell me if there are specific RBI guidelines for payment of proceeds to the nominees?
    Thanks in advance.
    Mervyn

    Reply
    • Dear Mervyn,
      1) Yes.
      2) Only possible once he prove himself and provide his KYC documents.

      Reply
  6. Dear Basu,
    a) My father,a hindu, jointly held multiple bank savings a/cs and linked FDs with my mother under either or survivor clause. He passed away few years back.

    c) After his demise, my mom applied to delete my father’s name from all accounts & FDs and in turn became 1st holder

    d) Does my mom becomes sole owner in all joint bank accounts?

    e) After father’s death mom & I jointly held all accounts + FDs in E or S mode.

    f) Mom passed away after executing registered WILL.

    g) My sibling is claiming from father’s since his year of demise (principal + interest). Is her claim legally valid? Mom has bequeathed a portion of money from the bank a/cs thru will.

    Regards,
    Makrand

    Reply
    • Dear Makrand,
      Does my mom becomes sole owner in all joint bank accounts?-YES.

      Reply
      • Basu,
        Appreciate. Thanks for prompt reply. Is my sister’s claim to father’s share in accounts since his demise legally valid?

        Reply
        • Dear Makrand,
          You have to check what type of account holding it is. Accordingly, her rights will come into the picture.

          Reply
          • Dear Basu,
            It was joint account of dad & mom under Either 0r Survivor clause. My dad passed away in 2012. Please lookup my original query.

            Regards,
            Makrand

            Reply
            • Dear Makrand,
              In that case, your sister can’t claim as your mother will turn to be a natural FD holder.

              Reply
              • Dear Basu,
                Appreciate. thanks for sharing n guiding. Keep rocking

                Reply
  7. Dear Sir,

    My father passed away few month back, he has a saving account in which I am the nominee, there are few fd from that saving account which has no nomination, when I reach bank for the saving account claim , manager told me that he will close both fd and saving account at the same time and for that I have to bring succession certificate,
    Can’t I claim the saving account money where I’m nominee without succession certificate?

    Reply
  8. Dear Sir,

    Reference to your post i want guidance from you that,
    My father has made two FD in bank in year Dec-2011 (9L) and Sep-2012 (15 L)with monthly insert payout options for 24 month FD renewal.
    Now in month of March 20 my father deceased and we approached to bank for either transfer of transfer FD as it is or FD amount to mothers account in same branch by submitting all desired documentation.

    While transferring amount of these two FD hey have deducted amount as penalty approximate 30 thousand and gave TDS certificate of 12 thousand for year FY of 2019-20 , difference in principal amount is apx 53 thousand.

    Pls guide is this deductions are correct how o take up with bank.

    Reply
  9. Dear Sir, my father died without any will on 3rd may, 2020, he left behind 1.25 crores FD with my mother as joint holder in either or survivor mode, i have one divorced sister staying with my mother and father for long time, now they are refusing me to give my 1/3rd share as a son , what can i do now in this case , can i file the civil suite to take court order for stay on FDs

    Reply
  10. hai sir… my wife passed away in may 2020 . she put some amount in TD ( post office) with nominee as her married sister. And my wife and me have jointly home loan in bank. Can i withdraw that TD by using succession certificate and transfer to home loan account

    Reply
  11. If my dad has deposited the FD amount in his home branch, can I collect the money from my home branch which is different

    Reply
      • Is there any time limit before which we should claim it?

        Reply
        • Dear Sir, If a priest(Fr.X) helps another priest(Fr.Y) by providing funds. Fund receiver(Fr.Y) deposits the fund in bank for 3 years , placing nominee as fund provider (Fr.X). Later, account holder (Fr.Y) dies, then bank calls (Fr.X) and gives 1month interest as he is nominee . But the legal heirs of deceased account holder ( Fr.Y) claims that this fund is their, as they are legal heirs. What to do now? Can the nominee(Fr.X) get the fund?

          Reply
          • Dear Jasmine,
            Nominee acts as a trusty and can’t claim the ownership on FD.

            Reply
  12. Sir, my brother has put all the fixed deposits on my mothers and his either survivor name. Some of them he has nominated himself. Acc to my deceased fathers will it should be equal for both sons. All the money is of my father. In my absence being out of country he put all the money on his nomination and joint with mother. Do have still have a claim acc to fathers will.

    Reply
  13. sir my father is expired on 30july 2019.he leave some fds with nominee my self .now i want to know what amount we will received with premature fds and by which interest rate.secondly i want to ask that till which date i received interest ….till death or till when we claim with the bank like death on 30 july 2019 and we claim 12 march 2020

    Reply
    • Dear Arvind,
      For amount and interest, approach the bank. Up to the breaking date of FD, you receive the interest.

      Reply
  14. Dear sir,

    My grandma had a fd and she nominated 5 children, my father is nominee out of 5.. 3 months before my father passed away and didnt done any changes in fd nomination and few days back my grand ma also passed away, as we didn’t done any changes in the nomination do I have rights to withdraw on behalf my father or else remaining 4 nominees will get that money

    Reply
    • Dear Anusha,
      Approach the bank with valid legal heir certificates.

      Reply
    • My father has a joint account with my mother with no nomination.
      He also has FD in only his name… Again without nomination…
      Who will get money after his demise

      Reply
      • Dear Ukmishi,
        For joint account, it is your mother and for FD also your mother (after submitting the legal heir certificate).

        Reply
  15. Recently my father senior citizen passed away, I am having fixed deposit as e/s. Now bank official is saying that will delete your father’s name and continue this fd in your name but present rate of interest will be applicable now onwards since you are not a senior citizen. Please guide weather he is correct or not

    Reply
    • Dear Rahul,
      Even though they can’t change the interest but many banks are changing it. You have no option but to accept.

      Reply
      • Dear Sir thank you so much for your advice.
        Warm regards RAHUL

        Reply
  16. Dear Sir,

    One of my relatives has a joint FD with his wife in a PSB. His wife has recently passed away and he has lost the fixed deposit receipt. How cam he claim the maturity proceeds?

    Reply
    • Dear Aditi,
      Approach the bank with providing details like PAN number and all. They may help you.

      Reply
  17. My father died in March 2020. He has some fds in his name in which in which my mother is nominee and in one fd there will be no nomination. So what’s the process of claiming fds and are fd’s transfer from other than nominee name. Can we encash it rather than transferring into other fd’s.

    Reply
  18. Hello Sir,

    Hope you are doing well. Somehow I cannot find my last post made this morning. Anyway posting it once again.

    My parents have FDs in Indian Overseas Bank – father 1st holder, mother 2nd holder, nominee- myself, mode of operation either / survivor.

    My father has passed away this April during lockdown.
    Can my mother 1) continue FDs till maturity by giving bank a written application to delete my father’s name (by showing death certificate), 2) making herself first holder 3)myself as second holder (delete my name from nominee) and 4)submit 15H in her own name

    Bank is telling, she has to close all FDs and make new ones, as my father was first holder. Otherwise they will deduct TDS, which cannot be retrieved as it
    is not possible to submit IT return in my father’s name further.

    Kindly help me out in this situation. How to approach bank to get it done.

    Waiting for your valuable reply.

    Reply
    • Dear Susmita,
      I have replied to it. They are misguiding you. Your mother has every right to continue the FD without breaking it.

      Reply
      • Thank you Sir for your reply.

        What should I do now? Should I write an application to Branch Manager stating that :
        My father has passed away. My mother who is also senior citizen, wishes to continue FDs till maturity. Kindly delete my father’s name and make herself first holder and myself second holder and delete my name from nominee and she will submit 15H in her own name.

        Should I write like this?

        I will attach death certificate with this application.

        If they do not accept the application and refuse to give reason in writing what should be my next step?

        Kindly suggest.

        Reply
        • Dear Susmita,
          Yes, that is the better way to write and submit to Bank. If they not accept??? They are there to SERVE YOU. Let them accept and act according to the rules. If not, then let them give in writing.

          Reply
  19. Hello Sir,

    My parents have FD in Indian Overseas bank as- 1st holder father, 2nd holder mother, mode of operation – either or survivor

    My father has recently passed away. I asked bank to delete father’s name (showing them death certificate docs) and continue FD in mother’s name. She is also senior citizen and will give 15H in her name.

    Bank is telling me mother has to close the FD (can reopen further in her name). Otherwise TDS will be deducted in father’s name which cannot be retrieved as no IT return can be submitted in father’s name.

    Kindly help me out in this situation, and tell me how should I approach bank.
    Waiting for your valuable reply.

    Reply
    • Dear Susmita,
      Your mother no need to break the FD as she is the survivor, she can continue the FD. Deducting TDS is their internal processing fault not your fault. Never let it to happen so.

      Reply
  20. my father a fd senior citizen option my father is first holder and I am secend holders the either or serviver option but my father is death then I what to do . I continue my fd isit possible please give me a proper way.

    Reply
  21. Dear Sir,

    My Father made FD around 10 Lacs and died and i don’t have Fixed Deposit bond but he made nominee is in my name only, we have 2 brother, please let me know the what is the procedure to get FD amount and rights of owner.

    Reply
  22. Thank you for this article. I have a query. My father was a retired sbi employee and he had multiple fd accounts at sbi all held jointly with my mother. He and my mother had jointly taken a loan against fd(which was kept lien) 2 years back with a repayment tenure of 10 years. He passed away recently. Will I have to prematurely withdraw to change the name of the holder or continue till maturity?

    Reply
  23. Dear sir
    My father passed away on 23rd Feb 2020.my father and I have fd in banks under the clause either or survivor.as I am teacher of pg category my father helped me to manage my accounts and created fds jointly.my elder bro also has some fds jointly with me & my father but his amount is not much so he keeps threatening me to give case against me if I disagree to give him 50 %of total fds..now what should I do..?is there any legal rule ?pls help me. Am Vry much worried.

    Reply
    • Dear Sudeshna,
      Wherever you are the holder with your father’s FD, now you will turn to be the natural holder.

      Reply
  24. Dear SIr,

    My Grandmother has demat account, savings bank account and few FDs with a bank. She has recently passed away. All the accounts have nomination but in my uncle’s name. He took my grandmother’s sign on nomination forms against her will. My grandmother had 3 children. 2 sons and 1 daughter. My aunt does not want any money and my father has already passed away in 2006. Is there any way using which I can claim the money despite of having my uncle’s name in nomination in all assets? Can my uncle withdraw the money without our signs?

    Reply
    • Dear Chaitra,
      He can withdraw the money as he is the nominee. Better to approach the bank and try your luck.

      Reply
  25. Dear Sir

    One of my friend and his father had an either or survivor FD in a Bank, Now the father of my friend has died due to illness,
    Currently my friends brother stole the FD certificate from my friend father . in this case what to do.

    Reply
    • Dear Aravind,
      If someone stole a certificate, then it does not mean that they will be the owner. It should be distributed as per the legal heir laws.

      Reply
  26. My father was passed away… He had the FD, Nomination of Account was not there….and I lost(searching)the Fixed Deposit Receipt….is there any possibility of FDR in lockers…??

    Reply
  27. please help. I have Bank FD with my father being the joint holder(E or S) and getting interest rate of Sr citizen. My father died before the maturity of FD and I am not a Sr. Citizen. What to do? Simple Deletion of name of my father from FD will be possible as the account is with Sr Citizen and of higher interest. Or Submit the Receipt for premature withdrawal for the death of first holder being a Dr citizen.

    Reply
    • Dear Sanjoy,
      You have to approach the bank and inform about the death. However, you can continue the FD till maturity.

      Reply
  28. Sir,

    It is a great article. But what you have said that in case of Joint account the FDs will continue in the name of the other applicant where the option of “either or survivor” is opted and the Bank will not close the FD, do you have any RBI Circular and/or Guideline in support of your said averment? Because recently my father has died and a public sector bank is saying to us no matter your father had a joint account and FDs in joint name with the bank but as he was the primary applicant in the joint account with mother, the account will be closed. I would appreciate it if you can share the the latest Rule/Circular/ Guideline of RBI in respect of procedure in case of demise of one of the Account Holder in Joint Savings Account.

    Reply
    • Dear Kanika,
      You can use RBI website to search for the same. However, if one use commonsense, if that is the case as per the bank, then what is the use of such joint accounts? Let them give in writing to act against the bank.

      Reply
  29. Dear Basavaraj
    Thank you for your advice.
    Could you advise me on the following case?

    1. My sister who was a spinster living with my elderly mother died.
    2. She had some fixed deposits where she had named my daughter and my son as nominees. She hadnt made a will.
    3. My daughter and son have filed claims as nominees and for one of the FDs, the bank concerned has duly transferred the asset to my daughter’s savings bank account.
    4. My son and daughter are clear that they wish to transfer the moneys received straight to my mother’s account and leave it to her to decide on the disposal of the money.
    5 My mother is the first natural heir. None of the other possible heirs are desirous of filing claims (the three siblings of my sister – me, my other sister and my brother.
    6. How should my daughter and son transfer the money to my mother? Can they simply ask their bank to NEFT transfer the amounts or do they have to establish the natural heir status of my mother through some legal procedure?
    7. How are they to ensure that their own banks do not apply TDS on the moneys received?
    8. My mother is 85 years old, but by God’s grace, of robust mind and reasonably healthy.
    9. Should I advse her to immediately make a will? I know she intends leaving the money equally to her three grand children.

    Would be very grateful for your advice.

    Reply
    • Dear Ganesh,
      Why not your kids transfer the money to your mother’s account when it is transferred to their account?

      Reply
  30. Dear Sir
    My Father died recently and there is no nominee in the savings bank accounts. We have two brothers, Can I with draw 50 % proceedings with the succession report submitted by me. My brother is no t willing to submit any succession certificate <
    Please help.
    Thanks

    I Bose.

    Reply
    • Dear Bose,
      You can if the bank allows. But as per me, they will not allow to do so.

      Reply
  31. My father in law has fixed deposits in Andhra bank with my mother in law as nominee. They have one son and one daughter (my wife).Both my father in law and mother in law are expired. My wife and my brother in law jointly submitted the claim form. Now bank is saying my father in law’s mother (my wife grand mother) also will have legal right in this money. Since my wife’s grand mother also expired. They are asking for death certificate of my wife’s grand mother. I think only wife, son and daughter are considered as legal heirs. But bank is not accepting that.

    Reply
    • Dear Vinod,
      Let them give it in writing of whatever they are asking for. As per me, your understanding is correct.

      Reply
  32. Hi Mr Basu,

    Thanks for this article. I have one small doubt i.e explained below:

    Scenario 1: My father is holding FD jointly with my mother.
    Scenario 2: My father is holding FD jointly with me.
    Scenario 3: My father holding FD alone with me as nominee.

    In all the above circumstances can we hold the FD till maturity in case of my fathers demise because the return % is more as my father is senior citizen?

    Reply
    • Dear Subhajit,
      In case of joint holding, you have to inform to the bank immediately about the death. Once you inform, then the primary holder will be the second holder and FD will continue as per the existing rate up to maturity. In case of single holding, banks will close the FD and handover the money to nominee.

      Reply
      • Thank You Sir, will the same apply when holding a FD as “Anyone or Survivor” ? . I understood what needs to be done when holding FD alone.

        Reply
        • Dear Subhaji,
          The survivor has to inform the bank and the FD can be continued in the name of survivor.

          Reply
  33. Sir,
    My father had some bank fixed deposits, with me as the “either or survivor”. Now, after his death, my mother and unmarried sister are practically threatening me and demanding their “share” from those FDs. Can they make such a claim ????

    Reply
    • Dear Das,
      As you are a sole survivor, you will turn to be an owner of that FD.

      Reply
  34. My father have a fd account and my mother is nominee of that account.1 year ago my father died and now my mother want to continue that account until maturity.can my mother submit form 15 H(senior citizen) for that account.please suggest how to submit.Bank says she could not submit form 15 H for that account. Please suggest me as i want not not to deduct tds for my father’s fd account.please help.

    Reply
  35. My father drawn fd jointly. My father name is first applicant . My father pass away. But fd he has kept other place but not got. What procedure to do by joint applicant to claim for missing fd receipt and withdrawal for fd money? I am first applicant son may I delete my father name and my name in same fd without breaking fd?

    Reply
    • Dear Mady,
      Approach the bank with death certificate of first holder. You can’t delete your name (second holder), without breaking the FD.

      Reply
      • In this case may I replace my name instead of my father name for first applicant on fd receipt?

