• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Site Logo

BasuNivesh

Personal Finance Blog

  • Home
  • Service
    • Fee-Only Financial Planning Service
    • Financial Wellness Session
  • Blog
  • Old Articles
  • About Us
  • Contact us
  • Media
  • Search

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

November 30, 2015by Basavaraj Tonagatti

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.
  • IndemnityBond (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.

Category: Banking, Investment PlanningTag: Bank Fixed Deposit (FD), Depositor dies before maturity

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

Previous Post: « Term Insurance-Claim Settlement Ratio no more a big criteria
Next Post: New EPF Withdrawal Forms-Withdraw without employer signature »

Reader Interactions

Comments

  1. Karan

    January 24, 2021 at 12:20 AM

    Hi Sir, My Father had done 5 year term deposits in post office and my mother is nominee. Now when we are doing the claim they are changing the rate of interest of 5 year TD to 1 year TD and even deducting amonut of difference in rate of interest. My father died in Nov 20. Is it possible how can they change rate of interest as my father died thats why we are doing the claim otherwise it would have completed 5 years. Are they right can they do it?

    Reply
    • Basavaraj Tonagatti

      January 24, 2021 at 12:05 PM

      Dear Karan,
      They are wrong. They have to pay the interest as per 5 years FD till the death of the holder.

      Reply
  2. Girish Halankar

    January 21, 2021 at 3:48 PM

    My father expired in the year 2007 and we made a death claim in the year 2021 as we were not aware about the existence of FD in the earlier years.
    The total maturity value of FD as on day was 132000 approximately but the bank provided us with only 62000 approximately
    They said till death of the account holder FD interest is being paid but there after interest is being provided on Saving interest rate basis.

    Is it correct?

    Reply
    • Basavaraj Tonagatti

      January 21, 2021 at 9:31 PM

      Dear Girish,
      Yes, they are correct.

      Reply
  3. Rajib Mukherjee

    January 18, 2021 at 11:38 PM

    Sir,
    My father in law has died on 26/05/2019 and he has a fixed deposit joint account with his wife ‘former or survivor’. The term will be mature on March 2021. Unfortunately we have no received copy from SBI that we provide the death certificate of the former. Now SBI is saying to refund the interest which we drawn. What should we do ? We had no idea about this. Kindly help us.

    Reply
    • Basavaraj Tonagatti

      January 19, 2021 at 6:59 PM

      Dear Rajib,
      As his wife is now a survivor, she can continue the FD till maturity. You no need to return the interest. Just update the death of the primary holder with the bank.

      Reply
  4. Ritu

    January 15, 2021 at 6:29 PM

    Ritu..
    My father expired on 4.10.20, he had bank fd in in pnb ..with my mother(nominee). And this maturity will be completed in 21jan.21…
    Now the bank manager says that .. they will not provide the interest… They will provide the interest till 4.10.20. But when we was meet before they not told me nothing else like that …
    So sir pls advice me

    Reply
    • Basavaraj Tonagatti

      January 16, 2021 at 6:36 PM

      Dear Ritu,
      You have both the options like either you can discontinue or continue till maturity. They can’t force you to discontinue.

      Reply
  5. Nehal Mayekar

    January 9, 2021 at 12:12 AM

    My dad has Account and TDR which matured over two years.
    The saving banks account has me the only son of my parents as nominee but TDR (fd) doesn’t have any registered nominee
    The SBI bank is telling me to give them Affidavit and Indemnity bond for closure of that FD.
    To which I am saying is FD should have had nomination in first place without nomination shouldn’t have been registered. So be it whosoever fault it might be it banks or my Dad I am not willing to entirely take responsibility of expenditure for this entirely.(Affidavit and Indemnity). I have also shown them the ration card and details.
    Is my stand correct.

    Reply
    • Basavaraj Tonagatti

      January 9, 2021 at 10:26 AM

      Dear Nehal,
      Merely showing certain documents is not valid. Your Bank is right.

      Reply
  6. Yogesh

    January 4, 2021 at 4:28 PM

    Hey sir, my father has fixed deposit with auto renewal activated for 2 years in punjab and sind bank but he died on 22 Nov 2020. Now bank says that you will get claim after 2 years as per rbi guidelines. Please tell what can we do.

    Reply
    • Basavaraj Tonagatti

      January 4, 2021 at 8:22 PM

      Dear Yogesh,
      You have all rights to liquidate now also.

      Reply
  7. Harisha Prabhu

    December 15, 2020 at 2:58 PM

    My name is harisha Prabhu and I am a nominee for bank account of my mother.

    In bank record the my name is entered as harish prabhu instead of harisha Prabhu.

    I have valid proof for Harisha Prabhu. Please let me know bank can reject my claim

    Reply
    • Basavaraj Tonagatti

      December 15, 2020 at 3:07 PM

      Dear Harish,
      They may but better to update the name.

      Reply
  8. Karishma

    December 15, 2020 at 12:02 PM

    My Uncle has SB A/c with one bank with his wife as nomination. In Saving nomination form, They have provided option to set saving A/c nominee to all future A/c which will open under particular CIF, which was opted at time of SB A/c opening. Uncle afterwards made two FDs and no nomination form filled as previous said option opted. Now uncle died.

    1) So whether aunty alone can withdraw the amount or succession certificate to be presented?
    2) Is it valid if Bank automatically nominates person in FDRs who are nominee in SB A/c?

    Reply
    • Basavaraj Tonagatti

      December 15, 2020 at 5:04 PM

      Dear Karishma,
      Check whether such an undertaking is only for a savings account or for FDs too. If it is for FDs, then she can claim as she is being the nominee. Also, in this case, she is being the first legal heir, I think it is a hassle-free settlement even if the nominations are not mentioned.

      Reply
  9. Soniya

    December 5, 2020 at 3:46 PM

    Hello sir..
    My father died on 23 November.. he has many fd’s in bank and I’m the nominee of all those FD’s.. Now myself brothers will approach the bank with the death certificate.. now bank is going to give them all the information.. like the bank will tell them about each and every FD amount? Or they going to contact me because I’m the nominee.. please help.. Please ignore the grammatical mistakes.
    Thank you

    Reply
    • Basavaraj Tonagatti

      December 5, 2020 at 9:40 PM

      Dear Soniya,
      Please approach the bank and submit the necessary documents and claim it as you are the nominee.

      Reply
  10. Afaf Shahroz

    December 4, 2020 at 7:44 PM

    Respected Sir,
    My father expired 7years ago. He had a fixed deposit in his name but without any nomination. How can we claim the money?

    Reply
    • Basavaraj Tonagatti

      December 4, 2020 at 8:23 PM

      Dear Afaf,
      You have to approach the bank with death certificate and legal heir certificates to claim the FD.

      Reply
  11. Yamuna Singh

    November 16, 2020 at 11:44 AM

    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
    • Basavaraj Tonagatti

      November 16, 2020 at 9:24 PM

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

      Reply
  12. prema s shangril

    November 3, 2020 at 11:51 PM

    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
    • Basavaraj Tonagatti

      November 4, 2020 at 12:51 PM

      Dear Prema,
      It will be credited to your mother’s account.

      Reply
  13. Mahesh

    October 21, 2020 at 9:08 PM

    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
    • Basavaraj Tonagatti

      October 21, 2020 at 9:56 PM

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

      Reply
  14. Kumar

    October 11, 2020 at 5:01 PM

    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
    • Basavaraj Tonagatti

      October 12, 2020 at 10:16 AM

      Dear Kumar,
      You have to follow what the bank advised.

      Reply
  15. Mervyn M

    October 1, 2020 at 6:49 PM

    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
    • Basavaraj Tonagatti

      October 1, 2020 at 7:05 PM

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

      Reply
  16. Makrand

    September 26, 2020 at 9:55 AM

    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
    • Basavaraj Tonagatti

      September 26, 2020 at 2:30 PM

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

      Reply
      • Makrand

        September 26, 2020 at 5:22 PM

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

        Reply
        • Basavaraj Tonagatti

          September 26, 2020 at 8:18 PM

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

          Reply
          • Makrand

            September 27, 2020 at 4:31 AM

            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
            • Basavaraj Tonagatti

              September 28, 2020 at 7:51 AM

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

              Reply
              • Makrand

                September 28, 2020 at 8:31 AM

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

                Reply
  17. Tribhuwan Kumar

    August 15, 2020 at 11:00 PM

    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
    • Basavaraj Tonagatti

      August 17, 2020 at 8:26 AM

      Dear Tribhuwan,
      No.

