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

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• Account holder had fd in force with son as nominee at the time of her passing. After maturity proceeds were transferred to savings account and savings account doesn't have any nominee. Can the nominee claim the maturity amount of fd later as fd nominee. Bank says that since amount has been transferred to savings account and it does not have any nominee s

  If after the passing of account holder, nominee doesn't claim the fd maturity amount and the proceeds goes to savings account which does doesn't have nominee registered then can the nominee claim the fd maturity amount as a fd nominee later if that amount is lying unclaimed in savings account? Thanks.

  • Dear Enquiry,
    If the nominee is the only legal heir then he can claim that amount.

• Hello - My father had a pension account and 2 FDs with my mother as nominee.. Since he passed away she put in claim to get the FD money (prior to its maturity in 2024). When we received the FD money we can see ahuge amount has been cut as penalty. Is that valid?

  • It cannot be valid if u chose tao continue the deposit till maturity.Since you closed the deposit before maturity the interet waill attract the fine as per terms & conditions.

  • Dear Parvathy,
    It is illegal. Better to raise an issue with bank immediately.

• Dear Sir

  My grandfather had a Fixed Deposit of Rs.60000/- which is opened 30 years and he had nominated by Mother as a nominee... We came to know by recently that the FD not yet withdrawn by mother. But we don't have FD receipt copy. But having FD account number. Whether we can able to claim it... Please helps us to know.

  • Dear Sathya,
    Yes, you can.

• Hi Sir, my father had a FD in BOI (amount was deposited by court as a settlement amount) and he passed away recently, bank is denying to provide the FD amount to nominee and they are asking for a letter from the court, please help with the process

  • Nominations are clear and FD also matured but they are saying the amount is deposited by court(compensation amount given by government in one of the court case) and it will auto renew every 5 years until and unless they get a letter from court to release the amount

    • Dear Yogesh,
      If such conditions are there, then obiviously court consent is required.

  • Dear Yogesh,
    When the FD is created, then why the court permission (especially if nominations are clear)?

• Account holder is no more now, have two accounts 1. F.D. and 2. Savings account. F.D. have till to mature but interest on this account is credited quarterly to savings account. Savings account have much more balance, which doesn't get much interest.
  Please suggest me, can it possible to withdraw amount from Savings account and continue both the account till F.D. maturity?

  • Dear Popat,
    At first you have to update the status of death of account holder with the bank.

• Hi sir,

  My mother passed away on june 18 2022.She hold a fixed deposit at govt of treasury. Fd tenure was for 10 years and its not matured. Iam the nominee of the deposit. The treasury dept asked to continue it till maturity. She was tax payee and Im also tax payee. Presently deposit is in her name and tax is being deducted from interest regularly. Whether tax is applicable to a deceased person's deposit? Byclosing deposit and to convert it into my name whether any penal charges will be deducted? Whether it can be continued in her name itself and while filing ITR whether refund can be claimed? Kindly explain

  • Dear Soja,
    Tax will be in the name of the deceased person up to the financial year in which she died. Afterwards it is your responsbility.

• My father and mother's name was jointly on either or survivor account mode. Father has died in July 2022.he was senior citizen, getting interest rate 7% around on Fd. Now my mother(age 58) will be continue on account.. So i want to know... Will be she able to get the same interest rate on fd after deleting father's name on account??..as my mother doesn't come in senior citizens yet.. Either survivor me mother ko bhi 7% intereste milega ki kam ho jayega ? ? Plzz tell me

  • Dear Manu,
    Yes, she will earn the same interest up to maturity.

• My uncle passed away on 2015, we found he had some fixed deposits (Bank of India ) which were auto renewed. We transfeered them to my aunty account as she was nominee but the bank deducted the interest earned afted 2015.
  Is there any rule.

  • Dear Suman,
    They must give savings account rate from 2015. You can question them.

• Hello sir
  My husband took a home loan from sbi and secured it by sbi life .after 2 months he had stomach pain which diagnosed as cancer..after 1.5 year he had passed away. Sbi life denied to settled the loan by saying that we don't tell the fact at the time of taking loan. What can I do in this situation?

  • Dear Madhu,
    Please complain against SBI Life with IRDA Ombudsman.

• I have a question.
  In case there is no nominee, but there is a registered will, can the bank ask for probate for fixed deposits if they are not in Mumbai, Chennai or Kolkata (that properties, both movable and immovable are in Pune)?
  As I understand, probate is not required outside Mumbai, Chennai and Kolkata.
  The maturity amount is more than Rs. 5 lakh.

  • Dear Yateen,
    They may ask.