Saving Account Tips: When does your money lying in the bank become unclaimed, bank customers should know the rules...

When does a deposit become unclaimed? When you do not make any transaction with the deposits kept in the bank for 10 years or more, then it becomes unclaimed. Unclaimed deposits include current and savings accounts as well as fixed deposits.

The unclaimed deposits are transferred to the Depositor Education and Awareness (DEA) Fund, where it is invested in instruments such as government securities.

However, once the money is unclaimed, you have to go through a lot of trouble to prove it is yours. To prevent this from happening, take these precautionary steps.

Adding nomination-

To prevent deposits from going unclaimed, consider adding nominees to your bank accounts. It is very important to add nomination so that your money gets transferred to the person smoothly after your death. This allows immediate access to beneficiaries without unnecessary complications.

Sharing details with family-

Tell your family members openly about your bank account and deposit details. This transparency will help your loved ones manage these accounts effectively in unexpected circumstances. By doing this you can save your hard-earned money from going unclaimed. When people have all the details, they can claim the money.

KYC update-

Update your KYC details with the bank regularly. Apart from meeting regulatory requirements, this prudent measure ensures accurate and updated information. Facilitates seamless communication between you or your nominees and the Bank and protects your deposits from going unclaimed.

Closing additional accounts-

Review your accounts periodically and close unnecessary accounts to reduce the risk of funds going unclaimed. Consolidating funds across a few active accounts simplifies financial management and reduces the chances of any account falling into the unclaimed category.

Keeping FD slips safe-

When investing in fixed deposits (FD), keep the FD slips safe. These documents serve as proof of your investment and are important for the nominees or beneficiaries to claim the money. If there is a need to claim an FD, keeping family members informed about the whereabouts of these slips streamlines the process.

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