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

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

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

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

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

 

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

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

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

Bank Fixed Deposit Nomination

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

Bank Fixed Deposit (FD)

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

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

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

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

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

Whether to continue or withdraw the deposit?

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

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

How you receive the maturity amount?

Here RBI had provided two options and are as below.

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

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

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

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759 Responses

  1. My mother is in India and my sister is a British Citizen .Can my mother invest her money in FD in her Indian Bank with her as joint holder,so that when she dies , the FD could be closed and the amount converted to Sterling pound and taken by my sister. Is there any limit for heir to take the amount in foreign exchange?
    Thanks in advance

    1. Dear Mani,
      For such a joint setup, both parties should be present. Yes, there are certain limits for foreign remittances.

  2. I am the heirs of my late aunty,and i am from philippines,my aunty died at London uk.but the money bring here together with the staff of the bank..it is posible to bring here?what any reason to send my bank account instead.?

    1. Dear Rodelyn,
      Sorry…I am not an expert to guide about the laws of other countries than India.

  3. My father dies he had made FD through HUF account but nominee not mentioned
    So i as willing to know that HUF account FD required nominee or it transfer to next Katra
    Kindly suggest

  4. My father, a senior citizen, held Fixed Deposits with me as second holder(not a senior citizen) with “Either or Survivor” option and as a senior citizen was granted higher rate of interest for the fixed deposits
    As he has recently passed away ,
    I understand once the first holder name is deleted the taxes levied on the interest will now have to be paid by me

    1) can I continue to hold the Fixed Deposits till the maturity date

    2) will the fixed deposits continue at the contracted rate of interest (senior citizen rate) till maturity date as now I am the First holder and my PAN Card details will be used for all tax deductions (TDS)

    3) can I close all the Fixed deposits at the contracted rate of interest as stated on the FD without facing penalties as my father has being paying taxes on all fixed deposit interest incomes on a yearly basis.hence reduction in interest due to penalty will result that extra amount of taxes has already been paid by my father as most of the Fixed deposits are held for long time period

  5. Hi,
    My father expired and now I want to continue fd in his solo name and myself as nominee. If I declare to bank of his demise now and intimate bank to continue fd then in whose income , intrest income will be considered
    1) my father income
    2) my income(nominee)
    3) my mother income(legal representative for ITR filing)
    my mother is legal representative for ITR filing of my father for FY 2021-22.

    1. Dear Rashmi,
      For the financial year in which your father died, it is his income. After that from the taxation part, it is the legal heir’s income.

  6. Dear Sir,
    You have mentioned in the article above “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.”
    In the case of Joint Bank FD with quarterly interest payment to SB Account, if after the death of the First Holder, the second Holder wants to withdraw the FD Amount prematurely, does it attract penalty charge of 1% of the investment capital?”

  7. Hi Sir,

    I have made FDs on my father-in-law’s name as he gets more interest & tax benefits. Now, he passed away. Nominee is my wife for all FDs. She is the only daughter. I have few doubts.

    1) Can these FDs be transferred to my wife directly without closing them without preclosure.

    2) Can these FDs be transferred to my mother-in-law directly without closing them as she gets more interest being senior citizen without preclosure.

    3) What will be the complications if I wait till maturity & close myself if bank doesn’t transfer FDs and preclose with low interest?

    4) Does bank transfers money to nominee or legal heir.

    We have no issues with mother-in-law.

    1. Dear Raghav,
      1) Without closing not possible.
      2) Same as first answer.
      3) Check with bank as each bank has it’s own rule.
      4) Nominee.

  8. Hello Sir, there are one FD of my grandmother and nominee is my father. Actually both are expired in 2020 and FD matured in 2022/1. So how can I claim that amount? FD is in Indian bank . Can you please guide me?

  9. Hi BasuNivesh,

    Recently my Husband passed away and he has FD in the various bank but we are not unable to find those bonds and i am the nominee.
    What is the process to withdraw FD.

    1. Dear Anusha,
      Visit the branch and let them check the FDs your late husband holding and based on that with given letter that you are unable to find the FD certificates, I think banks will process it.