      Reply
  18. Swapnil

    July 29, 2020 at 1:02 PM

    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
    • Basavaraj Tonagatti

      July 29, 2020 at 7:43 PM

      Dear Swapnil,
      As per me, it is completely wrong.

      Reply
  19. Priyal Patel

    July 27, 2020 at 1:17 PM

    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
  20. M D N

    July 24, 2020 at 5:47 PM

    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
    • Basavaraj Tonagatti

      July 24, 2020 at 9:24 PM

      Dear MDN,
      Yes.

      Reply
  21. Akshay

    July 23, 2020 at 8:46 PM

    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
    • Basavaraj Tonagatti

      July 24, 2020 at 7:55 AM

      Dear Akshay,
      NO.

      Reply
      • Alshay

        July 24, 2020 at 1:17 PM

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

        Reply
        • Basavaraj Tonagatti

          July 24, 2020 at 9:29 PM

          Dear Alshay,
          No such limit.

          Reply
        • Jasmine

          October 27, 2020 at 10:09 PM

          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
          • Basavaraj Tonagatti

            October 28, 2020 at 12:26 PM

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

            Reply
  22. Shilpa

    July 22, 2020 at 8:55 PM

    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
  23. arvind gupta

    July 9, 2020 at 3:18 PM

    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
    • Basavaraj Tonagatti

      July 9, 2020 at 10:06 PM

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

      Reply
  24. Anusha

    July 2, 2020 at 12:12 AM

    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
    • Basavaraj Tonagatti

      July 2, 2020 at 1:26 PM

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

      Reply
    • Ukmishi

      October 21, 2020 at 7:15 AM

      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
      • Basavaraj Tonagatti

        October 21, 2020 at 12:45 PM

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

        Reply
  25. Rahul

    July 1, 2020 at 6:32 PM

    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
    • Basavaraj Tonagatti

      July 1, 2020 at 8:59 PM

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

      Reply
      • Rahul

        July 1, 2020 at 11:40 PM

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

        Reply
  26. ADITI

    June 11, 2020 at 9:48 AM

    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
    • Basavaraj Tonagatti

      June 11, 2020 at 8:49 PM

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

      Reply
  27. Rew

    June 9, 2020 at 10:47 AM

    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
    • Basavaraj Tonagatti

      June 10, 2020 at 6:38 AM

      Dear Rew,
      Approach the concerned bank.

      Reply
  28. Susmita Sengupta

    June 8, 2020 at 6:36 PM

    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
    • Basavaraj Tonagatti

      June 8, 2020 at 7:21 PM

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

      Reply
      • Susmita Sengupta

        June 8, 2020 at 11:04 PM

        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
        • Basavaraj Tonagatti

          June 10, 2020 at 6:43 AM

          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
  29. Susmita Sengupta

    June 8, 2020 at 8:31 AM

    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
    • Basavaraj Tonagatti

      June 8, 2020 at 7:17 PM

      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
  30. Name Ranju

    May 28, 2020 at 7:18 PM

    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
    • Basavaraj Tonagatti

      May 29, 2020 at 10:13 AM

      Dear Name,
      Refer the above post properly.

      Reply
  31. Kishore

    May 7, 2020 at 11:55 AM

    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
    • Basavaraj Tonagatti

      May 7, 2020 at 2:00 PM

      Dear Kishore,
      Approach the bank with KYC details.

      Reply
  32. Sudipta Kumar Mishra

    April 7, 2020 at 7:22 PM

    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
  33. Sudeshna

    April 6, 2020 at 3:19 PM

    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
    • Basavaraj Tonagatti

      April 6, 2020 at 6:29 PM

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

      Reply
  34. Chaitra

    April 2, 2020 at 3:48 PM

    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
    • Basavaraj Tonagatti

      April 3, 2020 at 7:55 AM

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

      Reply
  35. Aravind

    March 6, 2020 at 12:41 PM

    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
    • Basavaraj Tonagatti

      March 7, 2020 at 6:02 AM

      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
  36. Saravanan

    February 6, 2020 at 7:32 AM

    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
    • Basavaraj Tonagatti

      February 7, 2020 at 7:14 AM

      Dear Saravanan,
      Check your luck by visiting the branch.

      Reply
  37. Sanjoy Ghosh

    January 29, 2020 at 11:41 PM

    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
    • Basavaraj Tonagatti

      January 31, 2020 at 7:18 PM

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

      Reply
  38. Kanika Bajaj

    January 16, 2020 at 10:40 PM

    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
    • Basavaraj Tonagatti

      January 17, 2020 at 5:54 AM

      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
  39. Ganesh Mahadevan

    January 9, 2020 at 8:55 PM

    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
    • Basavaraj Tonagatti

      January 10, 2020 at 5:39 AM

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

      Reply
  40. I BOSE

    October 21, 2019 at 5:17 PM

    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
    • Basavaraj Tonagatti

      October 22, 2019 at 8:46 AM

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

      Reply
  41. vinod

    October 1, 2019 at 6:23 PM

    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
    • Basavaraj Tonagatti

      October 5, 2019 at 8:37 AM

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

      Reply
  42. Subhajit

    August 6, 2019 at 8:29 PM

    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
    • Basavaraj Tonagatti

      August 7, 2019 at 6:41 AM

      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
      • Subhajit

        August 8, 2019 at 8:14 PM

        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
        • Basavaraj Tonagatti

          August 9, 2019 at 6:34 AM

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

          Reply
  43. A. DAS

    July 27, 2019 at 8:56 PM

    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
    • Basavaraj Tonagatti

      July 28, 2019 at 7:36 PM

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

      Reply
  44. Nitesh kumar singh

    July 24, 2019 at 6:18 PM

    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
    • Basavaraj Tonagatti

      July 24, 2019 at 6:51 PM

      Dear Nitesh,
      Yes, she can’t submit.

      Reply
  45. Mady

    June 29, 2019 at 12:05 AM

    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
    • Basavaraj Tonagatti

      June 29, 2019 at 7:41 AM

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

      Reply
      • Mady

        June 30, 2019 at 8:18 PM

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

        Reply
        • Basavaraj Tonagatti

          July 1, 2019 at 10:12 AM

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

          Reply
      • Mady

        June 30, 2019 at 8:22 PM

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

        Reply
        • Basavaraj Tonagatti

          July 1, 2019 at 10:11 AM

          Dear Mady,
          They are asking the right documents.

          Reply
      • Mady

        June 30, 2019 at 8:27 PM

        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
        • Basavaraj Tonagatti

          July 1, 2019 at 10:11 AM

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

          Reply
  46. Govind

    June 26, 2019 at 10:10 PM

    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
    • Basavaraj Tonagatti

      June 27, 2019 at 6:08 AM

      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
      • Govind

        June 27, 2019 at 10:44 AM

        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
        • Basavaraj Tonagatti

          June 27, 2019 at 7:35 PM

          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
  47. lakshmi

    May 25, 2019 at 9:44 AM

    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
    • Basavaraj Tonagatti

      May 25, 2019 at 7:55 PM

      Dear Lakshmi,
      You can’t do that.

