What To Do When A Fixed Deposit Holder Dies Before Maturity?

    Fixed deposits are popular among risk-averse investors, especially among senior citizens who are dependent on their investments for day-to-day expenses. In the event of death of a Fixed Deposit holder, the nominee can claim the FD on the date of maturity. In case of a bank five-year tax-saving FD, the nominee can withdraw the FD even before the lock-in period.

    Purpose of the nomination is to simplify the disbursing procedures even after the death of an account holder. Following are some of the important aspects of FD nominees:

    • A nominee and legal inheritor can be two different individuals.
    • A nominee can be a family member, distant relative, or even a friend.
    • Even if there is any rival claim on the ground of being the legal inheritors of the deceased, a nominee only can withdraw deposits.
    • If the nominee has not been appointed at the time of opening a Fixed Deposit (FD), it can be appointed at a later stage too, but before the maturity date.
    • If there is no nominee, the legal inheritor is eligible to withdraw the deposit at the maturity date. He/she needs to produce a succession certificate or policy holder’s will, if available.
    • If it is a joint fixed deposit account, then the other account holder can claim the fixed deposit.
    • HUF, trust or societies are not allowed to appoint nominees.

    Dormant FD account

    If there is no claim for the FD, then the FD issuer may announce the account as a dormant account. To avoid long and inconvenience processing of FD withdrawal, investors must appoint a nominee and their family members need to be aware of the claim in the deposit holder death.

    Joint FD accounts

    You can nominate only one person for your fixed deposit account. However, you are allowed to open fixed deposit accounts jointly with more than one person but the nominee will be one person only.

    Change of Nominee

    The FD account holder is allowed to change the nominee, even during the deposit tenor. So, take advantage of the nomination facility even if you forget at the time of opening the FD account.

    Wealth Building FD Returns

    There are many benefits of fixed deposits (FD). Most individuals have FDs, at least a one. If still not, you can consider Bajaj Finance FDs. Bajaj Finance FD rates are up to 6.85% that includes 0.25% additional interest rate for senior citizens. Other than this, online investors can earn an additional 0.10%. Let’s see more benefits of FDs.

    1. Lucrative Interest Rates

    Bajaj Finance FDs offer interest rates up to 6.85%. Assured returns will help you on wealth building. You can open an FD account with as low as Rs. 25,000 that can go up to one crore.

    1. Periodic and regular payouts

    Senior citizens seek safe investment avenues that can keep their life savings safe and provide regular returns. Senior citizens can avail periodic payouts. It can be credited to their accounts monthly/quarterly/half-yearly or annually as per their preference.

    1. FDs for PIOs/OCIs/NRIs

    Non-resident Indians (NRIs), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) with an NRO account can invest in the Bajaj Finance FDs.

    1. Flexible Tenor

    Bajaj Finance provides you with flexible investment options. You can invest your funds for 12 months to 60 months as per your choice.

    1. High Stability and Credibility

    Bajaj Finance is one the safest Indian NBFCs that have earned the highest stability ratings national and international.

    • CRISIL’s FAAA/Stable rating
    • ICRA’s MAAA (stable) rating
    • An international rating of ‘BBB’ by S&P Global
    1. Easy Online Application Process

    You can open a Bajaj Finance online FD using your debit card. Save yourself from the hassle of the lengthy documentation process in banks.

    In the event of sudden death of the FD depositor, the nominee gets to claim the FD upon maturity. If no nominee was appointed, then the legal inheritor can withdraw the deposits. A single nominee has to be appointed even for the joint fixed deposit account. The nominee can be changed anytime before the completion of the FD tenor. The legal inheritor cannot claim the deposit in case the deceased had already appointed a nominee. For earning considerable returns through FD, you can invest in Bajaj Finance FD as it offers high interest rate along with easy online application process and flexible investment options.

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