  10. My uncle had 3 fd with dist co-op society bank passed away, he nominated his wife… out of 5 daughters one of the daughters holds the FDReceipt….conflict arouses and the co-op society not settling the claim of the nominee without FDreceipt and the 3daughters clearly intimated co-op society not to settle their mom…

    is their way out as a mom gave birth 5 daughters and raised, got them married too they are well settled too ….but afraid she will settle solely to the elder daughter who is a widower…….At age of 78, she suffers without money and lost her husband too…..a death of her husband changed her life

    1. Dear Hemanth,
      Emotional attachments are sometimes of no use when it comes to rules and regulations. But nominee in this case is also a legal heir, her daughters can’t stop her from claiming the ownership of FD.

  11. My grandmother and aunt were holder in FD. My grandmother passed away. Can my aunt withdraw fd by her signature only as she is joint holder and does she needs to provide any documents?

  12. My father died recently and he has some fixed deposits without nominee mentioned. I have a brother who is major. How does the bank proceeds if we produce legal heir of ours. Does the amount equally disbursed including my mother and my father’s mother (grandmother). Are will bank ask signature for our consent.

  13. Hi,

    My mother has a few FDs. I am the sole legal heirs.
    She has nominated her brother for these FDs.

    As per process I understand that proceeds from this FD will be transferred to the nominee (her brother in this case)
    As a legal heir how do I ensure that the nominee transfers the proceeds to me?
    What should I do if he does not do the same? Also, what if he receives the money and uses it off?
    Thank you,
    MK

  14. In case of death, who will get operating rights, joint account holder or nominee?
    1. In case of FD
    2. In case of Demat account
    3. In case of Mutual FUnd
    4. In case of Immovable property
    5. In case of PMS

    Does it make any difference if the account, wherever possible, is either or survivor?

  15. Dear Sir/Madam,
    My mother (primary account holder and Senior Citizen) and myself were Joint Holders of a FD (from 2013 to 2023) where the interest rate was for Senior Citizen.
    On my mother’s death, the concerned bank manager advised me to close the FD as I am not entitled to enjoy the benefits of the senior citizen interest rate.

    My query is whether it was mandatory to close the FD or it could have been continued with Senior Citizen interest benefits.

    1. Dear Arunendra,
      If the FD is booked as a senior citizen, then obviously many banks not allowing it.

  16. Sir my grandfather has made me the nominee for his bank account but his FD has no nominee. He has also made the will in my name and I am the one who is the successor of his property acocrdung to his will. Now my grandfather is no more. So what is the procedure of claiming the FD. As bank is saying there is no nominee for the FD .

  17. Sir, Thank you so much for your Reply.

    I would like to say Bank has not changed in Sister name. But have freezed my FD

    Chronology of Joint applicant changed periodically
    A. Dad + Sister
    B. Dad Cancelled sister name and added DIL and the same updated in FD Folio by bank. Dad + My Wife (Daughter in Law)
    C. Dad Cancelled DIL and added my Name. Dad + My Name
    After three months Dad Passed away, so I being a joint applicant submitted DC and completed the procedure and then I got the amount transferred to linked saving Ac E or S Dad+my name, With that amount I made new FD in the same Bank with Current ROI in my Individual Name.

    My Sister have submitted letter stating She have lost the FD Folio in which she was a joint applicant and someone have closed the FD, So as per Bank Manager said your sister have concern on the FD closed so you cannot foreclose FD in Individual Name. (Bank did not inform me anything about FD freezed prior to my visit for closing FD)

    I don’t understand why Bank harassing me, when I have closed the FD that was in Dad and My Name following all procedure as per Bank rules.

    Shocking incident is when Branch Manager phone called me one day to Bank and said that If you give 50% of Amount to Sister together with your concern letter of compromise to Bank then Bank can allow you to foreclose. This issue is going on since March, I am literally frustrated of visiting bank frequently for this but no reply (only reply I get is it’s a dispute so have to wait for head office reply/instruction.
    Please Please advice.
    Thanking in Anticipation
    GK

  18. Hello Sir,
    My father has fd in Punjab National Bank, he passed away recently and I am the nominee. Can I continue it or I have to withdraw it?