      Reply
  48. Kaja

    May 16, 2019 at 9:17 PM

    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
    • Basavaraj Tonagatti

      May 16, 2019 at 9:24 PM

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

      Reply
  49. Priya

    April 16, 2019 at 10:27 PM

    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
    • Basavaraj Tonagatti

      April 17, 2019 at 7:50 AM

      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
  50. Satya

    March 31, 2019 at 11:16 AM

    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
    • Basavaraj Tonagatti

      April 1, 2019 at 2:12 PM

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

      Reply
  51. Sita

    March 30, 2019 at 2:05 AM

    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
    • Basavaraj Tonagatti

      March 30, 2019 at 4:54 PM

      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
      • Sita

        March 30, 2019 at 9:41 PM

        Many thanks for the prompt response
        Regds
        Sita

        Reply
  52. SSB

    March 12, 2019 at 11:23 PM

    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
    • Basavaraj Tonagatti

      March 13, 2019 at 10:21 AM

      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
      • SSB

        March 13, 2019 at 9:02 PM

        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
        • Basavaraj Tonagatti

          March 14, 2019 at 9:06 AM

          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
          • Suparna Sarkar-Banerjee

            March 14, 2019 at 8:53 PM

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

            Reply
  53. G Rakesh

    March 12, 2019 at 3:38 AM

    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
    • Basavaraj Tonagatti

      March 12, 2019 at 9:51 AM

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

      Reply
      • rakesh

        March 12, 2019 at 3:58 PM

        the joint account in the sense bank account or FD.

        Reply
        • Basavaraj Tonagatti

          March 12, 2019 at 6:19 PM

          Dear Rakesh,
          I am asking about FD.

          Reply
          • rakesh

            March 13, 2019 at 12:20 AM

            it is a joint account, sir!

            Reply
            • Basavaraj Tonagatti

              March 13, 2019 at 10:22 AM

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

              Reply
  54. A123

    December 20, 2018 at 7:49 PM

    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
    • Basavaraj Tonagatti

      December 21, 2018 at 12:58 PM

      Dear A123,
      It is based on legal hierarchy.

      Reply
  55. Venkatachari

    November 29, 2018 at 6:05 AM

    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
    • Basavaraj Tonagatti

      November 29, 2018 at 9:32 AM

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

      Reply
  56. rm

    November 28, 2018 at 10:01 AM

    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
    • Basavaraj Tonagatti

      November 28, 2018 at 10:21 AM

      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
  57. KD Singh

    August 28, 2018 at 2:32 PM

    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
    • Basavaraj Tonagatti

      August 28, 2018 at 5:18 PM

      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
      • KD Singh

        August 30, 2018 at 11:46 AM

        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
        • Basavaraj Tonagatti

          August 30, 2018 at 12:36 PM

          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
          • KD Singh

            August 30, 2018 at 1:02 PM

            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
            • KD Singh

              August 30, 2018 at 1:11 PM

              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
              • Basavaraj Tonagatti

                August 30, 2018 at 2:07 PM

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

                Reply
                • KD Singh

                  August 30, 2018 at 2:41 PM

                  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
                  • Basavaraj Tonagatti

                    August 31, 2018 at 12:12 PM

                    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
            • Basavaraj Tonagatti

              August 30, 2018 at 2:05 PM

              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
              • KD Singh

                August 30, 2018 at 4:19 PM

                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
                • Basavaraj Tonagatti

                  August 31, 2018 at 12:15 PM

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

                  Reply
  58. Govind

    August 14, 2018 at 6:01 PM

    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
    • Basavaraj Tonagatti

      August 14, 2018 at 6:48 PM

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

      Reply
  59. sanjay Kumar

    July 7, 2018 at 6:27 PM

    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
    • Basavaraj Tonagatti

      July 8, 2018 at 7:41 AM

      Dear Sanjay,
      Do you feel avoiding TDS means avoiding TAX?

      Reply
  60. Rahul

    June 26, 2018 at 1:47 PM

    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
    • Basavaraj Tonagatti

      June 26, 2018 at 5:24 PM

      Dear Rahul,
      It will be distributed as per legal heir clause.

      Reply
  61. MEHUL RAVAL

    May 29, 2018 at 10:42 AM

    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
    • Basavaraj Tonagatti

      May 29, 2018 at 12:20 PM

      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
  62. sumit nakai

    May 18, 2018 at 12:02 PM

    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
    • Basavaraj Tonagatti

      May 18, 2018 at 12:04 PM

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

      Reply
  63. Jyoti Madhok

    May 17, 2018 at 4:49 PM

    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
    • Basavaraj Tonagatti

      May 17, 2018 at 4:53 PM

      Dear Jyoti,
      Better to close the FD at first.

      Reply
  64. Yash Vaghela

    May 13, 2018 at 5:46 PM

    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
    • Basavaraj Tonagatti

      May 13, 2018 at 6:36 PM

      Dear Yash,
      Consult lawyer and move forward for a legal battle.

      Reply
  65. Dinkar

    May 12, 2018 at 7:07 PM

    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
    • Basavaraj Tonagatti

      May 12, 2018 at 8:32 PM

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

      Reply
  66. Soumyadipta Sengupta

    May 10, 2018 at 2:52 PM

    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
    • Basavaraj Tonagatti

      May 10, 2018 at 5:01 PM

      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
      • Soumyadipta Sengupta

        May 10, 2018 at 5:11 PM

        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
        • Basavaraj Tonagatti

          May 10, 2018 at 5:34 PM

          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
  67. D V RAMANA MURTHY

    May 8, 2018 at 2:11 PM

    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
    • Basavaraj Tonagatti

      May 8, 2018 at 7:04 PM

      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
      • chandrakant

        July 5, 2018 at 2:38 PM

        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
    • Rajashree

      April 16, 2019 at 5:45 PM

      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
      • Basavaraj Tonagatti

        April 16, 2019 at 10:15 PM

        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
  68. Richa

    April 28, 2018 at 10:14 AM

    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
    • Basavaraj Tonagatti

      April 28, 2018 at 10:18 AM

      Dear Richa,

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

      Reply
  69. Shagun

    April 27, 2018 at 7:12 PM

    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
    • Basavaraj Tonagatti

      April 28, 2018 at 9:36 AM

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

      Reply
  70. Mohit

    March 22, 2018 at 9:49 PM

    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
    • Basavaraj Tonagatti

      March 23, 2018 at 8:51 AM

      Mohit-Banks are right in this.

      Reply
  71. asish Bidyarthi

    March 21, 2018 at 10:37 PM

    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
    • Basavaraj Tonagatti

      March 22, 2018 at 8:26 AM

      Ashish-Legal Heir certificate is mandatory.

      Reply
      • asish Bidyarthi

        March 24, 2018 at 5:08 PM

        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
        • Basavaraj Tonagatti

          March 25, 2018 at 11:39 AM

          Ashish-I am not sure about that.

          Reply
  72. atin patel

    March 19, 2018 at 5:04 PM

    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
    • Basavaraj Tonagatti

      March 19, 2018 at 7:06 PM

      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
  73. Rajesh

    March 17, 2018 at 3:04 PM

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

    Reply
    • Basavaraj Tonagatti

      March 18, 2018 at 11:02 AM

      Rajesh-NO.

      Reply
  74. Rahul

    March 14, 2018 at 11:21 PM

    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
    • Basavaraj Tonagatti

      March 15, 2018 at 9:27 AM

      Rahul-That money is to B.

      Reply
  75. Deepak Karnawat

    March 9, 2018 at 1:13 AM

    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
    • Basavaraj Tonagatti

      March 9, 2018 at 6:52 AM

      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
  76. Madhuri rai

    March 4, 2018 at 5:08 PM

    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
    • Basavaraj Tonagatti

      March 5, 2018 at 9:47 AM

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

      Reply
      • Madhuri rai

        March 5, 2018 at 11:56 AM

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

        Reply
        • Basavaraj Tonagatti

          March 5, 2018 at 12:25 PM

          Madhuri-Quoting KYC details (including name) you can.

          Reply
  77. Mahesh

    March 3, 2018 at 3:00 PM

    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
    • Basavaraj Tonagatti

      March 3, 2018 at 5:37 PM

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

      Reply
  78. Ravi

    February 27, 2018 at 7:36 AM

    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
    • Basavaraj Tonagatti

      February 27, 2018 at 9:36 AM

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

      Reply
  79. Ls

    February 15, 2018 at 10:12 PM

    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
    • Basavaraj Tonagatti

      February 16, 2018 at 7:08 AM

      LS-Let them give everything in writing.