        Reply
        • Dear Mady,
          As I pointed, you can replace the name only if you are a joint holder OR either or survivor holder.

          Reply
      • In case of fd missing banker ask to produce indemnity bond notarized any other option you can suggest?

        Reply
      • If fd will mature in September and if fd break by second applicant what will happen in case of fd interest ? What is rule if fd break before maturity?

        Reply
        • Dear Mady,
          There will be premature withdrawal charges. Hence, check the same with bank.

          Reply
  36. Hi sir.. Imagine a situation.. A and B are holding a FD with the MOP Anyone or survivor.. Both don’t have children.. C is A’s nephew and he is kept as a nominee.. B has come with a letter and death certificate to transfer some funds to C’s account.. Documents submitted are a plain paper request and copy of death cert.. whether we can proceed with the death claim

    Reply
    • Dear Govind,
      If the one holder dies, then by default the remaining survivor will turn to be the FD holder. Question of the nominee will come into picture only when both not survive.

      Reply
      • Legal heir cert or relationship cert or notarized cert is not needed as the survivor B has instructed to transfer funds to the nominee C’s account ?

        Reply
        • Dear Govind,
          Survivor by default turn a holder of that FD. In that case, FDs can’t be transferred from one person to another person.

          Reply
  37. sir, I had joint fd with my husband, after his demise can I hold the same fd jointly with my son without encashing it?

    Reply
  38. Hello sir, I have a query my grandma have a fixed deposit in bank…. Suddenly my grandma died …My grandma put amount for grand daughter…..All Brothers and sister of my mother saying there need that amount ….In bank saying the grand daughter should sign …..what is the the procedure who will get the amount grand daughter or for the children ah please say the procedure

    Reply
    • Dear Kaja,
      It is based on the legal heir issue. Hence, better to approach the lawyer and consult in this matter.

      Reply
  39. I just turned 18 . My father passed away a few months back. We have some FDs under my name and some under my father. Do i need to get a succession certificate? As it costs a lot the court fees and all. Also what is the approximate fees of a lawyer to make succession certif

    Reply
    • Dear Priya,
      The FDs which are in your name are not required succession certificate but you have to update the age and show that you are now major. Regarding the FDs which are in your father’s name, if the nomination was not done, then yes you have to get the succession certificate.

      Reply
  40. Hi Mr Basu,
    I have one query below.

    Some fixed deposit are in my father’s name(Mother is not alive) . We are 4 brothers and sisters , however in all fixed deposits my name has been mentioned as nominee by my father. Will all the fixed deposits will come to my name after my father or will it be shared among my siblings.

    Reply
    • Dear Satya,
      It will be distributed as per the legal heir clauses.

      Reply
  41. Dear Mr Basu,
    Many thanks for enlightening us on various aspects. Just a clarification.. I am holding an fd jointly with my mother in law where she is the first holder. My question is whether she has the right to liquidate the same without my consent and secondly, can her daughter claim a share after her death. My husband is the nominee in all the fds.
    Regds
    Sita

    Reply
    • Dear Sita,
      As the FD is in joint name, she will not liquidate the same on her own. Her daughter can’t claim the FD as the joint holder is you.

      Reply
      • Many thanks for the prompt response
        Regds
        Sita

        Reply
  42. Hello Mr. Basu,
    I have a similar problem with the above-stated conditions. Our father passed away 10 years back who was an employee at a centralized bank in India. All his monetary possessions were then transferred to our mother’s name (she was the nominee for our father). Now our mother passed away recently with her pension account and three fixed accounts (where she was a sole holder of one and other two were each shared by me and my elder bother) in the same bank where my father was an employee. Now the bank has asked my older brother to get all the legal documents signed and submitted in a way such that all the money goes to him alone and it is upto him what he decides on to share the amount with the rest of us. He (and neither of us) does not have any account in that same bank and the bank has asked him to open an account for the money transfer. We however want the money to be divided equally among three of us (legal heirs) with individual authorisation such that the bank provides each of us a cheque with the desired amount during the claiming process. Is the later not doable or is it absolutely necessary for my older brother to open a new accoint in the bank and get all the money transferred? This might risk the other two heirs from getting their legal shares. Please help. Thanks!

    Reply
    • Dear SSB,
      How can BLINDLY bank transfer all your mother’s asset to your elder brother without bothering the legal heir clause? It is completely wrong.

      Reply
      • Mr. Basu,
        Thank you for replying back. Bank has asked my brother to get the authorization from all three of us stating that we agree to let the money being transferred to one account (that again he has to open anew) or we all have to have a single joint account on our name. Doing the later is very tricky as I stay abroad; although I have to send them my signed authorization before the transfer is made. SO my question was why one has to have an account in the same bank to get the money transferred after a parent passes away. If that is not a mandatory/rule, then we could have claimed it shared and distributed in each of our accounts via cheque.

        Reply
        • Dear SSB,
          It is normal procedure that they don’t want to transfer to some other bank accounts as they may not get the clarity as who is the first holder or what type of account it is. Hence, for safety purpose they are asking you all to open the account in the same Bank.

          Reply
          • Okay, got it. Thank you so much for clarifying me with the issue. Appreciate it!

            Reply
  43. Hi Mr. Basu,
    I have fixed deposited a certain amount on my parents, three members names are mentioned in the FD bond. But the interest amount used to go into my parent’s account. The bond is with me, but my parent went to the bank and took duplicate bond saying that they lost it(i don’t know how bank gave the duplicate without the depositor’s presence). Is it legally correct taking it without my notice (without my knowledge). As I am asking this because the deposit is made for their survival in return they have to share hereditary property to me, but they didn’t give me any property after the deposit is done.

    Reply
    • Dear Rakesh,
      You may not need if you are not the joint account holder.

      Reply
      • the joint account in the sense bank account or FD.

        Reply
          • it is a joint account, sir!

            Reply
            • Dear Rakesh,
              Please cross check once again like whether it is a JOINT account or EITHER OR SURVIVOR ACCOUNT?

              Reply
  44. Sir,
    My father nominated my name in all his fd. I have a brother. After the demise of my father how will the deposits get shared?

    Reply
  45. very nice. The adviser has to inform who Mr.X and how he comes to picture. Whether can he help freely/with some nominal fees in getting such deposits/amounts lying with banks? In case of either or survivor whether the survivor can preclose the deposit and transfer the amount to his a/c? Is this case also applicable with private companies & / banks.

    The article is very good and let it be sent in facebook to all the people.

    Reply
    • Dear Venkatachari,
      Pre-Closing is the rights left with the holder of FD. Hence, Banks can’t deny this.

      Reply
  46. Dear Sir,
    The details on Fixed Deposit and Nomination are very informative. You are doing good work.

    I have a question.

    Ms. A – an unmarried senior citizen has various Fixed Deposits with second joint holder as her nephew Mr. B. The nephew also has few fixed deposits with his own name as first name and second name as Ms. A. “Either or Survivor” has been ticked in each and every form.

    In case of death of Ms. A, the Banks will consider FD in name of Mr. B (since the survivor and the second holder becomes first holder). However, whether other relatives, like
    (1) Married sisters Mrs. C of Mr. B (Mrs. C is niece of unmarried senior citizen Ms. A) and

    (2) Cousins of Mr. B

    have a claim over fixed deposits in which either Mr. B is a joint holder (either first or as a second name)? This question is from view point of inheritance of assets of a person who does not have own HUF (since she is unmarried).

    Regards

    RM

    Reply
    • Dear RM,
      As the second holder is alive and by default he turn to be the first holder after the demise of first holder, then no question of claiming the money by legal heirs.

      Reply
  47. Hi, Mr Basu

    Last year my father died. My father had Joint FD with Either or Survivor mode with my mother. My father was first holder and mother is second holder. We decided to continue FD till maturity. (Its about 6 months more to mature).

    Problem is bank is deducting TDS against my father’s PAN for Financial year 2018-19 because he was first holder. I came to know we cannot file claim of TDS after his death date. We informed bank about our loss already by submitting death certificate. My father’s saving account already freezed by bank. So we request bank to deduct TDS against 2nd holder who is my mother so that we can claim TDS by filling ITR for current Finacial Year.

    Bank is denying stating that they can not deduct TDS against 2nd holder and suggest us to break premature FD then apply for fresh one. If we break premature FD it will be huge loss for us and if we continue we will loss TDS. Which is also a huge amount.

    Question is as per rules of income tax if we can-not claim TDS after my father’s death date how can bank deduct TDS after my father’s death ?

    Please suggest what will be right procedure to avoid our loss.

    Reply
    • Dear KD,
      If death occurred in this FY (2018-19) and FD is also maturing in the same FY, then you can file IT Return on behalf of your father and claim the TDS (if his income slab is below the TDS rate)

      Reply
      • Dear Basu

        Death occurred last F.Y 2017-18 and we claim TDS already for previous year. Concern is he has fds which will mature in F.Y 2018-19 and bank is deducting TDS for F.y 2018-19. its about 6 months to mature fds. I know i cant file ITR for this in this financial year.

        If i continue with fds we are loosing TDS and if i break fds bank is deducting 1% for premature fds + Less interest about 0.5 (if i open new fd) + bank will give interest rate of fds start date and tenure.

        We are in Dilemma what to do to avoid loss. Dont you think there should be amendments in income tax policies in this case. We are loosing huge amount without any fault. Death is natural.

        Reply
        • Dear KD,
          If you already informed about the death of the FD holder, then Banks can’t deduct TDS on the deceased person. Let them correct it. It is an issue with Bank ‘s internal software with many banks.

          Reply
          • Dear Basu

            Thanks for prompt reply.
            we informed bank and they freezes saving account of my father already. I Met with Chief Manager of bank yesterday and asked him bank can not deduct TDS of deceased person but he is not convinced. I know its about there software. Is there any Notification or valid document that can be present to bank by which he can be convinced ?

            Reply
            • This is continuation of my previous reply.

              These fds are joint with my mother in Either and survivor mode. My mother gave written letter to bank that they can not deduct TDS of deceased person so deduct TDS of her (Survivor). Bank’s reply was you can break FD only and apply for fresh one.

              I am searching for valid document or notification from RBI/Income tax department by which i can sue them.

              Reply
              • Dear KD,
                In that case automatically the survivor will be the first holder. I am not sure why they are not understanding.

                Reply
                • This is the fact Sir. But dont have any authentic document for this. Every person have there own views. On views basis we cant convince them. I am fed up.

                  Reply
                  • Dear KD,
                    I can understand your frustration. However, as the last option, let them give in writing about whatever the story they are saying, then approach the banking Ombudsman.

                    Reply
            • Dear KD,
              Do you feel they get convinced and alter their software once you show the valid document? It is commonsense which they missing.

              Reply
              • Right Mr. Basu this is commonsense.

                You know what, i downloaded Application for deceased claim form from bank’s website. There is Section-B (Joint Holder accounts) in which they clearly accepting request to delete deceased person’s name and continue the account in survivor name with same mode of operations. But are not following there own letter format. Verbally they are saying you need to close fd account and apply for fresh one.

                I confirm it from another branch. There is not any norm to avoid my loss.

                Reply
                • Dear KD,
                  As the last option, let them give in writing about whatever the story they are saying, then approach the Banking Ombudsman.

                  Reply
  48. Dear Sir, Is it possible to change the mode of holding (of an existing FD) from “Single” to “E or S”, without closing the FD ?

    Reply
    • Dear Govind,
      You are not allowed to change the holding of the existing FD without liquidating.

      Reply
  49. My question is if, I continue FD (Either and survivor) for a better return. How to give form 15 H for stop TDS deduction by the bank. Can I submit my 15H?

    Reply
  50. my mother has FDs with my younger sister as nominees in all FDs. we are three bother sisters. MY mother has not mentioned anything on FDs in her will.
    will my sister get all the money as she is nominee or we as alegal heir too have a right.
    will bank as her to produce legal heir certificate

    Reply
  51. Sir,

    My father in law have five daughters, all married. After my mother-in-law’s death, my Father-in-law added eldest daughter’s name to multiple FDs and housing property. He has not prepared and will so far. All the FDs are mostly of one year duration and annual interest is deposited to his savings account.

    Now the question is, what happens to the FDs after my father in law’s death. Does other four daughter’s have any legal rights for their share on the FDs jointly held in the name of eldest daughter?

    Reply
    • Dear Mehul,
      Nomination in FDs is acting just like a trustee. WILL and Legal Heir will take over the nomination. If you still have doubts, then better to consult a lawyer in this regard.

      Reply
  52. hi
    my mother has a some fixed deposits in State Bank Of India and i am the nominee for those .

    she died in 20.10.2016 and the maturity dates of the fixed deposits are on 12.05.2017

    so now i am going for the death claim , so would i get the matuity amounts on those fixed deposits or
    would i be getting the complete maturit amount PLUS the bank intrest on the maturity amount from the maturity date -till the day i made the death claim

    Reply
    • Dear Sumit,
      You will get the interest of FD up to maturity. For later period, you will get savings account interest.

      Reply
  53. My mother in law had a bank account with Canara Bank CP branch but opened a Joint FDR with me as a joint holder and my husband as a nominee. This FDR was opened at some other branch. My mother in law expired in 2016.However, only recently I have started the process of closing all her bank accounts etc. Please advice if I need to close the FDR first , issued from a different branch or close her saving account first.
    Also she is still getting ECS credits in her account of some dividends from the shares held by her.

    Please advise.

    Tks and Regards
    17.05.2018

    Reply
  54. Hello Sir,
    My grandpa has recently died. My grandpa has 6 daughter. One of them ( my aunty) is nominated in bank Fixed deposit. Now my aunty is not giving money. As per Will, it provides that ” Any current assets of my grandpa will be distributed equally between each daughter”.

    What legal steps can be taken against this? Is there any right of my mother in this amount?

    Reply
  55. Hello Basavaraj,

    Please clarify my doubt regarding FD,

    In the First section “What will happen to your FD when the depositor dies before the Maturity with Nomination” it is show Mr X will receive Amount.

    Mr X is nothing but Nominee right? Or Who is Mr X ?

    In your picture it is clear Mr A is First Account Holder + Mr B is Second Account Holder + Mr Z is nominee but not clear about MR X

    Legal Heir and Nominee both are same ? or is there anyway that I can declare Nominee is also Legal Heir?

    All the information given is as per RBI guidelines applicable to any indian bank or national bank and it is FIXED?I mean won’t get changed ?

    Please let me know your thoughts

    Thanks
    Dinkar

    Reply
    • Dear Dinakar,
      Legal heir and Nominee may be same or different. I have written this post based on the RBI Guidelines.

      Reply
  56. My father (first holder) and mother had FD accounts with either or survivor option in Allahabad Bank which mature 3-7 years from now. My father passed away recently. The bank says that they can delete the the name of first holder and continue the fd in my mother’s name. However, the TDS will continue to be deducted in my father’s name since that is how their system works as per the bank manager.

    Can my mother continue to file tax returns on my father’s behalf as a legal heir till the maturity of these fixed deposits ? We don’t want the fixed deposits to be broken since interest rate is very low now.
    What would you recommend ?

    Reply
    • Dear Soumyadipta,
      It is their fault that they can’t deduct the TDS in your mother’s name. Why you have to pay the penalty for their fault? LET THEM DEDUCT THE TDS ON CURRENT FIRST HOLDER’s NAME ITSELF.

      Reply
      • Dear Sir,

        Thanks for the reply. I am assuming it’s possible for my mother to continue to file IT returns on behalf of my father till fd maturity date as a legal heir.

        Soumyadipta

        Reply
        • Dear Soumyadipta,
          She can file on behalf of your father up the financial year in which he died. She can’t file IT returns after that on behalf of your father.

          Reply
  57. Sir,
    My mother a senior citizen invested some Rs.20000/- and odd in fixed deposit in the year 2009 November for 3 years while filling the form nominee’s name was also filled after 3 years it was renewed for 3 more years and yet again for 3 more years but just 10 days before the maturity in November 2017 she passed away. Now when I approached the bank they say that there is no nomination for this fixed deposit and they are insisting me to get legal heir certificate. But I am sure that there is a nomination for this deposit. How can I insist them to verify this what should be my course of action. What was the procedure probably adopted for nomination during November 2009 by Bank of Maharashtra because in those days it was never recorded in the computers.