  19. Dear Basavaraj
    My father passed away this month and has few FDs in SBI with no nominee. I have been told by a bank employee that I have to liquidate all of them and transfer them to my mother’s account which seems like a huge loss since these were created at an interest rate higher than the current one. Can’t I transfer the ownership to my mother and continue these FDs as it is? She is also a customer of the same bank.
    Regards,
    Tanushree

  20. My dad has some fds which has maturity 2023 according to banks we hv to close those FDS but we want to run those FDS

  21. URGENT

    My Father has many FDs in his and jointly with my mother. My Father expired few months back. He was the First holder in all FDs. He even has a saving account and locker in the bank with him as primary first holder and mother as second. After we submitted Death Certificate bank closed the saving account and opened another in my mother and my name. My mother was First holder in Saving bank. Locker is also linked with this account. The Dad is now shown as deceased in bank account

    Question 1. Should we close the FDs as First Holder has died. Although the FDs were issued at higher interest. I am told by bank that TDS will be deducted from first holder. Bank told First Holder name can not be removed. They tried to remove my DAD name as first holder but could not. They told me submit death certificate with FDs also and close the account.

    Question 2. I went to the bank and asked for FORM 15H. They try to generate the form 15H for my MOM who was second account holder but the system didn;t allow. They said that form 15H can’t be generate as my mother is not the first holder. What to do about Form 15H and how to submit. I remember my DAD used to submit in his name.

    1. Dear Shobhit,
      1) As the FDs are held jointly if the first holder dies means the second holder will be by default a holder of FD. If they can’t change the name means it is their issue. But no reason to liquidate it just because of their fault.
      2) It is again their issue but not your issue.

      1. Hello

        Now how should I handle tax matters if the bank is not giving Form 15H in my mother name. I went today even met Chief Manager but they say Form 15H can not be generated as First Holder is no longer the customer as he is now deceased and all tax liability is on . Can I get Form 15H if not then how to handle this Form 15H matter. Is is required

          1. Sir, There are two holders. Father is First Holder who expired in April. Mother is Second Holder. They tried to generate Form 15H for mother but it shows no FDs in her name as she is second holder in all FDs. Father form 15H is not generating as it says the person is deceased. So I am in a limbo what to do. Bank told me as your mother name is 2nd holder on all FDs it does not mention any FDs in Form 15H. Father is deceased so it is not generating. Even my father name is not mentioned anywhere as the Saving Account n my Father’s name too has been closed and a new Saving Account in my mother account has been opened because in SB account my father name was First. So they has to close the account.

            Tell me how to handle it. This problem is in all banks where my Dad has the FDs as the first holder. IOB and Union Bank. In IOB the bank gave my form 15H where my mother name was in the First but FDs where my Father name was First has been omitted. In Union Bank no FDs has my mother name as First.

            1. Dear Shobhit,
              Currently, because of your father’s death, your mother is a natural owner of the FD. Unable to generate Form 15H is their issue not your issue. For their problems, why you have to liquidate the FDs and create a loss on interest because of lower interest for new FDs? Let them find the ways.

  22. My father who passed away last year was holding few fds at a service cooperative bank for which I am the nominee. I am also his sole legal heir. My father and mother legally seperated while i was a minor and i am living with my mother eversince. I dont not have bank documents or fd receipts with me. Bank secretary says that i cant receive tje amount if i dont produce the original certificates. What can i do in this case?

  23. Hi, if the nominee was died before the the FD holder and after some time policy holder is died without changing the nominee then who’s legal hier can claim FD holder or nominee’s legal hier?

  24. Hi, my dad had FD and joint applicant was my sister but later dad removed her name and added my name and now Dad passed away. I have produced DC and foreclosed the FD and created new FD in my individual name, but the issue is now my sister claims as she was a joint applicant but was removed and necessary changes are done in FD certificate by branch manager, now for this reason bank is holding all my deposit and unable to foreclose any. Please can anyone suggest something to get rid of this headache.