      Reply
  80. Rahul Dhake

    February 13, 2018 at 7:55 PM

    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
    • Basavaraj Tonagatti

      February 13, 2018 at 8:07 PM

      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
  81. Sourav Bhattacharya

    February 13, 2018 at 3:43 PM

    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
    • Basavaraj Tonagatti

      February 13, 2018 at 5:11 PM

      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
  82. Ramkumar

    February 11, 2018 at 5:41 PM

    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
    • Basavaraj Tonagatti

      February 11, 2018 at 8:58 PM

      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
  83. Gopi krishna

    February 6, 2018 at 2:08 PM

    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
    • Basavaraj Tonagatti

      February 6, 2018 at 2:11 PM

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

      Reply
      • Gopi krishna

        February 6, 2018 at 2:24 PM

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

        Reply
        • Basavaraj Tonagatti

          February 6, 2018 at 5:27 PM

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

          Reply
          • Gopi krishna

            February 6, 2018 at 7:47 PM

            why ancestor cerificate ?

            Reply
            • Basavaraj Tonagatti

              February 6, 2018 at 7:53 PM

              Gopi-It is I think legal heir certificate.

              Reply
              • Gopi krishna

                February 6, 2018 at 7:59 PM

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

                Reply
                • Gopi krishna

                  February 6, 2018 at 8:04 PM

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

                  Reply
                • Basavaraj Tonagatti

                  February 6, 2018 at 9:11 PM

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

                  Reply
  84. Kamal

    February 6, 2018 at 9:25 AM

    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
    • Basavaraj Tonagatti

      February 6, 2018 at 9:52 AM

      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
      • Kamal

        February 6, 2018 at 4:53 PM

        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
        • Basavaraj Tonagatti

          February 6, 2018 at 6:41 PM

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

          Reply
  85. Sanjay

    February 5, 2018 at 11:33 PM

    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
    • Basavaraj Tonagatti

      February 6, 2018 at 6:29 AM

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

      Reply
  86. Pavan

    January 27, 2018 at 8:57 PM

    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
    • Basavaraj Tonagatti

      January 28, 2018 at 10:58 AM

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

      Reply
      • Pavan

        January 28, 2018 at 11:30 AM

        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
        • Basavaraj Tonagatti

          January 28, 2018 at 1:47 PM

          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
          • Pavan

            January 28, 2018 at 2:07 PM

            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
            • Basavaraj Tonagatti

              January 29, 2018 at 6:40 AM

              Pavan-Great to know 🙂

              Reply
  87. Anita

    January 18, 2018 at 10:19 PM

    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
    • Basavaraj Tonagatti

      January 19, 2018 at 6:20 AM

      Anita-It is required.

      Reply
  88. Sanjeeb

    January 9, 2018 at 8:13 PM

    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
    • Basavaraj Tonagatti

      January 10, 2018 at 9:46 AM

      Sanjeeb-You will not get the duplicate death certificate?

      Reply
  89. Sourabh

    January 5, 2018 at 4:57 PM

    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
    • Basavaraj Tonagatti

      January 5, 2018 at 5:02 PM

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

      Reply
  90. Jay jadhav

    December 30, 2017 at 2:12 PM

    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
    • Basavaraj Tonagatti

      December 30, 2017 at 7:04 PM

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

      Reply
      • Jay jadhav

        December 30, 2017 at 9:49 PM

        Thanks Sir

        Reply
  91. Pradeep Jain

    December 27, 2017 at 3:34 PM

    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
    • Basavaraj Tonagatti

      December 27, 2017 at 6:09 PM

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

      Reply
      • Pradeep Jain

        December 28, 2017 at 10:15 AM

        Thanks a lot sir

        Reply
        • Pradeep Jain

          December 30, 2017 at 6:16 PM

          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
          • Basavaraj Tonagatti

            December 30, 2017 at 6:40 PM

            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
  92. Amit

    December 21, 2017 at 8:30 PM

    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
    • Basavaraj Tonagatti

      December 22, 2017 at 6:17 AM

      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
      • Amit

        December 22, 2017 at 9:30 AM

        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
        • Basavaraj Tonagatti

          December 22, 2017 at 11:34 AM

          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
  93. s k gupta

    December 20, 2017 at 10:42 PM

    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
    • Basavaraj Tonagatti

      December 21, 2017 at 6:17 AM

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

      Reply
  94. Amit Singh

    December 15, 2017 at 3:43 PM

    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
    • Basavaraj Tonagatti

      December 15, 2017 at 4:22 PM

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

      Reply
      • Amit Singh

        December 15, 2017 at 4:46 PM

        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
        • Basavaraj Tonagatti

          December 15, 2017 at 7:16 PM

          Amit-Better then first to check the status of FD with bank.

          Reply
  95. S. Mythili

    November 28, 2017 at 5:17 PM

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

    Reply
    • Basavaraj Tonagatti

      November 28, 2017 at 5:43 PM

      Mythili-YES.

      Reply
  96. VISHAYA KUMTEKAR

    November 24, 2017 at 1:19 PM

    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
    • Basavaraj Tonagatti

      November 24, 2017 at 2:18 PM

      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
  97. Kamya

    November 18, 2017 at 11:03 PM

    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
    • Basavaraj Tonagatti

      November 20, 2017 at 7:09 AM

      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
  98. Malusha

    November 18, 2017 at 5:01 PM

    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
    • Basavaraj Tonagatti

      November 20, 2017 at 7:32 AM

      Malusha-I replied to your email.

      Reply
  99. Sankalp

    November 15, 2017 at 9:20 PM

    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
    • Basavaraj Tonagatti

      November 16, 2017 at 6:09 AM

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

      Reply
      • Sankalp

        November 16, 2017 at 11:36 AM

        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
        • Basavaraj Tonagatti

          November 16, 2017 at 7:43 PM

          Sankalp-YES.

          Reply
  100. Bharat

    November 7, 2017 at 8:57 PM

    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
    • Basavaraj Tonagatti

      November 8, 2017 at 9:05 AM

      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
  101. Bharat

    November 5, 2017 at 12:59 PM

    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
    • Basavaraj Tonagatti

      November 6, 2017 at 8:25 AM

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

      Reply
  102. Kumar

    October 30, 2017 at 12:13 PM

    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
    • Basavaraj Tonagatti

      October 30, 2017 at 1:54 PM

      Kumar-It will be credited to his account.

      Reply
      • Kumar

        October 30, 2017 at 3:43 PM

        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
        • Basavaraj Tonagatti

          October 30, 2017 at 5:06 PM

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

          Reply
        • Kumar

          October 30, 2017 at 5:26 PM

          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
  103. Kaveri

    October 18, 2017 at 7:02 PM

    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
    • Basavaraj Tonagatti

      October 19, 2017 at 1:04 PM

      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
  104. Vishnu

    October 14, 2017 at 9:02 PM

    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
    • Basavaraj Tonagatti

      October 15, 2017 at 10:28 AM

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

      Reply
  105. A

    September 28, 2017 at 8:22 PM

    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
    • Basavaraj Tonagatti

      September 29, 2017 at 11:13 AM

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

      Reply
  106. Basavaraj Padanur

    September 28, 2017 at 3:26 PM

    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
    • Basavaraj Tonagatti

      September 28, 2017 at 6:40 PM

      Basavaraj-It is exempt income.

      Reply
      • Mayank

        September 29, 2017 at 5:03 PM

        How to show it in IT return.

        Reply
        • Basavaraj Tonagatti

          September 29, 2017 at 6:33 PM

          Mayank-In exempt income field.

          Reply
  107. Shailesh Sriavstava

    September 28, 2017 at 12:02 PM

    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
    • Basavaraj Tonagatti

      September 28, 2017 at 6:36 PM

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

      Reply
  108. Sriku

    September 26, 2017 at 10:54 PM

    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
    • Basavaraj Tonagatti

      September 27, 2017 at 10:12 AM

      Sriku-You can continue it till maturity.

      Reply
  109. Adarsh

    September 24, 2017 at 11:38 PM

    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
    • Basavaraj Tonagatti

      September 25, 2017 at 8:21 AM

      Adarsh-Miss.B.