    Reply
    • Dear Ramana,
      I think while renewing your mother not filled nominee details. Let them give in writing that nomination was not there for the particular FD and hence they need legal heir certificate.

      Reply
      • As he rightly said, insist for a letter from the bank, it is auto rollover facility earmarked at the time of account opening, all contractual agreements holds good unless and until the account holder specifies for changes. Please see carefully the FDR receipts may contain the details about whether this account is registered with nomination or not, also nominee registration reference number.

        Reply
    • my Father expired in December 2018. he fixed 6 lakhs change as FD in SBI . But there is no nominee. He was uneducated he doesn’t now the nominee. My mother applied to withdraw the FD. But bankers said there is length process to withdraw . We have four daughters. we prepared all legal papers through layer . Manager said we are four daughter to be signed in the bank. My father have railway pension. manager hold the pension papers . if the FD not claim they will not sign the pension papers. Please advise me sir.

      Reply
      • Dear Rajashree,
        I know that it is a lengthy process. Better to undergo the process as explained by Manager. Regarding the pension papers, he is not authorized to hold it by connecting to FD issue.

        Reply
  58. Hi Basavaraj,
    If a married couple opens a fixed deposit under joint option where both parties are mandatory for withdrawal or maturity claim,

    1. In case of any one survivor who all will be getting the investment. Only surviving spouse or anyone one else also?

    2. What will happen in same above case if there is a nominee and what will happen if there is no nominee.

    Reply
    • Dear Richa,

      1) It is surviving spouse.
      2) Nominee will come into picture when both joint holders not alive.

      Reply
  59. Sir,
    My father had an fd that was single on his name and my mother is a nominee .my father passed away recently so do we need to break the fd and again make a fresh one ? Because it is a single name fd there is no option of either or survivor . Can my mother as a nominee continue this fd till maturity?

    Reply
    • Dear Shagun-Your mother can either continue till maturity or break the same now also.

      Reply
  60. Sir
    My father died last month leaving a registered will in my favour. But he was holding some FD s in which nomination was my mother. My mother also died last year.my father has not changed the nomination after my mother death.
    Banks are pressurising me to probate this will.

    Reply
  61. Hello Sir , In SBI My Aunt has been nominated me as she was unmarried for two FDs one 02Lac(matured) and another 03Lac(not matured). After her death when I contacted the BM they said to produce PAN card and open an a/c. After opening the SB a/c now they are saying to produce Legal Heir Certificate as the amount is above 05 Lac and If once I submitted the death certificate of my aunt for the first FD then the Second FD and the SB a/c will remain closed automatically. Sir Is it needed to produce the Legal Heir !As the process to prepare the Legal Heir is above 03months. I checked the RBI notification and get to know that The amount should paid to the Nominee But will the other accounts will be closed automatically ? The SB a/c has non nominated. Please Sir Advice.

    Reply
      • Is it true that If i provide the death certificate for the first FD the other FD and the SB a/c will be closed automatically ?

        Reply
  62. Dear Sir,

    My grandfather and grandmother kept some rupees on fixed deposits. Before the premium was completed they died
    Just 2 months ago the time of fix deposit has been completed.In the nominee, he has kept the boy. And nominee has lost of fd cheque.

    Now they have to withdraw the amount. so pls. guide me what is process for money withdrawal

    Reply
    • Atin-Approach the bank with the status you shared with me. Such cases are genuine and Bank has to help you in this regard.

      Reply
  63. If the nominee is his wife will it still require will of the dceased?

    Reply
  64. An unmarried lady(A) made fd in some one else’s name (B) and no. Nominations were made and recently that lady passed away(A) , I want to ask weather that money now belong to (B), or it the legal heirs

    Reply
  65. Hi Basavaraj,
    Needed your advice on the following:
    I have a situation where an FD with my senior citizen father as the sole holder and me as the nominee is there. My father passed away recently. Now I have an option to either collect the amount prematurely or continue the FD till maturity. I wanted to know if I choose to continue it till maturity what will be the implication on the following:
    1. Should I provide the bank with the death certificate right now? And If I provide the death certificate, would I become the holder from the nominee because my father cannot be the holder now?
    2. Interest Rate: Since I am not a senior citizen, what will the interest rate be? Will it be the same as before, 0.5% less than before or the current interest rate that is going on for non-senior citizens.
    3. Tax implication: Who will pay the tax on the interest income from this FD? Or rather who can claim the TDS after maturity?

    Reply
    • Deepak-1) You have to intimate the bank about death of your father NOW itself. However, premature liquidity or continuing the same FD is left with you.
      2) As per me, if you continue the FD, then the same rate of senior citizen interest rates will be applicable.
      3) Up to the date of death, it is your father’s income. Later on, it is your income.

      Reply
  66. My grandmother has fixed deposit in a bank , my father is nominee.Now my grandmother has passed away few months back. My father went bank for claiming the amount but one of the bank employee took fixed deposit certificate from my father and transfer the amount to deceased account of my grandmother and refused to give money back to the father. He complained this to the branch manager but he ignored the matter.now my father is not having Fixed deposit certificate No money nothing.what should we do ?

    Reply
    • Madhuri-Let him complain against the bank with Banking Ombudsman.

      Reply
      • But we dont have FDs a/c no. So how can we complaint against it ?

        Reply
  67. Hai Good Evening,

    In January 2018 my Aunt is Fix Deposit 2,00,000 Rs. Unfortunately she suside and dead recently March -2018 and Nominee is Her daughter but maturity period is 18 Months.

    Please give me information FD withdraw process and is their any extra money is comes.

    Thanks in advance.

    Reply
    • Mahesh-Her daughter has to approach the bank to claim the FD. Contact the bank for this process.

      Reply
  68. Sir-My mother passed away and have FD in joint name with my name as 2nd and E/S mode. Now, I can get her name deleted and auto comes to 2nd holder. But what happens to interest as FD are in senior citizen and attracted extra interest rate. Should bank continue at same interest rate else how to handle. Even Bank is confused.

    Reply
    • Ravi-Bank can’t force you to close. But you have an option either to close or continue till maturity.

      Reply
  69. Hi
    I had a FD with my mil for 10 year tenure at 9.25 percent with E or S clause. After her demise we submitttd death certificate and requested for deletion of her name and continue the deposit.after a lot of running around they said they would. Give at .5 less percent which tthy would collect at nd as i am not a senior citizen.but they did not delete her name quoting software issues.the concerned people shifted and they started deducting t ds When. I had submittted 15g.so when we go to them they say we should claim in here name or get fresh fd atcurrrent int rateo.s o whheen wwee closed iii left withh nno option they imposed preclosuure fee at 1percent.is this the correct procedure.bcos we not only lloost interesst but also. Some capitttal

    Reply
  70. Hi Basu,
    There are some FD’s on My mother’s name on her savings account . Recently i have added my name as Secondary acct holder (Either or Survivor )to her Savings account. So in future will i get FD amount directly after her demise? Or Now, shall i have to add my name to FDs on her name ? or Now ,shall she have to break those FDs and reOpen with me as joint holder in either or survivor mode?

    Reply
    • Rahul-Better to hold the FDs and Savings account in the same format rather than complicate the issue at a later stage. Because we don’t know in what way these bankers act and give you new ruling.

      Reply
  71. Sir, My father has two accounts in SBI jointly with my mother in Senior Citizen Savings Scheme of category “Former or Survivor”. My father is died 3 months back. Maturity date is 2022. My query is – can we keep this account in my mother’s name (my mother is also senior citizen) till maturity by deleting father’s name or we will have to close this account? Is there any penalty for this closure? can I open a new SCSS account jointly with my mother (I am not a senior citizen)?
    Currently bank is even not allowing passbook updation of the account.

    Reply
    • Sourav-Inform to Bank about the father’s death and let it continue till maturity. You are not allowed to open the SCSS account as you are not eligible to open it.

      Reply
  72. Sir. Good evening. I seen us valuable advice.
    My brother has fixed deposit of 50000 in Karnataka bank. My brother died in 2015. His policy is matured on 8.1.2018 and it automatically renewed till 7.1.2019.
    He mentioned his friend as a nominee to that f2f

    The problem is we could not trace the nominee till now. We don’t know about his particulars. We don’t have f2f receipt and account passbook with us As myself and my father are legal heirs shall we claim that amount. Any problems we have to face with the nominee and with branch manager in taking my brother Dr amount. Please clearify sir at earliest.
    Thanking
    Ramkumar

    Reply
    • Ramkumar-Nominee suddenly can’t claim the ownership on any asset. Legal heirs have rights. Hence, you or the legal heirs of your brother can claim on that investment. Hence, neither your brother friend can give you any problem nor the bankers.

      Reply
  73. My brother Fixed some amount for one year with nominee. Now he died. How can Nominee withdrawn this money after maturity. What document required to produce with bank . Is required ancester certificate to claim the amount.

    Reply
    • Gopi-Approach the bank with death certificate of FD holder with nominee KYC details.

      Reply
      • I approaches the branch. he gave claim format. But now bank ask for ancestor certificate. is it required?

        Reply
        • Gopi-In your case YES it is required (I earlier commented you without knowing details).

          Reply
          • why ancestor cerificate ?

            Reply
              • In FD Nominee has legally right to withdraw the money of a deceased?

                Reply
                • Bank ask Genealogy. Why it required. If I can not produce Genealogy . Than bank has right to stop payment?

                  Reply
                • Gopi-Nominee just act like trustee but can’t claim ownership on an asset.

                  Reply
  74. My sister and myself are joint holders of FD’s with banks. My sister being prime holder of FD’s expired last month, can I approach bank to delete her name and become prime holder of FD’s. Also please inform whether I can request banks to add my wife’s name as joint holder or as nominee ?
    Income Tax return can be filed only for FY 2017-18 (AY 2018-19) as deceased. Incase I continue FD’s in my sister’s name how will TDS refund be claimed.

    Reply
    • Kamal-Yes, you can approach the bank and delete your sister’s name. However, adding your wife’s name in that FD will not be possible. Regarding TDS, up to your sister’s death the TDS and tax should be the liability of her. After that it is purely your’s.

      Reply
      • Visited one bank which showed deletion of sister’s name not possible unless claiming premature amount.
        I was advised to write letter along with original Death Certificate requesting bank to issue TDS certificate in 2nd holders name from in April 28 next Financial Year 2018 – 19 .

        Reply
        • Kamal-As per me, premature closure is not at all required. You can hold the same FD up to the maturity.

          Reply
  75. Hi sir,

    I have a case for you. And seek your precious advise.

    My Mama and my mom have a joint account with mama as primary and mother as secondary holder.

    My mama has done some FDs under his name with my mother NOT being a joint holder in FD and also there is No nominee. Also my mama has a locker whose rent is paid by this account and I am the nominee of this locker. Lastly my mama holds more accounts/locker with bank with his other sister etc.

    My mama has passed away already.

    My questions are as follows:

    1) the bank is not allowing me file for claim for locker until I get clearance from my mamas legal heirs. My point is that since i am the nominee then I donot need any such clerance, to which the bank agrees but they say that since the FDS are without a nomination and has to be claimed/processed 1st. Also they say that back account and locker is related since the locker rent goes from this account. Pls advise if they are correct in abv all.

    2) Also they mentioned that I have to get clerance from my mamas other sister as well. Is she also a legal heir of my mama?

    3) can the bank account/ fd matter not be treated separately by the bank?

    4) If my mother is the joint holder of the account from which mama made the FDs, can she as joint holder have 1st right on FDs over any legal heir?

    Plsd to hear.

    Reply
    • Sanjay-I think bank is right in this regard (except for the fourth doubt).

      Reply
  76. Hello sir,
    My grandfather kept some amount in Fixed deposit and kept my mother’s name as nominee. After his death, we withdrawn the principle amount. But the interest amount on that FD is getting accumulated every month . The bankers were saying my grandfather hasn’t kept nominee for interest on that FD. As my mother is nominee for that Fixed deposit, is she eligible to get that interest amount too? Please leave an answer to my query. I will be grateful to you.
    Regards,
    Pavan. C

    Reply
    • Pavan-When you withdrawn all FD then why not interest kept there? If FD is already withdrawn, then how the interest will accumulate?

      Reply
      • Actually, the account is on my grandfathers name and he kept my mothers name as nominee. He was taking that interest amount every month when he was alive.After his death, my mother withdrawn the principle amount. The banker was telling that, my grandfather has kept nominee for the principle amount, but not for interest amount. So there were denying to give that interest amount. Is it rather necessary to keep nominee for that interest, as the nominee is sole eligible for the principle amount right? I think they were lying. Please solve my query sir

        Reply
        • Pavan-Sad to hear that when you book FD, then the nomination you set for FD also applies for interest earned. Let them give in writing and then knock Banking Ombudsman.

          Reply
          • Thankyou so much sir.We just reached the banker and he told that he will settle the amount. Thank you so much for resolving my query sir.

            Reply
  77. Hi
    My dad had 1 fd but without nominees.in 2015 he died
    The maturity amount of fd is 50000rs. Bank is saying to submit succession letter..
    But do it is really require to submit succession letter ….or an affidavit is sufficient to provide as we are the legel heir ..????

    Reply
  78. My father and mother had a deposited money in fixed deposit in either or survivor. My father expired last year. My elder brother has lost the death certificate. The amount is already matured and it’s Auto renewed. Now my mother wants the money but as the certificate is lost. Hence what to do?

    Reply
  79. Sir,
    My Father has 2 Senior Citizen Savings Scheme:
    1) Individual Account with Mother as Nominee
    2) Joint with Mother & I (Son) as Nominee
    He expired 4 Months back.
    Now, SCSS has very high Return Rates as compared to Normal Savings Accut.
    Can I just continue the Accounts till Maturity, or will it be a problem later on since Father has expired?
    Is it mandatory to close the SCSS Accounts?
    Would be great if you can help on this.
    Thanks.

    Reply
    • Sourabh-You have to inform the Bank or Post Office where you have SCSS but let it continue up to maturity.

      Reply
  80. Sir, in 1988 my father start a FD of 50000 rs for 2 years in Bank of Maharashtra. then in 2004 my dad dies and I get that fd certificate bt I loss it……Sir than how can I claim it.

    Reply
    • Jay-Approach the bank with your situation. It is easy to track and can be claimed with some banking formalities.

      Reply
      • Thanks Sir

        Reply
  81. Sir,

    My father has expired. I am the nominee for his savings account and fixed deposits at a single bank but in different branch.

    I informed the bank about his death. They have marked the account as customer deceased. His Tax saving FD, is going to be matured in 2020.

    I requested the bank to close his Saving account and transfer its proceeds to my Saving Bank account in the same branch. Since the Tax saving FD is linked with the saving bank account, I was asked to close the FD first. However, the concerned branch has given in writing that closure not allowed till its maturity.

    My question is:

    1) is it possible to de-link the FD with the saving bank account?

    2) Whether I can close the saving account before the maturity of FD

    Rgds

    Reply
    • Pradeep-1) Yes possible in case of death of FD holder.
      2) YES you can as the holder is already died.

      Reply
      • Thanks a lot sir

        Reply
        • Sir,

          On the basis of your advice I again requested the bank to close the saving account of my late father. However, the concerned officer has informed that there is no provision of de-linking of FD from Saving account of deceased. He insisted for the closure of his tax saving FD first. In-spite of the fact that the issuer branch has given in writing that closure not allowed till its maturity.

          Kindly intimate whether there is any guidelines of RBI in this regard

          Regards

          Pradeep Jain

          Reply
          • Pradeep-For your information, for having FD, it is not compulsory to have a savings account. If he doesn’t know this basic, then let him give in writing that also. Once you receive his written statement, then you can knock Banking Ombudsman.

            Reply
  82. Sir my father passed away last month my questions is that there are 2,3 fd’s in my father name but there is no nomine mentioned we our 4 brother & sisters and we want the bank to transfer that amt. in our mothers a.c one of my sister is out of India but at the time of funeral she is here so we went to the bank and manager said that make an affidavit mentioning that the one who’s not in India did not have any objection in this and we do so.But know when go to the bank they have given me an indemnity form,1.sworn declaration form,1.claim form.Which is OK but he has given me 2.property statement form which to be filled by to other people not from our family mentioning his property details and taking our guarantee,which I am not understanding why.
    So I would be very much thankful if u help me out,bcoz in today’s world no one takes ur guarantee.
    Thanks in advance
    Waiting for ur reply asap.