  25. My father made will where he made my son as his legal heir. He died recently. He has 2 FDs with nominee as my siblings. This FD was done few years back. As per my father’s will, my son is his legal heir for all his assets. I have informed the bank and the bank has stopped all operation on the account.

    My question is whether my son is the rightful owner of his bank assets or can the nominees also claim his bank assets without informing me?

    I also broke the FD for which I was the nominee. Bank issues DD to my name as account payee. I did not encash the DD. Later I informed the bank about my father’s death. Now all operations on the account is ceased. Do I get the amount mentioned in DD. If so, how? Can bank refuse to pay because the account is ceased.

  26. Hello,
    My father had opened 3 FDs in his name as single owner and made me the nominee, the amount was transferred from the joint account that I had with father as either or survivor. According to bank, these FDs are linked to the joint account and pre-maturity amount will be credited to the same account, however I am requesting them to provide me with Demand Draft, but they are refusing.

    Can bank force this to transfer these FDs amount to account or they can provide demand draft basis my request?

  27. Hello ,
    Secenario:
    My grandmother has an FD in zila sahkari bank. Maturity 2012, term 3 years.
    My grandmother expired in 2013. In 2012 the FD get auto-renewed.
    Now again in 2015 & 2018, the FD got auto-renewed.
    we are not aware of the fact that our grandmother has FD , now we found that FD and want to withdraw as his son (my father ) is the nominee of that FD.

    Question:
    Do we get full interest accrued in the FD? if not then why, is any RBI guidelines for this?

  28. Hello Sir,
    My father has fd in Indian bank,he passed away recently and i was the nominee in the fd…the bank has charged 1% penalty on premature withdrwal. can you tell me the calus or rbi guidlines which mentions that there wont be any penalty in case of deceased person s fd withdrawal before maturity?

  29. In schematic diagram marked nominee as Mr. Z.
    But while mentioning who will get claim as nominee, you mentioned as Mr. X.
    Probably it will confuse readers.
    What are the option left for legal heirs for Fixed deposits with or without nomination,
    when any one of depositors dies.
    when all the depositors die.
    In short, they can
    a) opt for premature withdrawal
    b) continue the deposit without any change till the date of maturity and then approach bank for it’s closure as per existing rules.
    c) request deletion of the name of the deceased depositor and continue till maturity ?
    Please illustrate cases where deceased depositor was the 1st benificiary and earning staff rate or senior citizen rate, the survivor depositor being either his spouse or non senior or both.
    Please advise.

  30. 2 months back my mom expired n has FD in bank joint wth my name.I hv submitted death certificate ,form and my ID proof.Bank said to gv time of 2 days as records r of 2004.Sir i wan to know wil i get money easily or wil take time.

  31. Hello ,my father who expired in April 2021 has a fixed deposit ( single holder without nomination)whose interest was coming in the joint account held by him n his wife.Can we let the fd continue wid the interest coming in the joint account till maturityWill there be any problem in income tax payment

  32. Hi Sir, My dad recently passed away on the 8th May, 2021. He has some FD’s in a private bank for which my Mom is the nominee. However, those FD’s are to mature at a latter date. Now the bank is requesting us to close the FD’s and get the money transferred to my Dads account and they will open a new account in my Mom’s name and transfer all the proceeds. However, these FD’s were locked at a good interest rate and now the interest rates have dropped. Can these FD’s be transferred to my Mom’s name? If Not can she choose to keep the FD’s active in my Dads name until maturity?

  33. Hello sir my father died and he has given my name on few fds. Can my mother claim and get the amount without my consent from bank

  34. My parents have a joint (Either or Survivor) saving account in BOI.
    My father opened a FD (manual and not online) in his name (from the joint saving account) and I am the Nominee.
    My father passed away in Dec 2020 and the FD already matured last week and auto reinvested to 2023.
    Can my mother claim the FD as the FD amount was from the joint account( but in my Fathers name).
    Is it required my involvement to withdraw the FD as I am the Nominee to my Fathers FD.

    Thanks for your kind advise.

    1. Dear Prabhat,
      As the FD is in the form of either or survivor, your mother is a natural owner of the FD. You are being a nominee, no rights to liquidate or claim as she is the owner.