      Reply
  110. Krishnamurthy

    September 24, 2017 at 6:06 AM

    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
    • Basavaraj Tonagatti

      September 24, 2017 at 9:43 AM

      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
  111. Ameen

    September 23, 2017 at 9:17 PM

    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
    • Basavaraj Tonagatti

      September 24, 2017 at 9:29 AM

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

      Reply
      • Ameen

        September 24, 2017 at 11:55 AM

        Mr Basavaraj,
        Thank you for your advice.

        Reply
  112. KD Singh

    September 21, 2017 at 1:53 PM

    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
    • Basavaraj Tonagatti

      September 21, 2017 at 4:06 PM

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

      Reply
      • KD Singh

        September 22, 2017 at 10:32 AM

        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
        • Basavaraj Tonagatti

          September 22, 2017 at 11:06 AM

          Singh-Better you first inform the bank.

          Reply
  113. Subir Singh

    September 17, 2017 at 12:16 PM

    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
    • Basavaraj Tonagatti

      September 17, 2017 at 12:38 PM

      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
  114. Girish

    September 1, 2017 at 5:21 PM

    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
    • Basavaraj Tonagatti

      September 1, 2017 at 5:23 PM

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

      Reply
  115. AMIT KUMAR

    August 26, 2017 at 10:38 PM

    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
    • Basavaraj Tonagatti

      August 26, 2017 at 11:04 PM

      Amit-1) YES.
      2) It is in your name.

      Reply
      • Amit Kumar

        August 30, 2017 at 8:50 PM

        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
        • Basavaraj Tonagatti

          August 31, 2017 at 5:17 AM

          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
  116. AMIT KUMAR

    August 26, 2017 at 10:21 PM

    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
  117. Gopi krishna

    August 25, 2017 at 4:54 PM

    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
    • Basavaraj Tonagatti

      August 26, 2017 at 2:05 PM

      Gopi-It is family issue. How can I guide you?

      Reply
  118. Mayank

    August 22, 2017 at 7:09 PM

    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
    • Basavaraj Tonagatti

      August 22, 2017 at 7:15 PM

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

      Reply
  119. prahlad

    August 18, 2017 at 10:10 PM

    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
    • Basavaraj Tonagatti

      August 18, 2017 at 10:23 PM

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

      Reply
      • Prahlad

        August 19, 2017 at 12:40 PM

        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
        • Basavaraj Tonagatti

          August 19, 2017 at 12:53 PM

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

          Reply
  120. Ritam Banerjee

    August 18, 2017 at 6:21 PM

    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
    • Basavaraj Tonagatti

      August 18, 2017 at 6:26 PM

      Ritam-You have the rights to continue till maturity.

      Reply
      • Ritam Banerjee

        August 18, 2017 at 6:32 PM

        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
        • Basavaraj Tonagatti

          August 18, 2017 at 6:37 PM

          Ritam-Senior Citizen interest rate.

          Reply
  121. Govindraj

    August 6, 2017 at 11:59 PM

    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
    • Basavaraj Tonagatti

      August 7, 2017 at 12:07 PM

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

      Reply
  122. Vinod

    July 31, 2017 at 1:51 PM

    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
    • Basavaraj Tonagatti

      July 31, 2017 at 2:00 PM

      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
  123. Rishi Singh

    July 26, 2017 at 5:31 PM

    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
    • Basavaraj Tonagatti

      July 26, 2017 at 8:01 PM

      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
      • Rishi Singh

        July 27, 2017 at 1:53 PM

        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
        • Basavaraj Tonagatti

          July 27, 2017 at 2:40 PM

          Rishi-As per me, the tax liability will now be with your wife.

          Reply
          • Rishi Singh

            July 27, 2017 at 3:55 PM

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

            Thanks

            Reply
            • Basavaraj Tonagatti

              July 27, 2017 at 5:39 PM

              Rishi-ONLY on interest amount but not on principal.

              Reply
              • Rishi Singh

                July 28, 2017 at 2:43 PM

                Thanks much Basvaraj!!

                Reply
              • Bhavna Patel

                August 15, 2017 at 10:17 AM

                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
                • Basavaraj Tonagatti

                  August 15, 2017 at 11:01 AM

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

                  Reply
                  • Bhavna Patel

                    August 15, 2017 at 8:14 PM

                    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
                    • Basavaraj Tonagatti

                      August 16, 2017 at 6:31 AM

                      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.

                    • Bhavna Patel

                      August 16, 2017 at 7:37 AM

                      Thank you, Sir.

  124. Sunit Malhotra

    July 15, 2017 at 10:45 PM

    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
    • Sunit Malhotra

      July 15, 2017 at 10:52 PM

      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
      • Basavaraj Tonagatti

        July 16, 2017 at 8:56 AM

        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
        • Shiv

          July 25, 2020 at 10:57 AM

          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
    • Basavaraj Tonagatti

      July 16, 2017 at 8:55 AM

      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
      • Sunit Malhotra

        July 16, 2017 at 9:29 AM

        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
        • Basavaraj Tonagatti

          July 16, 2017 at 9:36 AM

          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
          • Sunit Malhotra

            July 16, 2017 at 9:40 AM

            Thanks so much Basvaraj.

            Reply
  125. sanjay

    July 3, 2017 at 11:35 PM

    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
    • Basavaraj Tonagatti

      July 4, 2017 at 7:22 AM

      Sanjay-Yes, they are correct.

      Reply
  126. Anju

    June 20, 2017 at 3:52 PM

    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
    • Basavaraj Tonagatti

      June 21, 2017 at 1:34 PM

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

      Reply
  127. S.kumar

    May 28, 2017 at 7:28 PM

    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
    • Basavaraj Tonagatti

      May 28, 2017 at 8:57 PM

      Kumar-Yes, YOU CAN.

      Reply
      • S.kumar

        May 28, 2017 at 9:05 PM

        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
        • Basavaraj Tonagatti

          May 29, 2017 at 10:11 AM

          Kumar-Refer this process to complain against SBI.

          Reply
  128. S R

    May 24, 2017 at 1:50 PM

    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
    • S R

      May 24, 2017 at 1:59 PM

      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
      • sathish

        June 6, 2017 at 9:55 PM

        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
        • Basavaraj Tonagatti

          June 7, 2017 at 12:39 PM

          Sathish-Let them give everything in writing.

          Reply
    • Basavaraj Tonagatti

      May 25, 2017 at 10:39 AM

      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
  129. Subramanian.V

    May 18, 2017 at 11:18 PM

    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
    • Basavaraj Tonagatti

      May 19, 2017 at 9:42 AM

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

      Reply
      • Subramanian.V

        May 19, 2017 at 5:59 PM

        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 vasusubram@yahoo.com also.

        Reply
        • Basavaraj Tonagatti

          May 19, 2017 at 7:09 PM

          Subramanian-As per me, there is no penalty for death claims.

          Reply
  130. HDC

    April 30, 2017 at 7:44 PM

    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
    • Basavaraj Tonagatti

      May 1, 2017 at 1:08 PM

      HDC-I replied to your FB message.

      Reply
  131. Deepak Kumar

    April 20, 2017 at 5:54 PM

    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
    • Basavaraj Tonagatti

      April 20, 2017 at 6:37 PM

      Deepak-The above said rules will apply.

      Reply
  132. K.Sreedhar

    April 1, 2017 at 5:01 PM

    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
    • Basavaraj Tonagatti

      April 1, 2017 at 6:31 PM

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

      Reply
  133. Mohan Deshmukh

    March 14, 2017 at 11:28 PM

    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
    • Basavaraj Tonagatti

      March 15, 2017 at 12:33 PM

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

      Reply
      • Mohan Deshmukh

        March 22, 2017 at 9:01 PM

        Thanks a lot

        Reply
      • Mohan Deshmukh

        July 29, 2017 at 9:57 PM

        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
        • Basavaraj Tonagatti

          July 30, 2017 at 9:04 PM

          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
  134. Ramesh Gawde

    March 11, 2017 at 3:43 PM

    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
    • Basavaraj Tonagatti

      March 11, 2017 at 6:42 PM

      Ramesh-Closing is illegal.