    Reply
    • Amit-What is the problem for mentioning your mother as a legal heir (forget about you all siblings). Once she claim the money, then you can distribute it. Because approaching with this complication might have made Bank to go for such lengthy process. You inform to bank about father’s death and let mother claim that money at first as the first legal heir.

      Reply
      • Problem is not about money distributing we all siblings don’t want that money we want the bank to transfer that fds amt. In our mother a.c and make a new fd with her name,the problem is that the paper work given by the bank is annoying,all the papers which bank is asking is OK my only concern is about that property statement form given by the bank which has to be filled by 2 other person not from our family letting the bank know about there property details as a guranter.
        I just want to know that is there a rule like this or not because same condition we also phase in other bank which is resolved very easily.
        And the bankers know this that we 4 siblings are there in the family as we all are having fds with the same bank.

        Reply
        • Amit-To be frank I too surprised the need of such statement and that also from third-party claim. I am not aware of such rule. If bank still insist, then let them either show the rule else let them give in writing that without that statement they can’t proceed.

          Reply
  83. I am nominee in MY father FD account . after death of my father that amount got against FD, what will for IT purpose. Is there any tax will paid on FD or not

    Reply
    • Gupta-Up to your father’s death, it will be taxed in his hand. After that, it is in your hand.

      Reply
  84. Hi

    This is indeed a very valuable information you have given.

    My father expired in 2012 and was having FD with IOB. In this FD I am nominee. This FD got Matured in September 2012 after his death in FEb 2012. But as I was not aware about this FD earlier and while searching for some other documents in his personal locker found this FD advice this year. I now have initiated claim procedure with the bank and expect to get it transferred in my account anytime.

    I therefore want to know what would be the Tax implication for me for as the original FD amount was seven Lacs and Maturity amount will be around Eight Lac Twelve thousand.

    Reply
    • Amit-Up to maturity, it will be your father’s income. After that it will be it is your income.

      Reply
      • Thanks

        Their was no auto renewal instruction given and I guess If I will get the the amount as as mentioned for original maturity than I will not have to pay tax.

        But if they have auto renewed than also Tax will be on father income only as we intimated his death to bank only this year or after original maturity if it is renewed than excess amount over original maturity amount will be my income.

        Reply
  85. can we claim interest on a Tax saver deposit on pre closure when the depositor dies before maturity

    Reply
  86. My elder sister passed away in 2013… she is holding a Saving Bank A/c in Canara Bank and am the nominee to her saving bank A/c. she also has some Fixed deposit in the same Bank but there is no nomination. Since I am the nominee of the Saving Ac, am I eligible to also claim the Fixed Deposit. FYI my sister had no childrens and her husband also passed away in 2008. kindly advise

    Reply
    • Vishaya-Merely you are nominee to savings account does not mean you can claim her FD where there is no nomination. You have to prove that you are the real legal hier and then you can claim it.

      Reply
  87. Hello sir
    I have a few FDs in my name in which I had kept different nominees in all. Now I’m looking to make a will and in that I have mentioned that I cancel all my nominees and give the money to my 2 sons. Please guide me as to if this can work or if the money will end up going to the nominees. Also how long will the process take for this to happen and will there be a long case for the same or easily my sons can get the FD money by showing succession documents? Please help me out. I want to keep the process as smooth as possible for them.

    Reply
    • Kamya-Your WILL will over take the nominee. However, the process may take some time or delay. Hence, it is always best to change the nominee also.

      Reply
  88. Hi,my husband and my mother in law had a fixed deposit in joint from.last 6yrs I guess and now my mil passed away and we want to withdraw the money but the bank says that there is no one name in joint and asked for old receipt if we have as a proof and we have not informed them that my.mil passed away, they asked us to get her incase we want to withdraw the amt even if it’s joint and if she cannot come then they will send someone to verify, how to go about with this, we asked her to check on her system and the lady gives us answer that they go according.to the system entry, pls guide what to do in this, all old fd had my husband as 2nd holder and this fd it does not show, pls guide

    Reply
  89. My grandfather made 2 FDs in BOM with Senior citizen interest rate & nominated my grandmother who is also sr. citizen. Now my grandfather died recently. Out of his 2 Fds one is matured on 07.11.17 and another one is due for maturing in the year 2020. When we contacted bank for transfer of matured FD amount in grand mother’s account & requested to continue second FD upto it’s maturity date i.e, 2020, the banker said that deceased claims can only be settled once, hence both the FDs will be closed together.

    Kindly advise me in the matter, Can the Bank force me to claim both Fixed Deposits at once by doing premature closure of second FD?

    Reply
    • Sankalp-You have to inform the bank about the death fo your grandfather. However, they can’t force you to close the same.

      Reply
      • Thanks a lot sir…

        I’ve already informed the bank about the same.

        So sir according to you I can claim one Matured FD and let the other one continue till it’s maturity which is in 2020?

        Reply
  90. Sir, my banker says that I am not entitled for the higher rate of interest of Sr. Citizen. But your reply deduces that I will get that benefit on maturity. Please clarify.

    Reply
    • Bharat-Whether the FDs are at normal rate or as per senior citizen rate, the nominee has the right either to close the FD or continue till maturity. Let him give in writing.

      Reply
  91. My father aged 75 years died recently and have FD’s for ?10 Lacs in his name carrying interest rate of 10% maturing in 2020. Myself being the legal heir and nominee.

    Can I still get the benefit of higher rate of interest of Sr. Citizen receiving proceeds of FD on maturity. I must clarify that I am now 40 years old.

    Reply
    • Bharat-As per rule the nominee can continue the FD till maturity. But inform to bank about his death.

      Reply
  92. As usual your article is very informative and useful for all the concerned people. I have a query. If a nominee continues the deposit till maturity after death of the depositor, how nominee will get credit for the periodical interest payment on the deposit? Please clarify.

    Reply
      • Thank You very much for your prompt response. I suppose interest is credited to nominee’s bank account. Is there any formality to be complied? Please advise

        Reply
        • Kumar-Yes, you have to update the details with Bank. Please co-ordinate with bank for the exact process.

          Reply
        • I thank you from the bottom of my heart for your timely and selfless help. You have eased out lot of my worries. Thanks again and will take your advice if required in future.

          Reply
  93. I dont know what to say. You are helping so many people without expecting any return. My father who was a central Govt servant and never took any bribe passed away in March 2017 of a heart attack. He had a 15 lac term deposit in SBI West Bengal without a nominee. We are two sisters and have produced all the documents, afidabit, guarantor, and also signed on the bank paper that the entire amount of 15 lac should be transferred in my mothers name who is also having an account with the bank(my fathers pension account). Bank is not cooperating for the past 9 months and creating one issue after another. As such, what is the fastest way to resolve things. We dont want to get in the problem of making succession certificate as we dont stay in our native anymore. As stated earlier, they are rejecting the file on one account or another like signature missing, afidabit has to be done by a third person who is not the guarentor etc etc. The term deposit expires in June 2018. How can we make sure we get the money? Are they expecting bribe?

    Reply
    • Kaveri-No option but to you both go with your mother and sit in front of them and never leave the place until it get resolved. They actually need some heat treatment.

      Reply
  94. My uncle having 1.5 Cr Fixed deposit with SBI on 5-8-216 with nomination his wife. FD holder died on 2-4-2017. After due dates nominee contact another branch of SBI near to her house and close and transfer the FDs to SBI branch which is near to nominee house. The bank manager accept her request and send the same to FD holding branch. The FD holding branch Manager to inform the request accepted Branch , the nominee must come our Branch(ie, FD holding Branch) to settle the amount. Manager decision is correct or not? Please explain?

    Reply
    • Vishnu-PSUs are mess when it comes to service. Only GOD can protect us in such horrible situations.

      Reply
  95. Hi,

    I am a NRI and my dad has few FDs with myself as nominee in all of them and I am only child. Recently, he is not been keeping well. I would like to know what is the procedure to claim the FD by a nominee who is a NRI and don’t have Indian account. Thanks.

    Reply
    • A-You have to open an NRE account to get it credited to your account. For detailed procedure contact the bank.

      Reply
  96. Hi Basavaraj, I am Basavaraj Padanur, Recently in the month of May 2017 my mother died and she kept FD after her retirement and I was nominee for that FD and now I have received the amount and kept same amount as FD and since I am salaried person and filing return regularly and let me know for next year return do i need to show this as income or whether this amount which I received after my mother death is taxable? let me know how i can proceed.

    Reply
  97. My father has some FDs in the mode of either or survivor with my name. Now he is approx 90 years old and could not able to sign and visit the bank. also in the FD he has written my short name (S.K.Srivastava) insrtead of Shailesh Kumar Srivastava. how can I get the maturity amount.. pl advice

    Reply
    • Shailesh-It is hard to say. Because as he is the first holder, his presence is required.

      Reply
  98. My Father has an FD with SBI and have nomination with my name. My father has passed away recently,so in this regard can i continue to hold FD in my name till maturity period or i have to cancel the FD immediately and settle it.
    Please advise

    Reply
  99. I have a complex situation here & need urgent guidance.

    Mrs A & Miss B are owning 10 FDs jointly few as “Either or Survivor” & few as “Anyone or Survivor” clause. Mrs A has 2 children:
    Mr X (whose name is not there in FD but is legal heir of Mrs A) &
    Miss B (whose name is there in FDs as a joint holder & also is legal heir of Mrs A).

    Now, my question is in absence of Mrs A, who would be the owner of FD amount? Is it solely Miss B as she is jointly holding the FDs with Mrs A or will Mr X also have right even if his name is not there in FDs?

    Kindly help.

    Reply
  100. My mothers elder sister have several fixed deposits in a bank many of them have no nomination few have been nominated she is bed ridden and on her death bed further she is alone and no children and few deposits are nominated to me with savingsbank account can the other deposits be claimed if there are no other claomants

    Reply
    • Krishnamurthy-You can claim all her investments (irrespective of nomination done or not) by submitting the legal heir certificate and rest of the proof of what bank ask for.

      Reply
  101. Hello Basavaraj,

    Thank you for running this forum.

    I have some doubts on my father’s FDs.
    1) My father has joint FDs with my mother (as Either or Survivor) and my father has expired recently. Currently FDs are fetching good interest rate and TDS getting deducted on my father’s PAN. His tax bracket falls within 5 lac tax bracket. Similarly my mother has joint FDs with my father and TDS getting deducted on my mother’s PAN. She too falls within 5 lac tax bracket. Should I inform bank about my father’s death?
    2) Another Question is can we continue my father’s FDs without informing bank? Suppose if I inform bank and if they delete my father’s name then interest may get accounted to mother’s PAN and TDS getting deducted on my mother’s name. This will make my mother to fall into 10 lacs tax bracket causing to pay more tax. Please suggest.
    3) Suppose if we continue FDs with my father for another 5 years, then how to file income tax returns for TDS getting deducted for next 5 years?
    Thank you for your advice.

    Reply
    • Ameen-1) You have to inform the bank immediately.
      2) It is illegal to hide.
      3) Better to inform.

      Reply
      • Mr Basavaraj,
        Thank you for your advice.

        Reply
  102. Hi Mr. Basu

    My father have some fd’s on his name with joint holding with my mom. My father died on july 2017. We have not informed bank about my father’s death yet. My question is, bank is deducting TDS against my father’s pan number. Now he is no more so can we claim TDS in upcoming ITR or not ? What will be the procedure. Account of my father is single holding.

    Reply
    • Singh-For this current FY in which your father died, you can file IT return on behalf of your father.

      Reply
      • Sir, is there any formality in this ? IN ITR an i give my bank account details or my father’s account details ? After all formalities we will inform bank about death of my father. Is it legally right ?

        Reply
  103. Hi Basavaraj,
    Very informative blog. Thanks for explaining the details.
    I have a query. My father has a number of fixed deposits in his sole name, with no nomination. These FDs are linked to a joint savings account of my father (as primary holder) and me, in Either Or Survivor basis. My father has recently passed away.
    Given that now we have to submit Aadhar for the savings account, what do I need to do?
    1) Do I have to make myself the first holder of the account and submit aadhaar?
    2) What happens to the FDs?
    3) Can I allow the FDs to mature? After maturity, they are mandated to be transferred into the savings account.

    Can you please help me out?
    Many thanks,
    Subir

    Reply
    • Subir-1) Inform bank about your father’s death and hold the account in your name.
      2) You have to claim the FD based on the legal heir rules. Approach the bank for the same.
      3) NO, as you are not the nominee and legal heir rules applies here.

      Reply
  104. Hi Basavaraj,

    I was going through a situation,and was very confused,about how the deposit reclaims work for Nominees.I came across your blog which is very informative,Thanks for making it so simple yet clear.

    I have a query too,Hope you can Help here.

    My aunt has some Fixed deposit and she is deceased now.the FD has no nominees!! My mother and my aunt are legal heirs now.Though we are yet to complete the formalities.

    As we are not in good terms with my Aunt,Is there any chance that they can claim all the amount showing that they are only the legal heirs? What can we do to stop it before that happens?what if they have already claimed it.

    Hope you can understand my situation.

    Thanks in Advance

    Girish

    Reply
    • Girish-Approach bank for the claim of FD at the earliest with valid documents.

      Reply
  105. Hi Basavaraj,
    My father a senior citizen had fixed deposited some amount with ‘either or survivor ‘ mandate. I’ve two questions
    1. After father’s death can the survivor (myself) continue the FD till maturity ?
    2. After demise in whose name the bank will release the maturity amount ? Can it be redeemed in my savings account in the same bank as i not a joint holder in my father’s savings account ?

    Reply
      • Thanks Basavaraj
        My query is, the FD is in joint name of my father as 1st and me as second name with ‘either or survivor ‘ mandate. Upon maturity will the FD be redeemed in my father’s savings account or can it be in my savings account because i am not a joint holder in my father’s savings account ? Though i hold a savings account in the same bank. Any way out !

        Reply
        • Amit-After your father’s demise, you will be the sole holder of that FD. Hence, the redemption amount should be passed to your savings account.

          Reply
  106. My father who was a senior citizen had fixed deposited some amount with ‘ either or survivor ‘ mandate.His being the first and me the second name. After his death i am the survivor. I have two questions :
    1. Can i continue the FD till maturity ?
    2. Will the FD be redeemed in my father’s savings account or can it be in my savings account because i am not a joint holder in my father’s savings account ?

    Reply
  107. My brother (unmarried) fixed an amount for one year in SBI without nominee. Now he died. I feel deseased claim document. My mother alive. My mother, all three brother including me and one sister signed on deceased claim document. BUT MY ONE SISTER NOT SIGNED ON IT. Bank ask vansavali . We three brother and one sister is agree to pay in mother account but one sister is not agree. What can do for payment ?

    Reply
  108. HI.

    I want to know that if I open a Joint FD account under the name of my father (Senior Citizen) and me. Which rate will implicate. Senoir Citizen or Regular.

    Reply
    • Mayank-As per the age of the first holder it may be considered whether senior citizen or regular FD.

      Reply
  109. hi basavaraj,
    My wife is the nominee for her mother Fixed deposits and unfortunately she died. my wife doesnt have the F.D reciepts
    Do the nominee has the right to get dupliacte bonds by giving indemnity to bank

    Reply
    • Prahlad-YES. By mere FD receipts not with you does not mean you can’t claim your rightful money from the bank.

      Reply
      • Thanks basavaraj,
        My wife has a sister.
        In case of loss of FD receipts bank is asking to come with her sister along with family certificate. Yeah i know that the nominee has to distribute/share with legal heirs. But as far as my knowledge nominee can claim the duplicate bonds and money individually. Correct me if i am wrong here. Finally your blog is excellent and serves as a quick reference in this subject.

        Reply
        • Prahlad-Nominee acts like a trustee of the money but not claim the ownership. Hence, legal heir rules win over the nomination.

          Reply
  110. Hi,
    I have an FD account with my father as first holder. Unfortunately, he died on 26th July, 2017. The FD account is a senior citizen account which receives much higher interest rate. Now as I am not a senior citizen yet, Bank is telling me they will close the account. Is that correct ? Or the FD account can continue with my name ?

    Reply
      • Thank you for your prompt reply.

        But in what interest? Senior Citizen interest or not? If not then interest on which date?

        Sorry for asking too many questions.