  35. Hi

    My father died in Aug 2020. His FD is maturing in Feb 2022. I am the nominee and claimant as per registered will.

    F.Y. 20-21 father’s return will be filed as deceased. I want to continue these FD till maturity.

    For 11 months till maturity TDS will be deducted on interest earned.

    Bank branch is not sure if these FD can be transferred in my name, as I am not second applicant. Can these FD be transferred in my name, they were issued in 2012 and maturity is in 2022.

    I am worried about TDS amount applicable on these FD and bank will deduct, can this TDS be transferred to me after maturity, if FD is not transferred in my name.

  36. Is there a way to transfer Canara Bank’s FD to wife, who is also the nominee, after Husband’s death without paying tax? The wife is the nominee but does not have a joint account with the deceased. We are looking for options to transfer the FD to the wife without dissolving it, so it is not shown as income just FD transfer to spouse or legal heir after death. Thank You.

  37. hello sir. sir my father passed away recently and he was holding an account with the karnataka bank for almost more than 20 years. all the transactions of the bank were handled by himself but from past 2 years he on wheel chair. after my grand father passed away my younger brother who is married and who stays along with my father. has taken all the pass book and bank related stuffs. now we are not aware of any of the transaction details, he just gave an FD bond which was kept by my father in my name and he did not let us know anything else. now will i be able to get the details from the branch bank regarding my fatehr account. he has done the same to my other 4 brothers and two sisters also.
    please do suggest sir thank you

  38. Dear team
    i am also facing the same kind of issue , recently father passed away on aug month, and he is having fixed deposits. we might that there is nomination avaiable.. unfortunately one fixed deposit is not having the nomination..
    we have SBI (earlier it is SBH) almost my father is having 20 years relation with bank.
    when we submit the claim , they are providing very lenghty procedures and many formas even though we submitted the death cetificate , legal hirer and other formalites which is having
    now banks are making delay and creating the unncessary documentation even we submit all the things..
    staff are also new people and not able to understand the situvation
    my mother could not be go to bank frequently due to the present pandamic situvations
    bank is SBI ALAKAPURI HYDERABAD
    KINLDY DO THE NEEDFUL IF ANY ONE KNOWS THE BRANCH TEAM

  39. Is Second Account Holder Is eligible to give 15H declaration on behalf of deceased Depositor for non deduction of TDS on FD interest payable In Case Of Either Or Survivor Mandate

  40. Good Evening,

    My father had quite a number of Fixed deposits in an NBFC called Tamilnadu PowerFinance, all of which were solely earned by him. The deposits were opened in His name and His mother’s name, with his Mother’s name as primary holder and his name as secondary holder. Some deposits were also opened with his Mother’s name as Primary holder and my name as secondary holder and some with my sister’s name as secondary holder. Both my father and my Grandmother passed away recently, Grandmother died first followed by my father a week later.

    Following that we approached Tamilnadu Powerfinance, submitted all relevant documents, and all the fixed deposit proceedings were paid to me and my sister.

    Now, my question is, my grandmother has one other daughter (my Father’s sister). Does she have a right to the fixed deposit proceedings, even if all the money was my father’s to begin with ?

      1. Thank you for your response.

        But I want your opinion on one small issue. Regarding the Fixed Deposits that I mentioned above, all of them were held in E or S (Either or Survivor) or A or S (Anyone or Survivor) mode.

        In that case, isn’t the surviving joint holder entitled to the full share of the deposit over the legal heirs of the primary deposit holder (who is dead) ?

  41. 1.Sir, my father passed away in Dec 2020 , he has FD in pnb @9%.
    2. My mother is registered as nominee in fd certificate.
    3. FD will be matured on dec 2022.
    4.Sir my question is to you whether my mother able to continue till maturity because on maturity the FD converted into good amount..?
    If i withdraw immediately i suffer good int loss. Suggest sir

  42. Sir its been 3 years to my father’s death. Before his death he told us about the fd in SBI bank and also said that my mother is a nominee . We don’t really have any receipt related to fd . Fd has been matured . We want to claim it, but we don’t really know the procedure. Can you please help us with it like what kind of documents or certificates we need .