      Reply
      • lalit

        March 12, 2017 at 7:01 PM

        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
        • Basavaraj Tonagatti

          March 12, 2017 at 7:15 PM

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

          Reply
  135. anita

    March 8, 2017 at 5:22 PM

    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
    • Basavaraj Tonagatti

      March 8, 2017 at 6:39 PM

      Anita-What KYC documents bank asked while booking FD?

      Reply
  136. Rajal Shah

    March 6, 2017 at 6:25 PM

    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
    • Basavaraj Tonagatti

      March 6, 2017 at 9:27 PM

      Rajal-You will be the natural owner of FD.

      Reply
  137. RAJESH

    March 4, 2017 at 1:49 PM

    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
    • Basavaraj Tonagatti

      March 4, 2017 at 1:50 PM

      Rajesh-Only on interest earned.

      Reply
  138. RAJESH

    March 4, 2017 at 10:50 AM

    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
    • Basavaraj Tonagatti

      March 4, 2017 at 1:31 PM

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

      Reply
  139. Anu G

    March 3, 2017 at 9:10 AM

    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
    • Basavaraj Tonagatti

      March 3, 2017 at 9:59 AM

      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
      • Anu G

        March 3, 2017 at 2:54 PM

        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
        • Basavaraj Tonagatti

          March 3, 2017 at 5:52 PM

          Anu-YES. You can continue the FD till maturity.

          Reply
  140. Tej

    March 2, 2017 at 10:47 PM

    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
    • Basavaraj Tonagatti

      March 3, 2017 at 7:10 AM

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

      Reply
      • Tej

        March 3, 2017 at 9:14 AM

        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
        • Basavaraj Tonagatti

          March 3, 2017 at 10:01 AM

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

          Reply
          • Tej

            March 3, 2017 at 12:51 PM

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

            Reply
            • Basavaraj Tonagatti

              March 3, 2017 at 6:15 PM

              Tej-But in case of death, there is no CUT.

              Reply
  141. PARAMASIVAN T

    March 1, 2017 at 7:21 PM

    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
    • Basavaraj Tonagatti

      March 1, 2017 at 8:15 PM

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

      Reply
  142. PARAMASIVAN T

    March 1, 2017 at 5:27 PM

    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
    • Basavaraj Tonagatti

      March 1, 2017 at 6:35 PM

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

      Reply
  143. S.p.subbulakshmi,Durgapur,DSP hospital

    March 1, 2017 at 12:44 AM

    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
    • Basavaraj Tonagatti

      March 1, 2017 at 12:55 PM

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

      Reply
  144. sandeep

    February 11, 2017 at 6:19 PM

    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
    • Basavaraj Tonagatti

      February 11, 2017 at 6:46 PM

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

      Reply
  145. Sameer

    February 3, 2017 at 3:19 PM

    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
    • Basavaraj Tonagatti

      February 3, 2017 at 5:26 PM

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

      Reply
      • Pradeep Joshi

        March 17, 2017 at 3:23 PM

        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
        • Basavaraj Tonagatti

          March 17, 2017 at 7:38 PM

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

          Reply
  146. babu

    January 9, 2017 at 10:17 PM

    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
    • Basavaraj Tonagatti

      January 10, 2017 at 6:41 AM

      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
      • babu

        January 10, 2017 at 10:08 AM

        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
        • Basavaraj Tonagatti

          January 10, 2017 at 1:39 PM

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

          Reply
  147. Amar

    January 9, 2017 at 5:35 PM

    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
    • Basavaraj Tonagatti

      January 9, 2017 at 7:00 PM

      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
  148. lalit

    January 6, 2017 at 3:09 PM

    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
    • Basavaraj Tonagatti

      January 6, 2017 at 3:15 PM

      Lalit-Show the rules of RBI.

      Reply
      • lalit

        January 6, 2017 at 4:17 PM

        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
        • lalit

          January 7, 2017 at 12:16 PM

          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
          • lalit

            January 7, 2017 at 12:51 PM

            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
            • Basavaraj Tonagatti

              January 7, 2017 at 9:04 PM

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

              Reply
              • lalit

                March 1, 2017 at 9:10 AM

                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
                • Basavaraj Tonagatti

                  March 1, 2017 at 12:44 PM

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

                  Reply
          • Basavaraj Tonagatti

            January 7, 2017 at 9:03 PM

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

            Reply
      • Pradeep Joshi

        March 17, 2017 at 3:33 PM

        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
        • Basavaraj Tonagatti

          March 17, 2017 at 7:37 PM

          Pradeep-Search in RBI portal.

          Reply
  149. RAJESH

    January 5, 2017 at 5:51 PM

    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
    • Basavaraj Tonagatti

      January 5, 2017 at 7:13 PM

      Rajesh-It will continue at 9.25%.

      Reply
  150. RAJESH

    January 4, 2017 at 5:49 PM

    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
    • Basavaraj Tonagatti

      January 4, 2017 at 6:29 PM

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

      Reply
  151. Raj Malhotra

    December 16, 2016 at 8:10 PM

    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
    • Basavaraj Tonagatti

      December 16, 2016 at 8:16 PM

      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
      • Raj Malhotra

        December 19, 2016 at 5:51 PM

        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
        • Basavaraj Tonagatti

          December 19, 2016 at 7:58 PM

          Raj-Which ways he explained?

          Reply
  152. Gopal

    December 10, 2016 at 5:26 PM

    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
    ghkalani@gmail.com

    Reply
    • Basavaraj Tonagatti

      December 12, 2016 at 10:22 AM

      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
      • divyesh

        December 13, 2016 at 2:05 PM

        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
        • Basavaraj Tonagatti

          December 13, 2016 at 2:32 PM

          Divyesh-It is legal heirs of FD holder.

          Reply
  153. archu

    December 2, 2016 at 2:49 PM

    Thank you so much….!

    Reply
  154. archu

    December 2, 2016 at 11:16 AM

    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
    • Basavaraj Tonagatti

      December 2, 2016 at 11:48 AM

      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
  155. PSK

    November 23, 2016 at 5:04 PM

    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
    • Basavaraj Tonagatti

      November 23, 2016 at 7:52 PM

      PSK-Not required.

      Reply
  156. Venkataraman

    November 1, 2016 at 4:11 PM

    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
    • Basavaraj Tonagatti

      November 1, 2016 at 8:22 PM

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

      Reply
  157. Aditya

    October 27, 2016 at 10:03 PM

    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
    • Basavaraj Tonagatti

      October 28, 2016 at 7:49 PM

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

      Reply
  158. anil kumar

    October 17, 2016 at 8:45 PM

    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
    • Basavaraj Tonagatti

      October 18, 2016 at 7:30 AM

      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
      • anil kumar

        October 18, 2016 at 6:45 PM

        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
        • Basavaraj Tonagatti

          October 19, 2016 at 6:12 AM

          Anil-You can continue.

          Reply
      • anil kumar

        October 18, 2016 at 6:49 PM

        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
        • Basavaraj Tonagatti

          October 19, 2016 at 6:13 AM

          Anil-You can continue the FD in your mother name.

          Reply
    • N.R.Ranganathan

      October 26, 2016 at 11:34 AM

      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. nrpatanjali@yahoo.com

      Reply
      • Basavaraj Tonagatti

        October 28, 2016 at 8:54 PM

        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
        • N.R.Ranganathan

          November 6, 2016 at 8:52 PM

          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
          • Basavaraj Tonagatti

            November 6, 2016 at 9:33 PM

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

            Reply
            • N.R.Ranganathan

              November 7, 2016 at 7:24 AM

              Thank you sir,
              Regards,
              N.R.Ranganathan

              Reply
              • N.R.Ranganathan

                November 7, 2016 at 11:19 AM

                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
                • Basavaraj Tonagatti

                  November 7, 2016 at 11:37 AM

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

                  Reply
                  • N.R.Ranganathan

                    March 8, 2017 at 8:28 AM

                    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
                    • Basavaraj Tonagatti

                      March 8, 2017 at 1:37 PM

                      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.

  159. Amit

    October 13, 2016 at 5:49 PM

    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
    • Basavaraj Tonagatti

      October 13, 2016 at 6:34 PM

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

      Reply
      • Amit

        October 13, 2016 at 9:12 PM

        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
        • Basavaraj Tonagatti

          October 13, 2016 at 9:46 PM

          Amit-Check with lawyer.