        Reply
  111. 1. My Father (aged 65) passed away recently, he holds joint FDs with my mother (aged 57). The FD is with E and S clause. I have approached the bank and they have instructed me to close the FD as the rate of interest is for a Senior Citizen and the Survivor (my mother) is not a senior citizen. Is this required, or can the FD continue in my mother’s name till maturity?

    2. Can the Survivor (my mother) add a nomination to the FD even after my dad’s passing in the middle of the term of the deposit, as there is long time till maturity?

    Any response would be much appreciated.

    Reply
    • Govindraj-1) As per rule, the survivor can continue the FD up to the maturity.
      2) YES.

      Reply
  112. Dear Sir,

    My mother was having FD with Bank of Baroda and she passed away in June’16. My wife name is registered as nominee in the FD account. When we approached to bank to transfer the FD in nominee account, bank informed us that transfer is not possible and we have to break it. As these FD are made at higher interest rate and maturing in 2024, we do not want to loose interest.
    1) I wanted to know if we continue till maturity, bank will deduct TDS and deposit with govt.? How can we claim or avoid TDS?
    2) Continuation of FD after death is allowed or not?
    I have complained to RBI Omdurman and waiting for their decision.

    Please advice.

    Reply
    • Vinod-1) If you do not break then the TDS will be obvious in your mother’s name. In my view, it is best to inform the death and break it.
      2) It is allowed. But TDS issues and taxation issue may be cumbersome to handle.

      Reply
  113. Hi Basavaraj,

    Can you please share some guidance on the below?

    My father passed away few months back, and he had few Fixed Deposits, all in”either or survivor” mode as per the below:

    1. With me, his son
    2. With my wife, his daughter-in-law

    Question:
    A. Can my wife continue with the FD (with her now becoming the 1st owner? Will there be any tax implication for her?
    B. Can I close an FD (with me as joint owner), and transfer the maturity proceeds to my mother (as she is also my father’s legal heir)? Again, what would be the tax implications, if any here?

    If you could please guide on the above.
    Thanks.

    Reply
    • Rishi-A) Yes, she can continue. Yes, taxation will be now her responsibility.
      B) Yes, you can close it. But it is considered as passed from you to your mother but not from father to mother. As the FD is “Either or Survivor”, you will turn to be the holder of the FD but not your father. You can transfer her as a gift, which not attract any tax to your mother.

      Reply
      • Thanks much, Basvaraj. This helps.

        One clarification regarding the first point. Will my wife need to pay tax on the FD interest only going forward, or will the entire FD amount be added to her taxable income? Can you please clarify?

        Thanks.

        Reply
          • Sure Basvaraj, got that, thanks! But is it on the FD interest…or on the entire amount?

            Thanks

            Reply
              • Thanks much Basvaraj!!

                Reply
              • Dear Basavaraj Sir,

                As per Mr rishi case, can you provide me RBI guideline or circulation regarding “case A”, as i have to present in my college.

                It would very great if u could give me by today.

                Thanking you in advance.

                Reply
                • Bhavna-May I know which particular information you need? Because his case is a compilation of many issues within the family.

                  Reply
                  • Sir,

                    Case:

                    Senior citizen has fixed deposit but before maturity he died and nominee is not a senior citizen(may consider he is 35 years old). As nominee can he continue the FD. If yes, than how and if possible RBI circulation is required(for college activity).

                    Reply
                    • Bhavna-Any FD (whether it is for senior citizen or normal FD), if holder dies, then nominee or legal heir has the right to either continue till maturity or close it immediately. I am unable to dig the exact RBI circular. But you can easily find this on your bank’s portal. If you are unable to find, let me know.

                    • Thank you, Sir.

  114. Dear Basvaraj,
    I have a unique issue. I was looking aster my ailing father since last 3 years. My sister is in another city and my brother is abroad. My father had some FDs with a bank . I have a sister and a brother. My father passed away in January 2017. Before he passed, He had made several FDs in the name of my brother, sister and myself (All with his own money). Since he was retired, he has linked the interest to be credited to his personal account and he was surviving on this interest.
    Some of these FDs are still to mature.
    My query is that, after my father’s passing, my siblings have taken those FDs and have been asking for the interest (Quarterly interest) from the beginning (that was coming from the FDs he had opened in their name but with his money) that had been deposited into his account while he was alive… and after his demise till the FDs mature. I am the nominee for that account and have been giving them the interest as as when it comes.
    Is this right?

    Reply
    • Also I forgot to mention. Some of these FDs are in his name… and they are the nominees. These are also link to his personal account for which I am the nominee. This is so confusing. Please help.

      Reply
      • Sunit-Even if they are nominees to your father’s FDs, you all three can claim on those as per legal heir laws. Mere nomination will not create ownership on any asset.

        Reply
        • Hi sir,

          Recently my grandma died, she has some fd in her name and nominee is my mother… It’s maturity date over, when we are going to withdraw, banker saying you yo get your all sisters and brother to sign then only we can proceed in your name, is it mandatory that my mother siblings need to sign to withdraw fd? Please reply sir

          Reply
    • Sunit-The first question to ask bank is how they crediting the interest to your father’s account when the FDs which are in your brother and sister name? You can’t question the FD amount which is in your sister and brother name. You can only claim the FDs and savings account where you are either nominee or owning those.

      Reply
      • Thank you Basvaraj.
        Since all these accounts and FDs were made by my father as security for his children. Even the money in them was his. Maybe he created them for distribution of funds.
        I am the nominee of his account after his demise.
        My sister and brother have now taken control of their respective accounts (which were opened by my father and were being operated by him). Only he was putting money into them.
        My siblings are now asking for the interest on the FDs he had made in their name while he was alive. The interest that was going into his account.
        I agree that accounts and FDs are in their name…but the money was never theirs.only he operated these accounts and made these FDs. They have now liquidated these FDs, but are asking for the interest they had garnered while my father was alive.

        Reply
        • Sunit-Here the source of funding is by your father. But whether you, bank or anyone can question this that how can a father deposit money in his kids name? Hence, even though the money does not belong to them, the only questionable authority is IT Dept asking for the source of money. I think a single letter of gift by your father to them is enough. They may create and produce to IT Dept (if they ask and I hope they never). Hence, try to concentrate on the FDs which are in your father’s name, FDs which are in your name and the savings account where you are the nominee.

          Reply
          • Thanks so much Basvaraj.

            Reply
  115. sir , my mother had a pension account having my sister as the nominee, out of the collected saving she made a term deposit but did not mention a nominee in the term deposit . my mother passed away in 2015 bank has given the money which was in the saving account but for deposit they want all legal heirs signatures and surity . is it correct what they demand ???

    Reply
  116. My Bua and my Father have an FD in Bank without nominee, both expired within a month’s span in 2012. The legal heirs for the same would be my mother and my chacha. Or would it be me and my sisters also. I have asked the bank now that it is more than 4 years and no one has come to claim the amount, to deposit the amount for PM Relief fund.
    1. Please tell who all are the legal heirs in this case.
    2. What all is needed for the getting the claim for one person within the family.
    3. Can I donate the amount to PM Relief fund as no one has come to claim the amount and I hold the physical copy of the FD.

    Reply
    • Anju-Bua and Chacha means !!..Sorry to ask as I belong to South India, I am new to these words.

      Reply
  117. Hi,
    My father in expired in 2009 and 2 months back during cleaning we found a FD . Now it has been it’s almost 8 yrs, is it possible to claim now.

    when we reached the bank , they asked to visit head office.

    Reply
      • thanks. But there is no proper response from SBI. They are not showing any interest, asking to branch office and the branch manger asking to head office.
        Is there anyway to get this sortout 🙁

        Reply
  118. Good Afternoon
    My mother had an FD with Canara Bank. She appointed me as her nominee. Other than the documents you specify, the branch manager is asking for two witnesses, their KYC documents and for them to come in person to bank branch during banking hours to sign in front of them as witness!!
    Can you please guide under which provisions or situation is this required. He says that witnesses must be bank branch customers with sufficient funds and acceptable to the bank!
    He also says that if i do not know any other account holder from the branch, i can request a well known citizen of the city – may be Mayor or Legislator!! to come with me to the bank branch and be the witness!! I also have option of taking a Central Government Class-I officer to the bank branch and be the witness!
    Kindly guide. Is Canara bank branch manager taking me for a ride or do they have separate provisions for this?
    Warm Regards

    Reply
    • I forgot to mention that my mother had passed away 3 years ago and that i also am her legal heir. The amount involved is about Rs 40K. However, i just want to be sure before i take up the matter with concerned authorities, ombudsman etc so that others are not harassed and if there indeed are provisions what is the need for a nominee. One should instead either have a joint or not have a financial instrument at all!! It means single people have no right to own a financial instrument and they must not save for their future generations to suffer by the hands of bank managers or such financial institution officials. Rgds

      Reply
      • Same problem I face as of S R if any spokesperson sees kindly reply with a solution the amount here involved is 6L am the nominee of my parents who passed away jan 2017 and I have my proofs like adhar, pan card, voter ID, passport ….. I have legal heir certificate also even though sbi branch manager asks for two witnesses, their KYC documents and for them to come in person to bank branch during banking hours to sign in front of them as witness, and they should not be a relative to me and they should have sufficient balance in their account. Then he asks for a third person who can be a relative to give surety and submit his asset certificate Xerox and sign it, that the person is responsible incase any disciplinary actions found on me in future…. kindly anyone suggest me a good solution already I have been taken for a ride in gov office to get those legal heir documents for my parents . . .

        Reply
    • SR-He is just another illiterate sitting as if bank official. Let him write down all his requirement in a paper with signed and sealed. Take that copy and straightly complaint with banking ombudsman. They really need some shock treatment.

      Reply
  119. A relative of mine had a Tax Saver FD on E or S basis (his spouse being the 2nd nameholder). He died prematurely. How this FD will be treated. the following are my query:
    1. Can the 2nd holder ask for premature closer showing the DC?
    2. If it is done this way, is there any tax implication?
    I would appreciate if you can give reference to RBI guidelines if any? The bank is clues less regarding this issue. Grateful if the response is marked to my email.

    Reply
    • Subramanian-1) YES. 2) As usual, the return will be taxable in her hand.

      Reply
      • Sorry sir. Since it is a TAX SAVING FD, if it is prematurely closed, will there be any penalty or refund by us of the Tax benefit availed earlier? This is what I meant as Tax implication. Kly respond to [email protected] also.

        Reply
  120. Sir, i have a follow up question please….This is the situation.
    My mom has expired. I am the nominee for her savings account and fixed deposits at a single bank.
    She had around 50k in the savings account and about 9 fixed deposits.

    I informed the bank about the death. They have marked the account as customer deceased. Among the nine FDs, two of them have matured after her death and seven of them are yet to mature at different months in the coming year of 2017 and 2018.

    My question is:

    1) Can the bank force me to now claim all fixed deposits at one shot by doing premature closure of all FDs mandatorily (even those which are not yet matured)?

    OR

    2) Can i only take the savings account money plus the two FDs that are matured as of now
    AND wait for the other 7 FDs reach their maturity dates? Is this possible?

    If yes, will the FDs continue in my mom’s name or will they be substituted with my name? If my name is substituted, then will i be taxable for the interest received on those FDs which are yet to mature?

    Rgds

    Reply
  121. Hello
    My quire is as under:
    my mother had a FD with coop bank but after making of FD she died after six months before the date of maturity. we don’t have an idea of FDr in name of mother
    after 12 years of her death the original FDr found to me in which I am nominee
    what rate of interest the bank should give after 12 years of maturity of FDs

    Reply
  122. Sir, Recently my mother-in-law was passed away, She is having 3 FD in sbh, in which 1 fd nominee is her daughter and other 2 fd nominee in her son. Now her son have fd with him not giving fd to his sister to claim the amount as a nominee.

    My question is how daughter can get amount from bank now.

    Reply
    • Sreedhar-Request the bank for the duplicate FD certificate or claim the FD by informing that certificate is lost.

      Reply
  123. My father had invested in Tax saving FDs (TSFD). These are maturing from 2018 onwards till2020. My father has expired a few months ago. My mother is the second holder. My queries are:
    a) DO we encash the FDs prematurely?
    b) Can his name be deleted and the FDs continue with my mother as main holder?
    c) Incase the name is deleted and my mother’s name appears as first holder, does she get any Income tax benefit?
    d) Will deletion of his name be possible?

    Reply
    • Mohan-a) Yes. b) No, either you have to discontinue and wait till maturity by updating the death. c) NO, d) Yes.

      Reply
      • Thanks a lot

        Reply
      • Dear Basavraj,
        One more clarification. Incase of withdrawal of the Tax saving FDs (TSFD) under sec 80-C, on the death of my father, will the income tax authorities open up the concerned ITR? Will tax have to be paid? Will it be required to inform the ITO concerned of the withdrawal?
        We have already sent the death certificate to them along with this year’s ITR.
        Thanks

        Reply
        • Mohan-There will not be any tax reversal or tax liability on the head of legal heir who receives the FDs of the deceased.

          Reply
  124. My sister has joint Fixed Deposits with husband who was Sr. Citizen with E or S clause with Bank of Maharashtra.
    My sister who is second holder is not Sr Citizen. Her husband expired. She requested bank to delete the name of her husband and continue the deposits till maturity reducing sr citizen benefit of 0.50 %.

    The bank is insisting her to close the deposits before maturity and make fresh deposts.

    Reply
      • Sir bank insists that let the fds be continued till maturity and get the benefit of Sr.citizens rate. Provided interest for TDs is taken into account
        Secondly as per the chart provided by u on trf of FD there is no mention of whether the 2nd holder is not Sr.citizen then rate is same even banks and RBI is unsure about this
        Request to verify from RBI if u have any source for the same.

        Reply
        • Lalit-Yes, you can’t run away from taxation or TDS. In my view, you can continue the FD.

          Reply
  125. sir,
    My niece had fd in the name of Pooja. But in school her name was written as Sonia. Now to how to claim the amount of fd.

    Reply
  126. Respected Sir,

    My Father had opened a Fixed Deposits accounts with me as a joint Name with instructions of Either or Survivor . Now my father died and after that my brother went to bank to claim the fixed deposits. Bank Denied and ask him to bring legal order to ask as his name was no where in the Fixed Deposits. He filed a suit against me and bank seeking his share in court. What court will do ?

    Reply
  127. Dear Sir,

    Thanks for your prompt reply.

    Will tax apply on FD amount say Rs 1 lacs or interest earned after transferring the same to my name.

    Reply
  128. Dear Sir,

    My daddy was holding stock worth Rs x lac. He is no more now. In his demat account i was 2nd holder in either or survivor status or nominee status. After his demise, i have transferred those shares from my father normal demat account to my normal account. I have also transferred all stocks from my fathers huf account to my normal account. I have sold these stock in month of Dec 2016 on registered stock exchange. On this subject i have below mentioned doubts.

    1) Will i have to pay any tax (short term or long term). My daddy was holding these stock in his normal & huf demat account since last 2 years.
    3) My dad was also having few fds. I was 2nd holder in either or survior status. I am now in process of transffering these fds to my name. Will i have to pay any tax on these fd amount.

    Please guid

    Reply
    • 1) If holding period is more than a year, then it is tax-free.
      2) YES.

      Reply
  129. Sir
    Can we open a 5 year tax saver deposit in joint names. I presume the first holder avails of tax benefits and tds is also cut in nis name. But what happens if the first holder dies? Can the second holder close it?

    Reply
    • Anu-Yes, you can open tax saving FD jointly. But the tax benefits and taxation at maturity be with first holder. If the first holder dies, then the tax liability is with second holder.

      Reply
      • Thank u for the v prompt reply. So we have to inform the bank, and they will start cutting tds from secone holders acount? At maturity the principl will go to the second holder? It cannot be preclosed if the first holder has passed away?

        Reply
  130. Hi Sir,
    My father expired in Nov 2016. He is having FD (15mon) with principal as 5.91l, and maturity amount should be 6.51l ; nominy is my mother. As we r not aware that we can continue that FD till it’s maturity, we went to the bank and closed that FD today. But the interest credited is too less. The total amount v got is 6.27l. may know the possible reason.

    Reply
    • Tej-I am not sure on what basis you felt the interest is less. Hence, better you cross check with bank.

      Reply
      • If we calculate with the interest rate mentioned on the FD slip (7.75) for 12 months, it should b around 6.38l. but v got only 6.27; It seems they have charged 1% penalty, and deducted TDS. But in the RBI guidelines (which u have shared), it is mentioned like bank should not charge any penalty for premature closure in a case of deceased accounts.

