Legal consequences of a deceased

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.

It is the benefit of joint account holder since the survivor can claim the amount held in the account / FD.

 Hello Sir

In the case of untimely death of first account holder the second holder gets Fixed deposit money. The FD account can be operated by the second account holder, and he/she will become the prime holder. The first holder can access the funds only if the second holder passes away.

The nominee will get the principal amount and the interest that has been accumulated only if both depositors die. However, in the death of the second account holder you can delete their names and add someone else as your nominee. In case no nominees have been added to the account, the legal heirs can access the FD amount.

Steps to claim FD

1. Contact the FD provider to get information about the account type

2. Submit the required documents such as claim form, death certificate, succession certificate and indemnity bond.

3. Choose to continue the FD or liquidate it.

Regarding renewal, generally on maturity, an FD can be directed toward renewal or withdrawal. The renewal clause is available as an auto-renewal feature, wherein the bank or financial institution will automatically renew your deposit for the same period of time and at the same interest rate on maturity. This is a good option if you have invested funds without any foreseen need for them.

I hope this helps to resolve your query.