          Reply
  160. Naveen

    October 12, 2016 at 2:22 PM

    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
    • Basavaraj Tonagatti

      October 12, 2016 at 6:09 PM

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

      Reply
      • Naveen

        October 13, 2016 at 11:25 AM

        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
        • Basavaraj Tonagatti

          October 13, 2016 at 11:44 AM

          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
  161. tejas

    October 9, 2016 at 10:47 PM

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

    Reply
    • Basavaraj Tonagatti

      October 10, 2016 at 6:58 AM

      Tejas-Which account?

      Reply
  162. Kanchan

    October 9, 2016 at 4:54 PM

    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
    • Basavaraj Tonagatti

      October 9, 2016 at 5:06 PM

      Kanchan-She has to be present physically.

      Reply
      • Kanchan

        October 9, 2016 at 10:21 PM

        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
        • Basavaraj Tonagatti

          October 10, 2016 at 6:57 AM

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

          Reply
  163. sinu

    September 30, 2016 at 10:05 AM

    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
    • Basavaraj Tonagatti

      September 30, 2016 at 7:53 PM

      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
  164. S.Venkatarman

    September 27, 2016 at 10:57 AM

    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
    • Basavaraj Tonagatti

      September 27, 2016 at 11:29 AM

      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
  165. Vinod Kumar

    September 21, 2016 at 12:05 PM

    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
  166. Soumya Ranjan Rout

    August 31, 2016 at 1:26 AM

    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
    • Basavaraj Tonagatti

      August 31, 2016 at 7:10 AM

      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
    • Nani

      September 19, 2016 at 9:06 PM

      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
      • Basavaraj Tonagatti

        September 19, 2016 at 9:18 PM

        Nani-What bank officials told?

        Reply
  167. Gaurav Goel

    August 25, 2016 at 7:52 PM

    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
    • Basavaraj Tonagatti

      August 25, 2016 at 9:13 PM

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

      Reply
  168. S PADMINI

    August 20, 2016 at 5:02 PM

    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
    • Basavaraj Tonagatti

      August 20, 2016 at 9:17 PM

      Padmini-YES.

      Reply
  169. ABHIJIT SARKAR

    August 13, 2016 at 12:29 PM

    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
    • Basavaraj Tonagatti

      August 13, 2016 at 11:09 PM

      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
  170. NEHA GAJARIA

    August 11, 2016 at 9:31 AM

    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
    • Basavaraj Tonagatti

      August 11, 2016 at 11:49 AM

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

      Reply
  171. Gaurav

    August 10, 2016 at 2:03 PM

    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
    • Basavaraj Tonagatti

      August 10, 2016 at 2:46 PM

      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
      • Vivek Dev

        September 2, 2016 at 7:31 AM

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

        Reply
        • Basavaraj Tonagatti

          September 2, 2016 at 11:28 AM

          Vivek-Nominee can’t continue.

          Reply
  172. shriram

    August 10, 2016 at 12:05 PM

    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
    • Basavaraj Tonagatti

      August 10, 2016 at 2:47 PM

      Shriram-Postal agent is right.

      Reply
      • shriram

        August 11, 2016 at 11:32 AM

        thanks sir

        Reply
  173. Raj

    August 6, 2016 at 9:51 PM

    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
    • Basavaraj Tonagatti

      August 6, 2016 at 10:00 PM

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

      Reply
  174. Baljeet singh

    August 6, 2016 at 12:50 PM

    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
    • Basavaraj Tonagatti

      August 6, 2016 at 2:48 PM

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

      Reply
  175. V v joshi

    August 6, 2016 at 1:05 AM

    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
    • Basavaraj Tonagatti

      August 6, 2016 at 10:16 AM

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

      Reply
  176. Abhishek Sharma

    August 5, 2016 at 10:32 PM

    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
    • Basavaraj Tonagatti

      August 6, 2016 at 10:12 AM

      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
  177. Shaanth

    July 31, 2016 at 1:56 PM

    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
    • Basavaraj Tonagatti

      July 31, 2016 at 6:05 PM

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

      Reply
      • Shaanth

        July 31, 2016 at 6:38 PM

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

        Reply
        • Basavaraj Tonagatti

          July 31, 2016 at 8:46 PM

          Shaanth-Sure.

          Reply
          • Prashanth Sreedharan

            August 21, 2016 at 10:51 AM

            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
            • Basavaraj Tonagatti

              August 21, 2016 at 12:45 PM

              Prashanth-Thanks for sharing your updates.

              Reply
  178. Ranju

    July 19, 2016 at 2:58 PM

    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
    • Basavaraj Tonagatti

      July 19, 2016 at 5:29 PM

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

      Reply
  179. Yuvraj

    July 13, 2016 at 12:59 PM

    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
    • Basavaraj Tonagatti

      July 13, 2016 at 5:20 PM

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

      Reply
  180. LALIT

    July 13, 2016 at 12:47 PM

    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
    • Basavaraj Tonagatti

      July 13, 2016 at 5:19 PM

      Lalit-I replied to your FB Message.

      Reply
    • Nandita Biswas

      November 22, 2020 at 9:47 PM

      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
      • Basavaraj Tonagatti

        November 23, 2020 at 8:26 AM

        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
  181. Salil Pant

    July 6, 2016 at 12:08 PM

    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
    • Basavaraj Tonagatti

      July 6, 2016 at 12:15 PM

      Salil-There is no gift tax if it is within family.

      Reply
  182. SUNITA AGRAWAL

    July 4, 2016 at 11:39 AM

    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
    • Basavaraj Tonagatti

      July 4, 2016 at 12:49 PM

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

      Reply
      • SUNITA AGRAWAL

        July 5, 2016 at 10:41 AM

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

        Regards

        Reply
        • Basavaraj Tonagatti

          July 5, 2016 at 10:59 AM

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

          Reply
          • SUNITA AGRAWAL

            July 5, 2016 at 11:11 AM

            Thanks & Regards

            Reply
  183. KHAIR SUKH

    June 30, 2016 at 9:28 PM

    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
    • Basavaraj Tonagatti

      June 30, 2016 at 9:44 PM

      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
      • KHAIR SUKH

        July 2, 2016 at 3:37 AM

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

        khairsukh

        Reply
  184. T V S PRASAD

    June 24, 2016 at 7:11 AM

    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
    • Basavaraj Tonagatti

      June 24, 2016 at 10:23 AM

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

      Reply
  185. Avijit Dutta

    June 15, 2016 at 5:33 PM

    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
    • Basavaraj Tonagatti

      June 15, 2016 at 5:53 PM

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

      Reply
      • Avijit Dutta

        June 16, 2016 at 3:29 PM

        My mother is the 1st holder.

        Reply
        • Avijit Dutta

          June 16, 2016 at 3:41 PM

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

          Reply
          • Basavaraj Tonagatti

            June 16, 2016 at 5:20 PM

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

            Reply
        • Basavaraj Tonagatti

          June 16, 2016 at 5:20 PM

          Avijit-Then why your brother’s signature required?

          Reply
          • Avijit Dutta

            June 16, 2016 at 6:20 PM

            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
            • Basavaraj Tonagatti

              June 16, 2016 at 6:30 PM

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

              Reply
              • Avijit Dutta

                June 16, 2016 at 6:40 PM

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

                Reply
                • Basavaraj Tonagatti

                  June 16, 2016 at 6:58 PM

                  Avijit-Yes, because it is joint account holding.

                  Reply
  186. Arshad Sutar

    June 6, 2016 at 10:29 PM

    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
    • Basavaraj Tonagatti

      June 7, 2016 at 9:50 AM

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

      Reply
  187. Ms. S. Sarkar ( Supriya Sarkar )

    June 6, 2016 at 4:01 PM

    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
    • Basavaraj Tonagatti

      June 6, 2016 at 6:13 PM

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

      Reply
  188. Ms. S. Sarkar

    June 4, 2016 at 8:23 PM

    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
    • Basavaraj Tonagatti

      June 4, 2016 at 8:36 PM

      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
  189. amit singh

    May 23, 2016 at 12:49 PM

    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
    • Basavaraj Tonagatti

      May 23, 2016 at 12:53 PM

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

      Reply
      • amit singh

        May 23, 2016 at 1:34 PM

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

        Reply
        • Basavaraj Tonagatti

          May 23, 2016 at 5:07 PM

          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
          • amit singh

            May 23, 2016 at 5:27 PM

            Thank you very much for your helpful information.