        Reply
        • Tej-There should not be any penalty in case of death cases. Hence, you have all rights to question and rectify it.

          Reply
          • They r telling like, in case of premature closure, rate of interest will b reduced and it got reduced to 6.25%

            Reply
  131. I agree but can the Survivor depositor submit form 15 H as E or S clause comes into effect only on maturity. Will I T Dept accept it

    Reply
    • Paramasivan-Submission of Form 15H is yearly affair not at maturity.

      Reply
  132. In the case of a Joint deposit – A & B for 5 years from 1.06.2016 to 31.05 2021, Form 15 H was given by A for the current year. A passed away on 1.2.2017 . Now who will give form 15 H for next year. How do Banks treat this case ? Deposit – E or S – No nomination.

    Reply
    • Paramasivan-As it is joint account, the responsibility of tax liability now rest with surviving holder.

      Reply
  133. Maturity on 10.4.2014 FD holder expired on 9.12.2013 duly nominated her daughter as nominee.on 28.2.2017 the nominee asked to claim with interest+initial deposit.but the tuticorin melur co op.bank says no interest after maturity.what is the reply.

    Reply
    • Subulakshmi-Let them show the rule or else knock the door of Banking Ombudsman.

      Reply
  134. Sir my grandfather Died on 19march 2016 . His a/c is central Bank of India. He done 3 fd and two account same branch but his pension a/c has nominee these fd are matured but they said legal formally what can I do

    Reply
    • Sandeep-Yes, you have to follow the due legal course of action.

      Reply
  135. Hi
    I have a query and would appreciate your valuable comments.
    My father passed away 4 years ago. He had 16 FD’s in his name with mother as joint (not sure if it is E Or S or JH) with nomination in place for all the FD’s. Though I am not sure if it makes any difference since mother is still alive. The issuing bank is Bank of India.

    I am of the view that by producing death certificate of my father his name easily can be deleted from those FD’s and mother continue to be the holder of these FD’s. However, when i met the Bank Manager he told me that there is recent amendment in RBI guidelines according to which these FD’s have to be claimed prematurely by submitting relevant docs by my mother as well as nominees. Once the amount get’s credited in account she can use the money she want.

    Is the bank manager right?

    Reply
    • Sameer-Let him show that RECENT RBI GUIDELINES. Never rely on these fellows.

      Reply
      • I also have a similar situation. I am the joint depositor and the account is “Either OR Survivor”. The bank is insisting that I have to compulsarily close the F.D. in case of death of first depositor.

        Can you please provide me with details of any circular from RBI or Indian Banks Association to the effect that the deposit can be continued after deleting the name of first holder and it is not compulsary to close the F.D.?

        Please give me details so that I can show it to the bank.

        Thanks

        Pradeep

        Reply
        • Pradeep-I provided the sufficient information and also link. If you want then dig in RBI portal.

          Reply
  136. Hi we have problem that my grandma had gold loan and 2 Lakhs fixed deposited in bank for 6 months.now she expired one month ago .before she died she had written like “who will take care of her their only has to use her money and gold so grandma has 3 sons these three people sign on her requirement ”
    my father took care of her .so my father is eligible or not to take her money ? or we need other two people also? pls reply soon

    Reply
    • Babu-Is it a will? In my view NO. Hence, legally speaking, all brothers required. However, I suggest you to consult a lawyer and discuss the same in detail.

      Reply
      • but other 2 sons will not come to bank and do dont like “we r accept to take him my mother money from bank”.because we have quarrels among us.so what happen if we keep gold and money in bank .does bank pay the interest on money or not?
        .

        Reply
        • Babu-I am not sure of the issues in family. But I said the rule.

          Reply
  137. My name is Amar. My Father died 2 years ago and he had two FD’s of Rs. 90,000 & 80,000 but he had not mentioned nominee names on the FD’s. We have 6 brothers. My mother went to bank to claim the FD’s amount but the manager refuse to give her the money. He said that he needs NOC from all of her Son’s. Manger wants that all of her Son’s sign the NOC in front of him in the bank premises.

    My three brothers not ready to go to the bank and sign the NOC. Can you suggest what my Mother can do now to claim her husband’s amount.

    Reply
    • Amar-Your brothers not at all required. Your mother is enough to claim the amount. Because she is the first legal heir of your father.

      Reply
  138. My Mother is having 3 Fds with state bank of india maturing in june 2017 with my wife being 2nd holder and myself being the 3rd holder,being on anyone / survivor basis now my mother expired and we requested the bank to transfer the said FD in my wifes name after deleting the name of my mother, but the bank is insisting that it cannot be done and we will have to close the Fds, Even the manager does not know the legality or status of such a scenario.
    Kindly advise how to convince them.

    THOUGH SCSS I CAN UNDERSTAND IT IS TO BE CLOSED.

    Reply
      • Thanks have taken the print-out of the same, and also got some information from SBI web site regarding claim settlement of deceased account holder.

        Reply
        • had a word with the manager of the bank he too seems to be ignorant about the rules they just claim that since the first holder is senior citizen they will transfer the FDs to the second account holder only on reduced rate of interest since it is the rules. and the extra benefit of rate of interest they cannot pass.

          This inspite of showing them the RBI rules.

          Reply
          • As per the reply going thru of another investor, could u please clarify if the rate of interest for senior citizen is 9.75% and for other person the same is 9.50% ,then on transferring the same rate of interest will be considered at 9.50%,.
            Can i get this rule of RBI /banks , cause while going thru Banks site no where is such comment mentioned.

            Reply
            • Lalit-In my view up to the death of senior citizen it is 9.75%. But later on it is 9.50%.

              Reply
              • with ref.to the same have asked them to transfer the same at the lower rate of 9.50% but they insist the same will be done at the current rate only that is 7%, also requested them to at least provide the circular stating that current rate will apply that to they are not able to provide, even Kotak Bank the situation is same.

                Also for my knowledge just let me know if we contine the said FD till maturity and allow TDS to be deducted in next year can i file the return on my mothers behalf for FY 17-18, AY 18-19 and claim the refund as legal heir- there will be no TAX LIABILITY OF mother.

                Where as in coop banks they are more cooperative they have confirmed that the Fd will be trf.at the same rate being contracted rate and being joint holder.E/S.

                Reply
                • Lalit-You can do so. But asking you that they must show the circular or rule and then let them act.

                  Reply
          • Lalit-Let them give the same in written. Then knock the door of banking ombudsman.

            Reply
      • Sir,
        Which RBI rule? Where can I get the rules ? Can you give me the link from where I can get it ?

        Pradeep Joshi

        Reply
  139. Thanks for your prompt reply.

    Just to clarify further.

    For example

    Original rate of interest is 9.75% for 8 years FD (i.e 9.25% + 0.50 extra for sr citizen)

    Current rate if interest is 7.75% for 8 years FD. (With same bank).

    FD will be continued in the name of Mr B. Agreed.

    But what will be rate of interest.

    1) 9.75% – Original rate of interest.
    2) 9.50% – i.e 9.75% – 0.50% extra for sr citizen.
    3) 7.75% – Current rate of interest.

    Reply
  140. Dear Sir,

    My father is having FD with bank. I am 2 nd holder under either or suvivor case.

    Your mentioned in your article example that in case of Death of A before maturity. Mr B can continue with deposit.

    My question is Deposit will be continued @ of original rate of interest. Or with latest rate of interest. Also my father is having FD with senior citizen rate of interest, Which 0.50% extra. Will that continue.

    Reply
    • Rajesh-In this case it will be continued but considered as non-senior FD.

      Reply
  141. Hi Sir,

    My aunt deposited 5lacs in her savings bank account without nominee and she passed away later.My mother has succession certificate and wants to claim that amount.Please share the process of claiming the amount and kindly mention what interest rate will be paid with the principal amount.

    Thanks in advance.

    Reply
    • Raj-You have to approach the bank and submit the death certificate, succession certificate and KYC details of your mother. They will pay the interest rated booked.

      Reply
      • Sir,

        Many thanks for your prompt response.The bank manager says there are two ways of paying interest and kindly tell what are they.

        Also please share the best process of them.

        Thank you.

        Reply
  142. Hi sir,
    My grandfather had FD in several banks (more than 3 banks) . Out of that he appointed my father as a nominee in one bank and handover him all FDs of that bank. Recently my grandfather died in last month after his death just 28 days my father also passed away now when we go to bank to claim the money they said Depositors and nominee both died so you can’t claim that money as nominee died….
    So what i can do?????
    Please guide me
    [email protected]

    Reply
    • Gopal-How they cheating you? If both deposit holder and nominee dies, then it is legal heir who can claim. Go to bank and teach them lessons about rules. If they are so adamant, then let them give the reply in writing by quoting proper RBI rule.

      Reply
      • Hi Sir

        My grandfather had FD. Out of that he appointed my Mother as a nominee in one bank and handover him all FDs of that bank. Recently my grandmother died in last month after his death just few days my mother also passed away.
        I understand legal heirs can claim the amount.
        But wanted to understand in the above case Whose legal heirs can claim the amount? Is it depositor heirs or Nominees heirs?

        Reply
  143. Thank you so much….!

    Reply
  144. joint fixed deposit(FD) in bank Mr.A And Mr.B and nominee Mrs c ,But Mr.A And Mr.B change the FD joint depositor 1st person Mr.A and replace to Mr. D ……. so it is possible? and what procedure in bank ?

    Reply
    • Archu-You can’t change the joint holding in middle of FD tenure. Once it matures then while re-investing, you can change as per your wish.

      Reply
  145. hello, my mother passed away in October and by father passed away in November in the same year. I am the nominee in my mothers FD. I also have an elder brother who is nominee of many other FDs. My question is whether my signature is required for him to claim the FDs where he is the nominee and vice-versa.

    Reply
  146. Is it illegal for some relation uses the debit cards of some bank, leaving only a small balance ( not the mimimum balance) and withdraws the maximum amount, to avoid providing death certificate of the account holder which in some states take a long time? Will the account get closed automatically as the minimum balance is not maintained and negative balance cannot accumulate due to RBI restrictions?

    Reply
    • Venkataraman-Mere not managing the minimum balance will not leads to account closure.

      Reply
  147. Sir,

    I have opened a Tax saving FD. The issue is- They have wrongly spelled my nominee details(One extra letter in Nominee’s name). What to do?

    Thanks in advance !

    Reply
    • Aditya-You can submit letter for rectification. If they not do, then request for change of nominee with correct name this time.

      Reply
  148. Respected Sir,
    my father has 3 FD in state bank of India. my father was dead in last month. he is not mention nominee in FD but, my mother are joint SB account in same bank. i want to transfer this FD in my mother name continue with same interest rate. what is the procedure to transfer FD in my mother name because, iam going to financial crisis and this amount only to hope for survive. pls, the guide and revearts asap.
    thanks

    Reply
    • Anil-Bank will explain you the procedure. You have to submit the death certificate of your father along with FD certificates and application for removing your father’s name. Make sure that once FDs transferred to your mother’s name, then let her nominate someone.

      Reply
      • Sir, FD will continuing or cash withdrwal in saving account. because, we want to continue
        this FD what is the required certificate and affidivat along terms and conditions. thanks

        Reply
      • Sir,thank you very much for your reply
        but, i want to know one more thing will continue the FD in my mother name or transfer to saving account
        and then, make the FD. and Sir, what is the document required (affidavit or letter) and what is term and condition on it. thanks.

        Reply
    • Dear sir,
      My mother (97) and I (79) hold fixed deposits with the nationalised bank (IOB) and private banks (KVB and CUN ). My mother passed away 0n 25/8/16. My mother’s name is first and mine second E or S. When I sent the death certificate and the FDR to the banks, they say it is not possible to delete the name of my mother.

      If i allow the FD its full course i.e., beyond april, 2016, who will file form 15H ? if not sent, IT at source will be deducted and who will claim the amount ? My mother is not a tax-payee but has a PAN no. Please guide. Thanks. N.R.Ranganathan. [email protected]

      Reply
      • Ranganathan-If the FDs are in E and S format then why not they accept the death certificate of deceased and retain the survivor? First inform bank and let them delete your mother name as FD holder.

        Reply
        • Dear sir,

          The reply I have recieved is that the system does not permit deletion of the first named deposit holder even if she dies. After repeated requests, the officer deleted my mother’s name by hand but the name remains in the system. In April 2017, they will calmly reply the system has deducted IT at source as if the system deducts tax on its own. I have checked up the regulations of RBI and IBA, but deletion of the deceased’s name is not prohibited. Since banking today is very impersonal, the officers do not bother . It is a pity. Thank you sir,
          N.R.Ranganathan.

          Reply
          • Ranganathan-It is their problem of not deletion but not your’s. Let him give in written reply.

            Reply
            • Thank you sir,
              Regards,
              N.R.Ranganathan

              Reply
              • Sir
                They are not prepared to give it in writing. I know when my mother’s is in the system, TDS is automatically deducted.
                I wrote to RBI and IBA but in vain. The next best course is to write to ITO to direct the Banks not to deduct tax at source.
                Rangnathan NR

                Reply
                • Ranganathan-Never leave the seat. Either they have to resolve or give it in written. They are your servant. Remind them this.

                  Reply
                  • Dear sir,
                    As I informed, my deceased mother aged 97 , very senior citizen, held FD with a nationalised bank. This is joint with me, E or S.

                    For the current JY 31/3/17 she has submitted form 15H ( she expired in august, 17 ).

                    The Bank is not deleting her name saying the system does not allow it. I asked them whether there is any change in rules for not deleting the name, but the reply is system ( program) is changed and there is no provision for deletion.

                    This is uniform program for all the banks at the instance of Banking dept. GOI.

                    Now., the problem is for the FY commecing from 1/4/17, my mother is not there to give form 15H. The system will deduct TDS . But who will claim refund ? My mother is no more. and her income is below is taxable limit. I am entitled to the benefits of tax xoncession since I am also a senior citizen.

                    Will the Bank accept my form 15 H ? No answer from anyone in the banking system .I said the principal and income will come to my credit. No answer again.

                    Absolutely useless arguing with them sir

                    N.R.Ranganathan

                    Reply
                    • Ranganathan-It is their problem but not your’s let them give it in writing that they are UNABLE to delete. Regarding taxation, you can file the return on behalf of deceased tax payer and claim tax benefits. Instead I suggest the best way is to rectify the issue at bank level itself.

  149. My father recently passed away. He has FDs worth 1.1 lakh without any nominee. We are trying to claim his hard earned money. However bank is asking for legal heir certificate and indemnity signed in their format. I read in some of your comments that death certificate, indemnity signed and KYC of my mother is enough, in order for her to claim the money. Please can you explain the procedure. We are 2 brothers and 1 sister. We are finding it difficult to obtain a legal heir certificate as courts are closed for this month. Can the claim processed without legal heir certificate

    Reply
    • Amit-Legal heir certificate validates to whom the money should go. So it is required.

      Reply
      • Thank you so much for your reply.

        what is the procedure for getting a legal heir certificate. How long does it take. I have couple of issue – court is closed till 30 Oct and my brother does not stay in city. I am not able to get someone who could help me getting the legal heir certificate done.

        Reply
  150. Hi Sir, My Dad passed away this year and he had a fixed deposit in SBI with no nomination. Now my mother is trying to withdraw the money and we three children’s are okay. I and my brother can come to bank in person anytime, but my sister is in US. Please let me what document she need to produce so that this transaction is happened in a smoother way.

    Reply
    • Naveen-Your mother is enough, why bank asking you three children be present?

      Reply
      • Hi Sir, Bank Manager ask my sister presence in person, if not asking for legal certificate with notary members signature and 2 witness in it.

        Please let me know what should I reply if still the bank manager asks for my sisters presence.

        If only my mother is enough what are all the documents We should produce?

        Reply
        • Naveen-I am not sure why he need you siblings presence when the first legal heir (your mother) is available. Let him give in written about his requirement with valid reasons.

          Reply
  151. My father is dead n we want that account on my mother’s name,what to do?

    Reply
  152. I have an fd Om my grandmother name, she is 80 plus… Second holder was my brother, who has passed away….my question is….can I be a second holder, and do i need to present my grandmother in the bank or a letter is enough to change the 2ND holder

    Reply
      • But she is 80 plus…and when fd was fixed that time also she wasn’t present..still I have to take her or an authority letter would do the needful

        Reply
        • Kanachan-As per rules she is required. But if your bank know her status very well, then a letter is suffice.

