interest on deposits of my mother who was expired ob 27.05.2016

sir/madam,
my mother was having deposits of around 5 lacs with a local fund company. all deposits were for one year. my mother expired on 27.05.2016. the deposits were getting expired during the year. we are four legal heirs. we didn't receive any formal information from that company. recently we visited the local company for withdrawal of deposits after getting legal heirs certificate. the fund company informed as follows:
1. if deposits are withdrawn from the company then no interest will be paid for the period from may 2016 till this day.
2. if deposits are continued with them in other name then interest from may 2016 till this day will be given.
we are not clear as how to proceed further.

we sincerely request your advice please.

thanks,
k.vadivel murugan.
8870086920