            Reply
  190. golesar sanjay

    May 10, 2016 at 4:02 PM

    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
    • Basavaraj Tonagatti

      May 10, 2016 at 5:06 PM

      Golesar-NO.

      Reply
  191. Sagar

    May 10, 2016 at 3:36 PM

    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
    • Basavaraj Tonagatti

      May 10, 2016 at 5:09 PM

      Sagar-1) Yes, you have to file the IT return. Refer my post “Who is responsible to file and pay Income Tax after death?“.
      2) NO, they can’t as the survivor have rights. But as it is your father’s money, they can claim the amount from you.

      Reply
      • Sagar

        May 10, 2016 at 5:33 PM

        Thank you Sir.

        Reply
  192. Kasturi

    April 26, 2016 at 2:54 PM

    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
    • Basavaraj Tonagatti

      April 26, 2016 at 3:05 PM

      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
  193. kalyan

    April 20, 2016 at 11:50 PM

    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
    • Basavaraj Tonagatti

      April 21, 2016 at 1:35 PM

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

      Reply
  194. Payel

    April 13, 2016 at 7:10 PM

    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
    • Basavaraj Tonagatti

      April 15, 2016 at 11:23 AM

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

      Reply
  195. Avijit Saha

    April 8, 2016 at 6:22 PM

    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
    • Basavaraj Tonagatti

      April 9, 2016 at 11:18 AM

      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
  196. Pratik

    April 8, 2016 at 11:22 AM

    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
    • Basavaraj Tonagatti

      April 8, 2016 at 11:29 AM

      Pratik-Your doubt is replied to your FB message.

      Reply
  197. sandeep

    April 3, 2016 at 12:19 PM

    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
    • Basavaraj Tonagatti

      April 3, 2016 at 6:06 PM

      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
      • sandeep

        April 3, 2016 at 9:30 PM

        Hi,

        Thanks for reply.

        Is there any authority i can talk and take help.

        Thanks,
        Sandeep

        Reply
        • Basavaraj Tonagatti

          April 4, 2016 at 6:12 AM

          Sandeep-Banking Ombudsman.

          Reply
  198. ARUN

    March 30, 2016 at 1:40 PM

    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
  199. Soumya Jyoti Das

    March 29, 2016 at 2:00 AM

    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
    • Basavaraj Tonagatti

      March 29, 2016 at 9:59 AM

      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
      • Soumya Jyoti Das

        March 29, 2016 at 1:23 PM

        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
        • Basavaraj Tonagatti

          March 29, 2016 at 6:19 PM

          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
          • Soumya Jyoti Das

            March 31, 2016 at 3:05 AM

            Thank You for the help and reassurance.

            Reply
  200. Rohit Gupta

    March 22, 2016 at 2:37 AM

    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
    • Basavaraj Tonagatti

      March 22, 2016 at 10:50 AM

      Rohit-I think your doubt cleared through our FB Chat.

      Reply
      • Rohit Gupta

        March 22, 2016 at 10:57 AM

        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
        • Basavaraj Tonagatti

          March 22, 2016 at 11:19 AM

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

          Reply
          • Rohit Gupta

            March 22, 2016 at 11:27 AM

            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
            • Basavaraj Tonagatti

              March 22, 2016 at 12:16 PM

              YES.

              Reply
              • rohit gupta

                March 22, 2016 at 12:19 PM

                is this same for Post Office Monthly Income Scheme??

                Reply
                • rohit gupta

                  March 22, 2016 at 12:20 PM

                  And can i get TDS return??

                  Reply
                  • Basavaraj Tonagatti

                    March 22, 2016 at 1:00 PM

                    Rohit-Yes if the TDS is more than your tax liability.

                    Reply
                • Basavaraj Tonagatti

                  March 22, 2016 at 1:00 PM

                  Rohit-Tax rules applies to all products.

                  Reply
                  • rohit gupta

                    March 23, 2016 at 10:11 AM

                    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
                    • Basavaraj Tonagatti

                      March 23, 2016 at 10:14 AM

                      Rohit-Do so at your own risk.

  201. Mukesh

    March 21, 2016 at 9:53 PM

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

    Reply
    • Basavaraj Tonagatti

      March 22, 2016 at 10:51 AM

      Mukesh-Yes.

      Reply
      • Mukesh

        March 22, 2016 at 8:58 PM

        Thank you, i mean claim fixed deposits they have?

        Reply
        • Basavaraj Tonagatti

          March 22, 2016 at 9:35 PM

          Mukesh-YES.

          Reply
          • Navalgund

            June 21, 2016 at 6:36 PM

            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
            • Basavaraj Tonagatti

              June 21, 2016 at 9:26 PM

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

              Reply
  202. NARENDRA VICHARE

    March 16, 2016 at 1:49 PM

    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
    • Basavaraj Tonagatti

      March 16, 2016 at 6:21 PM

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

      Reply
  203. arvind

    March 10, 2016 at 10:36 PM

    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
    • Basavaraj Tonagatti

      March 11, 2016 at 10:27 AM

      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
  204. Neeraj Agrawal

    February 17, 2016 at 8:18 PM

    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
    • Basavaraj Tonagatti

      February 17, 2016 at 8:20 PM

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

      Reply
  205. Santosh

    February 5, 2016 at 8:55 AM

    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
    • Basavaraj Tonagatti

      February 5, 2016 at 9:01 AM

      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
  206. BBS

    January 24, 2016 at 10:12 PM

    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
    • Basavaraj Tonagatti

      January 25, 2016 at 11:01 AM

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

      Reply
  207. Alex Mathew

    December 29, 2015 at 5:52 PM

    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
    • Basavaraj Tonagatti

      December 30, 2015 at 7:30 PM

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

      Reply
  208. mahendra

    December 16, 2015 at 6:32 PM

    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
    • Basavaraj Tonagatti

      December 17, 2015 at 2:49 PM

      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
  209. Raj

    December 1, 2015 at 1:27 PM

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

    Reply
    • Basavaraj Tonagatti

      December 1, 2015 at 1:45 PM

      Raj-YES.

      Reply
      • Eshan singhai

        April 13, 2020 at 5:39 PM

        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
        • Basavaraj Tonagatti

          April 15, 2020 at 8:49 AM

          Dear Eshan,
          Approach a lawyer.

          Reply
  210. Guest

    December 1, 2015 at 12:46 PM

    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
    • Basavaraj Tonagatti

      December 1, 2015 at 1:15 PM

      Guest-Thanks for your more inputs.

      Reply
      • Niraj

        December 23, 2015 at 10:39 PM

        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
        • Basavaraj Tonagatti

          December 24, 2015 at 6:00 AM

          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

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sidebar

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

Categories

  • Banking
  • Consumer Rights
  • EPF and PPF
  • Insurance Planning
  • Investment Planning
  • Mutual Fund
  • Real Estate
  • Real Life Stories
  • Retirement
  • Tax Planning
  • Uncategorized

Subscribe to our YouTube Channel

Recent Posts

  • Latest NPS exit and withdrawal Rules 2021
  • Interesting Tax Dispute – Whether Sachin Tendulkar Actor or Cricketer?
  • List of Index Funds in India 2021
  • 7.15% Power Finance Corporation NCD Bonds 2021 – Review
  • ENEMY No.1 of your investment
  • 39 Year Multimillionaire’s Tesla stock value is Rs.83 CRORE – What we can learn?

Are you looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor representative of any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.

GET STARTED

    Follow along on social media

Get in touch with us here

Address: Basavaraj Tonagatti,
1446, Aastha, Sir M Vishweshwarayya Layout, 5th Block, Bangalore-560056.

Phone: (+91) 9019580450

Email: tonhokrani@gmail.com

Subscribe to our newsletter

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

© Copyright 2020

Return to top