          Reply
  153. Hello Sir,

    I have gone through all post to get my answer 🙂

    One of my relative died 2 months back, uncle put a FD in SBI ~5lacks but “withoutnominee”. And my aunty visiting bank for last one week to get the hold of FD, but bank denied it and asked for guarantee that an account holder of same bank with equal balance as FD amount can guarantee her and then she can get the amount.

    Is this is the procedure? can you guide us? please

    Reply
    • Sinu-Hearing it first time “asked for guarantee that an account holder of same bank with equal balance as FD amount can guarantee her and then she can get the amount.”. Let them give the same in written. Then we discuss further.

      Reply
  154. Just a query. A and B have a sb account in a bank as E or S status. A dies, but B does not intimate the bank. Can he continue to operate the account, withdrawals only by cheques or ATM card?

    2) A and B have a term deposit with E or S. The first name i A. He has the fd receiptss duly discharged with his signature on a revenue stamp. Cam B claim the amount prematurely asking the bank to deposit the proceeds inthe E Or S SB, and then to continue the sb account.

    These are queries as getting a death cerficate takes quite a long time in some states and B needs the money urgently.

    Reply
    • Venkataraman-1) Yes, he can continue. However, the best practice is to inform the bank immediately. Withdrawing FDs through cheque or ATMs not possible. If you not inform about the death of first holder, then banks deposit the maturity amount to A’s account.
      2) It is either or survivor. B will come into picture only when A not there.

      Reply
  155. Dear Sir, My father has expire 20june 2016 (his bank aount is in Bank of india). he made a FD Rs1000000 and mention nominee to my mother. But my father’s has Rs1300000 lakhs also in same acount without FD . He had no nominee mention in their acount. bank are not ready to transfer 1300000 to my mother . they are required succesion certificate for 1300000.
    We are in problem please suggest

    Reply
  156. Great Article and Thank You for Your insights!

    My Mother who is in her 90’s now, has several Fixed Deposits Certificates between two major banks in India. She has listed different individuals (a combination of Children, Grandchildren, and Great-Grandchildren) as her beneficiaries for the various CDs. She and her heirs are NRIs and are no longer Indian Citizens.

    Question –What things could she put in place now to ensure that upon her death there is a seamless transfer from her name to the specified beneficiary. All she has done now is listed an individual as the beneficiary on the CD with the bank. Should she put in place anything else, such as a will or another document?

    Thanks you

    Reply
    • Soumya-Considering her age, I suggest a WILL which is registered also. Because I found complications in her investments as she spread her investments among many by the way of nominations. The mere nomination will not create ownership on the asset. Nominee acts like a trustee. Hence, if legal heirs knock the door of the court, then the nomination is just become for namesake.

      Reply
    • Sir my father was died in 25 years before he wsa fd deposit 25000 I have a original bound I ask the sbi manger.i dont no who was nominee know how to approach in this problem. Pls help me

      Reply
  157. In case of death is panel rate of recovery applicable? Suppose a person had a fd for 10yrs @10% and died after 5yrs. At start of fd 5yr rate was 9%. Which rate will be applicable?

    Reply
    • Gaurav-It is for past rate it will be 10% and for fresh FD it will the rate of that day.

      Reply
  158. MY UNCLE DIED AFTER THE DEATH OF HIS WIFE (AUNT) AND HE DO NOT HAVE ANY ISSUE/CHILDREN.
    HE SURVIVED BY HIS FOUR SISTERS. CAN THEY BE THEIR LEGAL HEIRS FOR CLAIMING FIXED DEPOSITES, PENSION, SAVING A/C ETC.

    Reply
  159. Dear Sir
    My mother, who had expired on 4th july 2016,and my sister have few Term Deposit accounts with a nationalised bank with either or survivor clause(form 15h submitted in April 2016).when contacted the bank for deletion of the name of my deceased mother(first a/c holder & Sr. citizen) Bank response is as per deposit policy where the first holder is sr.citizen and second holder is not Sr.citizen,if the first holder dies then either the a/c to be closed prematurely or the account can be continued in the same status till maturity and after maturity the second holder can claim the matured amount as survivor.
    Now my queries are after the death of first a/c holder if the a/c is continued in the same status how is it possible to submit Form 15h for non deduction of tax as the second holder is not a sr citizen and is is correct that the first name can not be deleted.Next can the second holder submit Form 15 G if the a/c continues in same status.Apart from the problem of Form 15G my sister has no problem in continuing the a/cs .Lastly if the a/c continued after deleting the first sr citizen holder(if bank agrees) what will the rate of intt as the existing a/c attract higer rate of intt due to sr citizen.
    Please help and guide accordingly
    Regards
    Abhijit Sarkar

    Reply
    • Abhijit-It is example with many cases. But don’t delay. Submit the death certificates, but you can continue account in your sister’s name (with lower rates). They can’t force you to close the FD.

      Reply
  160. Hi,

    Reading your above post which was very helpful, kindly please let me know if after my father’s expiry my mother is the legal heir so from which source can I get this claimed to prove to the bank. (since FD is in the name of my father has no nomination and I being the only daughter my consent is not required to be given to the bank, how to prove that wife is the legal heir.)

    Reply
    • Neha-Approach the bank and produce the death certificate and your mother’s KYC documents.

      Reply
  161. My Father passed away recently and in that context, I have 2 questions:

    1.) He has couple of Fixed Deposits (including 1 Tax saver Fixed Deposit) with my name as “Nomination”. I want to know if i can still continue with these fixed deposits till maturity and then claim the proceeds. I am asking this question as both of these Fixed Deposits were done when interest rates were high and as he was a senior citizen, he was also given 0.5 % point more in terms of rate of interest. Kindly clarify.

    2.) He also has couple of RD accounts and similar to FD’s were opened when interest rate was high. Kindly let me know if i can continue with these as well.

    Appreciate your reply.

    Reply
    • Gaurav-1) It is better to inform them NOW. Don’t take it risky situation. They may give you so many illogical process if you delay.
      2) Follow the same as I advised in your first doubt.

      Reply
      • Should the bank allow the nominee to continue the RD a/c when they know that holder of the account is deceased?

        Reply
  162. I have deposited money in post on my father’s name in SCSS. The deposit in on single name with nomination. If any thing happens to father, then whether i can continue deposit till the maturity date? (since the senior citizen benefit is there for the interest)

    I have inquired to post agent. He says that if any thing wrong will happen, you are not liable to get the interest on the deposit till maturity.(since the senior citizen benefit is there for the interest and holder is not alive) You have no option but to claim the deposit immediately as nominee without waiting for maturity.

    If you will wait till maturity and will produce the claim at maturity, your interest from death of holder till maturity will be recovered by post.

    Please clarify this point.

    Thanks and regards

    Reply
  163. Thanks for the wonderful article and answering everyone questions!

    I have little complex case and would require your comments.

    My Mom has FD for 3 lakhs (multiple FDs) and nominee of those FDs are my mother’s brother family(3 person). Same FDs have been used to get educational loan for foreign studies of my cousin(1 member in the same family). Now, the loan has been paid completely.

    Question:
    1. As the FD is used as collateral for loan, nominee still has rights to claim the amount?

    Note: I am the only legal heir for my mother.

    Reply
    • Raj-Nominee can’t claim the amount directly. He act as a trustee to transfer the amount to LEGAL HEIRs.

      Reply
  164. Dear sir,

    Kindly help me in the following matter

    I have fdr of my grandfather in SBI Bank which amount of near about 3,00,000/-
    but now ma grandfather is died. the above mention frd is without nominee . but i have register will made by my grand father which clearly show that me or my brother have right to widraw 75000/- for each from the frd which contain in bank. but i have no link with my uncles ( uncles means 3 brother of my father or son of my grand father
    ) soo kinldy suggest me right way how to redeem my share of 75000/- as per will which deposit in bank in the form of fdr.

    with warms regards
    baljeet singh
    7307065533
    9888570399

    Reply
    • Baljeet-You have to visit bank with the WILL and his death certificates. They will explain the whole process.

      Reply
  165. Sir,
    My mother &father had some fd’so in nationalised bank both died in car accident. As per banks rule we both brothers get probate of will.on claim my brother have made objection’s.
    Are we both required for make a claim as per probate of will.can bank deny my share .
    Regards

    Reply
    • Joshi-Yes, banks are right if both brothers name mentioned in will.

      Reply
  166. My father passed away last month; he has a recurring deposit which will mature next year (Nov 2017). Monthly RD payment is Rs 1 lakhs. I’m the nominee of this RD; can I continue this RD by depositing into his saving account every month? Is there any legal problems with continuing this RD?

    Reply
    • Abhishek-Don’t do that mistake. Whether there are legal issues or not that is secondary. But inform to bank or post about your father’s death immediately.

      Reply
  167. Hi Basavaraj,

    I hold 2 FDs at an SBI branch in Bangalore jointly with my father and brother, I also have an SB account in that branch.

    My father and my brother hold SB accounts in the SBI Thalassery branch.

    The interest from the FDs were being transferred to my father’s SB account.

    My father passed away recently. I have obtained his death certificate.

    I want to stop monthly transfer of interest and retain the FDs in mine and my brother’s name.

    To do so I plan to request the bank to delete my father’s name from the FDs, are there any grounds under which the bank can deny the request?

    I am of the opinion the above is the best way to do so, if not please let me know the best way to achieve this.

    Thanks and regards,
    Shaanth

    PS: The FDs were opened with interest rates eligible for senior citizens at the time of opening

    Reply
    • Shaanth-You must request for deletion of your father’s name. There is no reasons for bank for not acting.

      Reply
      • Hi Basawaraj, Thanks for your prompt reply, I am visiting the bank tomorrow, will keep you posted : )

        Reply
          • Hi Basavaraj,

            I’d visited the bank and got this done, but missed out on posting about here, sorry about that.

            How it worked is, I gave a written letter to the Manager stating that one of the joint holders is no more and therefore I am submitting the Death Certificate for the same requesting the bank to do the needful.

            The FDs now stand in the names of the remaining holders. The FDs continues to have the same FD Account number, and the same tenure as at the time of opening the original FDs(in our case five years, so now its is for five years from the date of my submitting this application), and the interest rates would change to the prevalent rates(in our case it went from 9.5% to 7%).

            Thanks and regards,
            Shaanth

            Reply
  168. Hi,

    Need an urgent help. Actually my father has done a fixed deposit in Indian bank in my name some 25 years back. In those days bank account was not mandatory to do the Fixed Deposit. The name in the FD was Ranju Kumari Agarwal. But in all my documents its Ranju Agarwal. Recently i got the DD which says Ranju Kumari Agarwal whereas i don’t have any account in that name. In all of my bank accounts its Ranju Agarwal. How should i get my father’s hard earned money?. Please help.

    Reply
    • Ranju-Only middle name is missing. I don’t think it creates any problem.

      Reply
  169. Dear my fathers was expired before three months ago and wanted to get my father amount from SBI bank Branch so i dont have his passbook and acc details so how should i get that amount

    Reply
    • Yuvraj-By quoting your father’s PAN number, you can track his account number. Not a big issue.

      Reply
  170. DEAR SIR,

    HELLO I WANT SOME INFORMATION AGER JO DEPOSITOR HO WO JINDA HAI OR NIMINATION PERSON KI DEATH HO JAE TO US NOMINEE KA HAKDAR KON HOTA HAI YA DEPOSITOR NOMINEE KA NAME CHANGE KRWA SKTA HAI.

    Reply
    • Dear Sir,
      Suppose, I have one joint savings Bank account with my mother. My mother is first account holder and myself is second account holder. From this account, we made 4 fixed deposits in the name of first account holder (Mother) with 4 different Nominees with self- operational instruction (Mother). What will happen after mother die? Can nominees claim those four fixed deposit amount which was made deducting from our joint savings bank account? Or can I claim those fixed deposit amount since it is linked with joint savings bank account with me? Kindly clarify.
      Regards,
      Nandita

      Reply
      • Dear Nandita,
        Your savings account holding or nomination details in no way related to FDs your mother created. They are treated separately for nomination and ownership.

        Reply
  171. Dear Sir,

    My father recently expired, he was having fix deposit of around 20 Lacs. My mother is a joint holder of that account and she is also a working lady. I have one question as if my father expired that amount is being transferred to my mom, she will be paying the tax next year. In case my mom decide to transferred half of the amount to me and my younger brother is she have to pay the tax for that amount or we have to pay the tax on it would be counted as a gifted money from parents.

    Reply
  172. I AM HOLDING TDRs IN ALLAHABAD BANK WITH MY MOTHER IN LAW (A SENIOR CITIZEN) ON EITHER OR SURVIVOR BASIS. NOW MY MOTHER IN LAW (FIRST HOLDER) HAS EXPIRED AND THE BANK IS NOT READY TO DELETE HER NAME. WHAT TO DO NEXT?
    SINCE TAX (TDS) WILL BE DEDUCTED ON THESE TDRs IN THE NAME OF MY MOTHER IN LAW AND FORM-16 WILL BE ISSUED IN HER NAME. BOTH OF US ARE FILING IT RETURNS REGULARLY. PLEASE ADVISE.

    Reply
    • Sunita-What reason prompting them from not deleting the name of your mother-in-law?

      Reply
      • Since the TDRs were issued with Sr. Citizen’s Rate of interest, ie. 0.5% over & above normal rates.

        Regards

        Reply
        • Sunita-Yes, I know that. But it does not mean that they must not upate the death of holder. It is wrong.

          Reply
          • Thanks & Regards

            Reply
  173. sir,

    From today 400 days one FD has been opened solely in my mothers name ( Account Holder) by IDFC Bank. Being the only son I am the registered nominee in the FD application .What happens in case of FD account holder death during the duration of FD. What are the formalities to be completed in case of death of account holder . What are the obligations, rights & duties of nominee during the duration / maturity of FD .

    Reply
    • Khair-If death occurs of the FD holder, then you are eligible to withdraw that amount. You have to produce death certificate, FD certificate, and your KYC details. To be frank, nominee not turn out to be owner of that asset. But a trustee to act as to pass on the asset to legal heirs. However, in your case you the sole legal heir. Hence, you automatically turn to be owner.

      Reply
      • THANX A LOT for such a prompt and genuine reply authenticated to mail id also. Once again thanx

        khairsukh

        Reply
  174. My Uncle is having deposit with Bank of Baroda. He is unmarried. He had not mentioned nominee name on FDR. But, my aunt (unmarried) is legal heir to my uncle`s all deposits. Accordingly she drawn all deposits from other banks except from Bank of Baroda. She went to the bank several times, but the bank officers are not acted properly. Bank officer is asking for Succession certificate. Since, she is a senior citizen she can not run around the court and it is also understand minimum six months time will take to get succession certificate. In academic interest I would like to know In india more than 50 crores bank accounts in all our banks and out of this 30% account holders may not mention nominees. If every bank insist succession certificate, then how many courts we require ? I want to know the RBI Rules and regulations. Kindly advise. Regards

    Reply
    • Prasad-Your concerns are genuine. But rules made to resolve ambiguities.

      Reply
  175. Sir, My mother have some FD for Rs.13 lacs jointly with my younger brother in Oriental Bank of Commerce, Behala Br., Kolkata operation mode is either or survivor. Now my brother is not looking after my mother and she is recently staying with me. She had no another fund. She want to premature her entire amount but my brother is disagree to sign. We went to branch together and they are not co-operated with us and telling without his sign they can’t premature. Is it possible to premature without his sign and they can issue pay order for that? I have already discussed with ICICI Bank and they are telling it is possible to premature on the basis of 1st holder’s signature. My brother had cleverly opened also savings a/c with my mother as same mode. Or is it possible to get the amount after maturity without his sign. I am struggling with a very poor salary. Can you advise what to do urgently? It may happen separate rules for any other Bank?

    Reply
    • Avijit-If the account is in either or survivor, then who is the first account holder?

      Reply
      • My mother is the 1st holder.

        Reply
        • Sir, My mother operated the a/c. jointly. She is the 1st holder and my brother is the 2nd holder.

          Reply
          • Avijit-First check the account is joint holding or either or survivor holding.