  43. Hi Sir,
    My father(1st holder) and mother(2nd holder) had a fixed deposit jointly with mode of operation ‘Either or Survivor’ whose maturity date is 14.12.220. After my father’s death, when we informed to the bank, bank is telling us to transfer the fd to my mother’s name and that no interest will be paid for the remainder of the paid. Please let me know if my mother is eligible for the interest for the remaining time or not?

  44. Dear Sir,
    My father and mother had a joint Term deposit . My father expired on aug 2020,
    FD got auto renewed on 28/02/2021, today i visit the branch to close the FD with fathers death cert, but from bank side they told me that since the FD got renewed u will not able to close the FD and only able to close the FD on maturity
    Kindly advice whether information i got from bank is correct
    Regards
    Arun

    And will no

  45. Sir, My Husband passed away on 25/10/2020. He is super senior citizen, I am also senior citizen and nominee to this FD. He opened a Fixed deposit of 10 Lakhs in a Co-Operative bank Bangalore on 19/09/2019 at 10.5 % for period of 25 Months (Maturity Date 19/10/2021). the bank was paying monthly interest of 8750 month and credited to His SB account from 19/10/2019 after informing about his death and requested to transfer fixed deposit after closing, they stopped interest payment from 19/12/2020. Finally, they have transferred 930000 from 10 lakhs, and quoted that penalty was applied. But according to RBI guideline, they have clearly suggested ” NO PENALTY applicable and full payment(Principal and Contracted Interest) is given to the family (nominee)

  46. Hi,
    We have an FD in mine and husbands name which will mature by May.Now we want to break it and send it to HIS overseas account. He is not here as well.The issue is that FD is not anyone or survivor kind. So what procedure should I follow to get the maturity amount

  47. My uncle (a) and my dad(b) jointly opened f.d , for 3 lakhs and they both have 2 f.d bonds for 1.5 lakhs per each… having name jointly..but the interest was going to first person (a) that mean only for my uncle..now they both have mis understanding so my dad decided to separate bonds,but my uncle not willing to break the f.d but the interest of monthly was going to my uncle..how to rectify this problem

  48. We have received succession certificate from court to have FDs transferred to the heirs. SBI has closed the FDs basis the Succession Certificate.

    Canara Bank insisted we sign a Indemnity Bond with Surety, which is for those who do not have a Succession Certificate.

    Are they allowed to?
    Why does Canara Bank not honor the Succession Certificate?

  49. My wife died on 22/11/2020. She had two fd .
    One fd is nominated to our son which is transfered to my son’ account but other one fd & savings account is not nominated. We have given all the documents to bank. Bank is now asking the two surety’s details of immovable/ mivable property detail , salary slip etc ….I have discussed with bank manager that why two surety will give me all these documents. He is sayi it is bankspolicy. As my wife was a Journalist so very next day it was reported in detail in that news paper aling with my name as husband & her only son’ name detail who is an Army officer.
    Pls help me what to do
    Thanks

  50. Sir, . My mother expired in 2010 and fd mature in 2011 I have fd certificate and all documents regarding nominee but i am unable to break fd bank employees say every thing is not ok. Now I have one question interest is continue Or not.

  51. Dear sir ! I’ve fixed deposit with joint account holder and mode or operation is either or survivor and I’m the nominee. My father recently died. Now the amount will be transferred to my mother with same nominee or what ? Kindly reply. Its quite urgent. Thank you in advance

  52. In fd account there are three Depositors in which second depositor was death.
    Now first depositor only said for nomination without third depositor sign before maturity and also want to remove second depositor name in FDR by death certificate.
    Your opinion not please.

  53. My father had a joint fixed deposit(FD) in a bank. After his death, my mother became the sole holder of the FD as par the bank laws.After her FD got matured, she willingly transferred amounts in my bank account.
    After two years of her death, my sister threatening to file a case against me if i do not give her the share.
    What should i do now? My mother willingly gave me the money in my bank, than what wrong have i done?
    Please guide me, can my sister still file a legal case and secondly do i still owe her any money?