            Reply
          • Sir, in the certificate it is clearly mentioned amount received from Smt.Arati Dutta (mother) Joint Holder – Biswajit Dutta (brother) and payable to either or survivor. Bank is disagree without both the signature and their presence. Is it as per RBI guidelines? Please inform immediately.

            regards
            Avijit

            Reply
            • Avijit-Then it is JOINT ACCOUNT, where your brother’s signature also MUST along with mother’s.

              Reply
              • Sir, there is no any chance to prematurity or we can get without his sign at the time of maturity?

                Reply
  176. Dear Sir,

    My Name is Arshad, my late grand ma put fd in co-operative bank which come under rbi. the nominee is belong to me. now my aunt (Buwa), given written complaint & claiming the rights on fd. now bank is asking me settlemen letter from my aunt & aunt asking for money . what should i do? please help me from last one year my case is court but is getting delay by bank.

    Reply
    • Arshad-Court settlement to identify a legal heirs must in this case.

      Reply
  177. Thanks a lot for your reply. But the bank has already given an interest certificate for the FY2015-16 in the name my late husband whose income tax for the previous all the years already been cleared and file has been closed after intimation of death. Now you please suggest what to do. I have already intimated the bank i.e ‘State Bank Of Bikaner & Jaipur- Ballygunge Branch. Rash Behari Avenue. Kolkata – 700029 for issuing the certificate in my name i.e in the name of the survivor for which I will pay the tax and also the interest received by me for the FY2015-16 and not my late husbend. How I will pay tax in the name of my late husbend who has not received the intetest. I want to pay tax on the interest income which I received from bank. Please also suggest what I will do as a Widow. This I also intimate to the highest authority of the concerned bank and also to the Income Tax authority for their noting purpose.

    Reply
    • Sarkar-First write to higher authorities of bank. If they not heed, then approach banking ombudsman.

      Reply
  178. My husbend and myself had a fixed deposit for 10= years which will mature in 2021 as either or surviver basis. But before 2 years my husband died and the death was intimated to sbibj bank and recorded by them. I continued the same fixed deposit and the interest i received is taxable and i pay taxes for this. But now when i asked for the intetest certificate they issed the same in the name of my late husbend. They also said that from next time they will deduct tax in the name of my late husbend. My husbend,’s death also intimated to incme tax authority and cleared all tax liability and file is closed by them. Now my question is 1) can i continue the fixed deposit till maturity and pay taxes on interest received by me. 2) can he bank deduct tax from a death person and issue a tax .deduction certificate

    Reply
    • Sarkar-When you intimated to bank then FD will be in your name. How can they deduct tax in your husband’s name? The FD name changed in your name. Bank can deduct the tax on deceased person’s name for that particularly FY in which death occurred. Later on it must be in your name.

      Reply
  179. Sir
    I am from a Hindu family
    My father died.
    I have mother and 2 brother.
    My father have done FD and nominee of that is my elder brother.
    How will be owner of this money and what will be process?
    If brother have taken money form bank than what I should do?

    Reply
    • Amit-According to rule, your mother will be the first legal heir of this FD, not even your brother.

      Reply
      • But bank will give money to my brother right? as his is nominee?
        How my mother can have this money?

        Reply
        • Amit-Nomination is not creates ownership on asset. He acts like trustee and then he has to transfer the money as per legal heir laws. Nomination is just an act to transfer the asset to legal heir. He can’t claim ownership.

          Reply
          • Thank you very much for your helpful information.

            Reply
  180. hi

    ‘A’ is bank fdr receipt holder.but now he want to change his fdr name on her daughter
    it possible to change the name

    Reply
  181. Dear Sir,
    My Father (Age: 72 yrs.) has all his FDs in joint holding, with “Anyone or Survivor” option, with me in a cooperative bank, maturity in 2020. In all FDs, he is the first account holder & has got benefit of additional interest for Sr. Citizen. He passed away in Dec-2014. I submitted his death certificate to the bank. Bank suggested me to continue the FDs with Sr. Citizen Interest benefit till maturity. I continued the FDs. Now the bank deducted TDS from interest & gave me TDS certificate & form 16 in my father’s name. My father has the only income from the interest on these FDs, since his retirement. Hence he was always under tax exemption limit. Now the bank applied TDS @ 10%. As per my salary income, I fall under the tax slab of 20%.
    1) Now what should I do? Either file the IT return in the name of Father (is it legal?) & claim the TDS deduction or add the interest amount in my income & pay remaining tax (under my PAN)? Please suggest me a way out.
    2) Also Can my brother & sister claim a part in the FDs maturity amount?

    Reply
  182. my father died on 26.12.2015. I submitted his FDs for premature encashment . please tell me first of all willthere be penal interest? secondly what will be the rate of interest upto the date of encashment.
    Will I get the interest upto the date of encashment at the rate specified in the FD or a rate applicable as per the days the FD has remained with the bank.

    Reply
    • Kasturi-In case of death, I don’t think they penalize you. The rate of interest applicable will be the at the rate already booked.

      Reply
  183. can the name of the first holder Sr citizen after death be replaced by another name also Sr. citizen proposed by the second holder in a FDR which has yet not matured. Pl give RBI guidelines.

    Reply
    • Kalyan-No, if second holder survive then the second holder be the depositor.

      Reply
  184. My father died on 14th Feb,2016.All his fixed deposits are in “either or survivor” mode .He was a senior citizen therefore the interest rate was much higher than it is now,as my mother is a non-senior citizen.All this FDs will be matured in 2017.
    We informed bank about my father’s death and they said they could not delete the first holder name.So we have to continue this FD and at the of maturity we simply have to provide them death certificate and then we can get the money.
    Is it right?Will there be any problem at the time of maturity as we have not provided them death certificate earlier?

    Reply
    • Payel-Better you provide the death certificate now and let the FD continue as usual.

      Reply
  185. Sir,
    Ex. Bank staff expired on 20/3/16. All the FDRs are E or S mode. If I delete the name of 1st holder then what will be the effect ?
    1. Senior Citizen benefit
    2. Ex Bank staff benefit
    His wife not yet become Senior Citizen. Will the interest rate be the same or the bank authority will not allow those benefits?

    Reply
    • Avijit-As per rule, banks can’t force the surviving holder or nominee to discontinue it. But it is better to update the death of holder with bank as an investor.

      Reply
  186. My mother died in March 2016. She was a senior citizen and had a FD for a long term duration with me – son – as a second holder. Now I m in a dilema when to inform bank about her death and claim the deposit.

    Being a senior citizen she used to earn higher interest also. Secondly not the time is to fill up the form 15g/h what should I do. Pl guide

    Reply
  187. Hi,

    This is sandeep here i need your advise.

    My father died in Jan,2016. He had one FD and his salary account in maha bank he renewed FD in June 2015.
    But he fail to register nominee. Now the bank required indemnity bond and consent letter from my Sister and Me.
    As my mother is claimant. We have submitted the same. But now Bank wants consent letter also form grand mother as she had right to claim. But my grand mother is above 80 yrs and she is in my home town with my uncle who is taking care of her.she could not move. so i want to know isn’t my and sister consent letter is enough to settle the claim.

    can bank operate account for 20 year without any nominee.

    Please advise on same.

    Thanks,
    Sandeep

    Reply
    • Sandeep-Your mother is the first legal heir of your father. She first can claim the FD. No other’s consent is required. Simply they are creating issues.

      Reply
      • Hi,

        Thanks for reply.

        Is there any authority i can talk and take help.

        Thanks,
        Sandeep

        Reply
  188. ONE OF MY CLIENT WANTED TO ME AS NOMINATED PERSON FOR THEIR DEFAULTED CORPORATE FIXED DEPOSITS BECAUSE HE IS 72 YEARS OLD AND HIS WIFE RECENTLY PASSED AWAY, THEY BOTH HAVE CFD, MAY I ASK WHAT WILL BE THE SOLUTION

    Reply
  189. Sir,
    I lost my father few months back on 3rd August 2015.He was a bank employee and upon his retirement in 2011 he created an FD account(either of survivor) with my mother being the joint holder.He was the 1st account holder.At that time interest rates were higher than what it is now.On top of that he was given 1% extra on account of being a staff member and another 0.5% on account of being a senior citizen.Now the maturity of the FD is in the year 2021.My mother is a non-senior citizen.

    Can we delete my father’s name from the FD and continue with the FD in my mother’s name at the same rate of interest? If not then what will be the change in rate of Interest? Do we need to make premature withdrawal in order to delete my father’s name from the FD?…….I am at my wits end.I you can shed some light on this matter,I’ll be very grateful.

    Reply
    • Soumya-Once you delete your father’s name then the FD will act like your mother’s FD where they not provide the additional benefits provided to your father. You first inform the bank about death and turn it to be single holder in your mother’s name.

      Reply
      • Thank you for your reply,but I have been told by bank officials that it is not possible to delete my father’s name and continue the FD in the name of my mother since she is not a senior citizen and therefore not eligible for the extra 0.5% for senior citizen.They are implying that the only way out is to redeem this FD and reinvest them in my mother’s name at the current interest rate.I am not entirely convinced by their logic.Besides if we do as they are suggesting,it will lead to huge financial losses for us.My father’s entire retirement plan was based on this.
        What is the use of having an ‘either or survivor’ clause when my mother can’t even continue the FD in the absence of my father?? On the other hand my father’s name must be deleted otherwise it might lead to legal issues. Is it not possible that they just take away the extra 0.5% and let my mother continue with the remaining rate of interest as it is??….Please Help.

        Reply
        • Soumya-I understand your concerns. But forcing to close the account is not as per RBI rule. They must give both options of either to continue the FD as usual or redeem it. But can’t force to redeem it. If they are not ready to heed, then let them show the RBI ruling on the same. I firmly believe that they can’t for your mother to liquidate the FD.

          Reply
          • Thank You for the help and reassurance.

            Reply
  190. Sir, I have FD in the name of my grandfather (senior Citizen) first holder and my mother (Non Senior Citizen) is a second holder.
    The FD interest rate is as per senior citizen rate. My Grandfather passed away in the year 2013 and the maturity of the FD’s is year 2021. What do you suggest, (1) Shall i let it go as it is without removing my grandfather name till it get matured in the year 2021?? OR
    (2). Shall i remove my grandfather name and continue with my mother name as single holder?? will there be any change of interest rate??
    (3) Is it possible that If i remove my grandfather name, my mother will become the 1st holder ,so can i put my name in the 2nd holder ?? in this scenario will there be any change in interest rate??
    PLEASE ADVICE.

    Reply
      • Yes Sir, Thanks alot.

        In a joint fixed deposit who is applicable to pay tax? 1st Holder or 2nd Holder?? Or BOTH??
        What is the capital amount is invested by 1st holder and interest is credited into second holder account??

        Reply
        • Rohit-Both are liable to pay tax. But usually banks issue TDS in the name of first holder.

          Reply
          • So , the tax on interest will be equally divided i.e if the total interest is Rs.12000/- Then 1st Holder & 2nd holder have to show Rs.6000/- each as income. AM i Correct??

            Reply
              • is this same for Post Office Monthly Income Scheme??

                Reply
                • And can i get TDS return??

                  Reply
                  • in continuation to my above chat….

                    is it ok if i show the interest income in the Account of a Holder whos TDS is Deducted??

                    Reply
  191. Sir,
    Both my parents expired and have left a will, can I claim with that and it says there final wishes?

    Reply
      • Thank you, i mean claim fixed deposits they have?

        Reply
          • Sir, the depositor is no more and the nominne is also no m ore the legal heris of the nominee are claiming the amount is not illegal sir?

            Reply
            • Navalgund-What is illegal, when legal heirs claiming the amount rightly?

              Reply
  192. sir ,
    MY FATHER EXPIRED IN MARCH 2013 .I GOT AN ACCOUNT IN UBI WITH ANYONE OR SURVIVOR CLOUSE.I HAD ALSO FD IN FATHERS SINGLE NAME WHICH IS LINKED UP WITH SAVING A/C .WHAT I HAVE TO DO?

    Reply
    • Narendra-In first FD it will go to survivor. In second FD it will be to legal heir.

      Reply
  193. Sir my father expired in DEC 15, he had bank FD jointly with my mother. i am looking for a regulation which i can show to psu bank manager for deleting the first name and continue with FD in the second name. he is insisting on breaking and making new FD says never did ‘name deletion’ as such. pls advice and share the link for this regulation. Regards

    Reply
    • Arvind-The RBI link is already available in above post. Please check it. If that is not helpful for you, then let me know. I dig more to show the real notification.

      Reply
  194. sir,
    My father died on 09-04-2015. He have rental income & some fixed deposits. I am registered his legal heir and already filed return for FA 2014-15. After his death 2 months rent was credited in his bank account and TDS had deducted. TDS has also deducted on interest on fixed deposits. All the TDS credited in his PAN. Since the above income will be deemed to be my income, whether credit of TDS will be available me. If not what should I do.

    Reply
    • Neeraj-Yes, If any refund from such TDS then you will receive it.

      Reply
  195. Hi Basunivesh,

    Your Blog is Very good and the Information shared is worthy . Thanks for the sharing the good information.

    In how many years a fixed deposit to be made if we want to make the amount double.( In bank or Postoffice)

    Suppose I am depositing 1oK in Any bank for 7 or 8 yrs will this be double?

    Reply
    • Santosh-It depends on the interest rate. There is no hard rule. If interest rate is high then it doubles early if not then it takes time.

      Reply
  196. Hi my father died and his SSFD is there the account linked to that iam nominee but the bank says that there is no nominee in SSFD know tell me what is the easiest way to get my father money kindly suggest bank people not helping and telling me to come next day every time they are busy they provide me diseased claim form and still they don’t check and every time I visit the branch tell me to come next day .Kindly help me and tell me.if the SSFD money will come to account Linked to SSFD after maturity in which iam nominee.
    Regards,
    BBS

    Reply
    • BBS-Sit strictly without moving an inch, let the concerned official bend his EGO or LAZINESS. Until that happen don’t move.

      Reply
  197. My father & mother were joint holders of Fixed deposit in a bank.
    Few days back my mother died and she was the second holder. The FD has not matured yet. Can I replace my mother as joint holder before FD matures. If so what is the procedure to do so

    Reply
    • Alex-You can do it now also. It will not affect your FD maturity.

      Reply
  198. We have some bank FDR,s .some FDR,S in single name (with nominee) & some FDR,s in Joint Name all FDR,s interest quartely credited by bank in saving a/c & Bank has also deducting TDS on interest. Pls advise in case:-
    (1) If Single name FDR mature , bank will advise to give claim form death certificate etc & then they will close the saving a/c . which is not possible due to remaining FDR,s interest comes in same a/c.
    (2) In case of Joint name bank says that submitt all fdrs to trsn in second name (First holder is senior citizen & second is not senior citizen) bank will withdraw interst rate given excess as senior citizen ( while I know as per above information & IBM guidlines that the contracted rate of interest given in FDR,s bank will not reduce.)
    some FDR,s mature in 2016-17 tillbank will deduct TDS & the same is refundable or not .
    pls advise.

    Reply
    • Mahendra-1) Yes. 2) They can’t reduce the interest rate. TDS deduction is their right. You can show the same and if the income is less than the TDS rate, then you will get refund.

      Reply
  199. I assume the process to be same for accessing lockers which are on the name of deceased person, am I right?

    Reply
      • My grand mother have two fd . In 2013 .. and she died in 2015 ..Sir my grand mother was died . And there is no nominee and my father , seven brother and sister .. but after dead of grand father there is a bill of dividation . In that bill all member gives the responsibility of grand mother . How my father get the money ..

        Reply
  200. A small correction required in the above article.

    Either or Survivor is the best option, as either beneficiary can withdraw the amount without any additional paper work. Even notifying the demise is not required, however the bank will release the amount in the name of the first beneficiary.

    In Anyone or Survivor at the time of opening of the account the “Anyone” has to be specified and only this person will be allowed to transact, in case of the demise of the registered “Anyone” the Survivor will need to do the paperwork. In “Anyone or Survivor” the transactions are solely handled by the registered “Anyone” which is different from “Either”.

    “Anyone or Survivor” is a good option when you want the joint holding but without giving access to your funds to the other holder. Best for senior citizens when they have their child’s name added to accounts.

    Thanks

    Reply
      • Anyone or survivor option will not allow to close FD on premature basis as signature of all holders will be required hence opt for this option with premature closure option….so as only one person can do the formalities..

        Reply
        • Niraj-I don’t think so. As the name implies “Anyone OR Survivor”, so not signatures of all holders required like joint account holding.

          Reply

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