    Regards

  54. Hi Sir,
    My Father have FD(for 5 year) in private bank and my mother is nominee. But my father died in Oct 2020. Also my father have a saving account in same bank and there is no nominee in bank saving account now i am trying to break the FD but bank person you can’t do it because you don’t have nominee in bank saving account.

  55. My Dad expired in Dec 2020 and was a primary SCSS account holder having joint account with my mother. My mother too has an SCSS account in which she is the primary account holder but money in both the accounts put together doesnot exceed the max limit of 15 lakhs.
    We went to the post office to transfer the money in my mother’s name but were told that since my mother also has SCSS account, we will have to close my Dad’s account. My question is whether there would be penalty for closure of the account in which my Mom is also a joint holder and is a senior citizen

  56. Hi sir my father has done TDS (FD) in 2011 with 9.55% for 10 years, he was die in 2018 now it is 4% or 5%, my doubt shall I inform now itself? or shall wait till maturity?, Do they have legal right to force me to opt out of current high interest plan? and do they have legal right to ask after maturity?

  57. My Father died on Dec 2020 and he had invested in tax saving mutual funds and submitted the same to the bank for tax saving.
    I am the nominee for both the bank account and the mutual funds.

    Please advise how do i go about it to close the mutual funds and what if any payments need to come in.

  58. I deposited money in my father’s bank account so that father can create an FD on his own name as senior citizen gets higher FD rate. My father died few months ago, and I am the nominee in all his FDs, do I have a legal claim as I had deposited money in my father’s account in the first place or do my siblings have a legal claim on FD money?

  59. Our Mother expired leaving a bank account and FD without any nomination.
    Please tell me the right procedure of getting a letter of disclaimer from legal heirs residing in other states , and one of them is abroad.

    Should I courrier the stamp papers and get it signed and notarized. But all of them have to sign on a single document and get notarized.
    Please guide.

  60. My father-in-law died on 13th Jan 2021 and he had FD with will get mature in Dec 2021. We can continue the FD till maturity. But will the bank deduct double TDS at the time of maturity?

  61. My father recently expired in Nov 2020 , he has a fd . I am the nominee of fd, can I continue the fd. Bank says I cannot

  62. SIr,

    My father expired and has about 8 FD’s ( each one of them small amount) with Indian Bank. He had nominated my mother as the nominee for 6 accts. I think, we have misplaced the original FD receipts. So what do we need to do get the amount deposited in mothers acct or issue a DD for the said amount as she does not have an account in the bank . Please advise.

  63. Dear Sir, My father died in 2014, he had got the FD done, but forgot to name the nominee, can you tell me how to withdraw that money?

  64. Dear sir,

    Q1] My father expired in Dec 2020. He has some FDs with myself as nominee. Presently, I am not in urgent need of that money. His, FDs mature in 2023. As the current interest rates are low, can I inform them after maturity or do I need to inform them now itself as soon as possible?.
    Q2] If I inform now itself, I am at fear whether they ask me to opt out of current plan (which has high interest rate) to new plan (low interest rates). Do they have legal right to force me to opt out of current high interest plan?

    Thanks in advance!!

  65. Hello sir

    My father has a bank account in SBI and he made FD without nominees .he passed away on October 2020 and his FD already got mature …. So I check ur guidence and it’s there any period for claiming for FD of desease person since I can’t visit the town for time being now …

  66. 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?

  67. 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?

  68. 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.

  69. 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

  70. 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.

  71. 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.

  72. 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

  73. 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?

    1. 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.

  74. 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

  75. 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?

  76. 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

  77. 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

  78. 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

  79. 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

  80. 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

  81. 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

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

          1. 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

  82. 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?

  83. 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.

  84. 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

  85. 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

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

        1. 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?

  87. 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.

  88. 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

  89. 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

    1. 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

  90. 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

  91. 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?

  92. 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.

  93. 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.

      1. 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.

        1. 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.

  94. 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.

    1. 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.

  95. 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.

  96. 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.

  97. 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?

  98. 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.

  99. 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?

  100. 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.

  101. 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…??

  102. 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.

  103. 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.

    1. 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.

  104. 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.

  105. 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.

  106. 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.

  107. 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?

    1. 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.

      1. 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.

  108. 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 ????

  109. 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.

  110. 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?

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

      2. 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?

  111. 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

    1. 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.

      1. 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 ?

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

  113. 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

  114. 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

    1. 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.

  115. 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.

  116. 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

  117. 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!

      1. 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.

        1. 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.

  118. 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.

  119. 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?

  120. 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.

  121. 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

  122. 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.

    1. 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)

      1. 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.

        1. 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.

          1. 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 ?

            1. 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.

                1. 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.

              1. 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.

  123. 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 ?

  124. 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?

  125. 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

  126. 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?

    1. 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.

  127. 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

  128. 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

  129. 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?

  130. 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

  131. 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 ?

    1. 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.

      1. 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

  132. 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.

    1. 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.

      1. 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.

    2. 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.

      1. 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.

  133. 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.

  134. 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?

  135. 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.

  136. 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.

      1. 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 ?

  137. 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

  138. 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

  139. 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?

    1. 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.

  140. 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 ?

  141. 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.

  142. 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.

  143. 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

  144. 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?

    1. 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.

  145. 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.

  146. 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

    1. 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.

  147. 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.

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

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

  148. 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.

    1. 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.

      1. 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 .

  149. 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.

  150. 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

      1. 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

          1. 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.

  151. 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 ..????

  152. 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?

  153. 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.

  154. 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.

  155. 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

        1. 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

          1. 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.

  156. 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.

    1. 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.

      1. 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.

        1. 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.

  157. 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

  158. 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.

      1. 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.

  159. 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

  160. 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.

  161. 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

  162. 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?

      1. 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?

  163. 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.

  164. 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.

  165. 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.

      1. 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

        1. 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.

  166. 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?

  167. 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?

  168. 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.

  169. 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.

  170. 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

  171. 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

  172. 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.

  173. 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

  174. 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.

  175. 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.

      1. 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 ?

  176. 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

    1. 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.

  177. 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

  178. 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 ?

      1. 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 !

  179. 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 ?

  180. 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 ?

  181. 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.

  182. 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

      1. 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.

  183. 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 ?

      1. 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.

  184. 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.

  185. 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.

    1. 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.

  186. 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.

    1. 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.

      1. 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.

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

            Thanks

              1. 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.

                  1. 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).

                    1. 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.

  187. 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?

    1. 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.

        1. 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

    2. 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.

      1. 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.

        1. 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.

  188. 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 ???

  189. 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.

  190. 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.

      1. 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 🙁

  191. 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

    1. 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

      1. 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 . . .

    2. 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.

  192. 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.

      1. 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.

  193. 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

  194. 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

  195. 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.

  196. 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?

      1. 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

  197. 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.

      1. 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.

  198. 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.

  199. 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 ?

  200. 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.

  201. 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

  202. 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?

    1. 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.

      1. 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?

  203. 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.

      1. 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.

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

  204. 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

  205. 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.

  206. 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.

  207. 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

  208. 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?

      1. 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

  209. 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

      1. 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?
        .

  210. 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.

  211. 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.

      1. 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.

        1. 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.

          1. 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.

              1. 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.

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

        Pradeep Joshi

  212. 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.

  213. 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.

  214. 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.

      1. 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.

  215. 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

    1. 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.

      1. 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?

  216. 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 ?

  217. 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.

  218. 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?

  219. 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 !

  220. 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

    1. 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.

      1. 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

      2. 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.

    2. 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

      1. 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.

        1. 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.

              1. 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

                  1. 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

                    1. 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.

  221. 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

      1. 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.

  222. 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.

      1. 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?

  223. 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

      1. 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

  224. 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

    1. 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.

  225. 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.

    1. 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.

  226. 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

  227. 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

    1. 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.

    2. 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

  228. 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?

  229. 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.

  230. 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

    1. 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.

  231. 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.)

  232. 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.

  233. 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

  234. 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.