FD Claim: How to Receive FD Proceeds Without a Nominee or Will? Learn the Complete Legal Process for Claiming Funds from the Bank
FD Claim Process: If a family member has passed away and there is no designated nominee for their assets—or if no will was ever executed—how can a claim be filed? Let’s find out.
FD Claim: An FD, or Fixed Deposit, allows an individual to secure their financial future by investing a lump sum amount. However, have you ever considered how you would go about claiming the proceeds of an FD in the event of your own death, or the passing of a family member?
There is no need to panic, however. Even if an individual passes away without having designated a nominee for their FD—or without leaving behind a will—their family members or legal heirs can still claim the funds from the bank. Nevertheless, doing so requires completing a specific legal procedure.
Notify the
The first step in this process is to formally notify the bank of the death. Additionally, family members must visit the relevant bank branch to submit copies of the death certificate, the FD receipt (or the FD account number), and the deceased’s KYC (Know Your Customer) documentation. Upon receipt of these documents, the bank will initiate the process to handle the FD as a “deceased claim.”
Establishing Legal Heirship
In the absence of a designated nominee, the bank undertakes the task of verifying the identity of the legitimate legal heirs. To establish this, claimants are typically required to submit documents such as a Legal Heir Certificate, a Succession Certificate, a Ration Card, an Aadhaar Card, and a PAN Card.
Procedure Varies Based on the FD Amount
The specific procedure for claiming the funds varies depending on the value of the FD. For relatively smaller amounts—typically up to ₹5 lakhs or ₹10 lakhs—many banks will process the payment after obtaining an Indemnity Bond, an Affidavit, and a No Objection Certificate (NOC) from all the legal heirs. However, if the FD amount exceeds this threshold, the bank will require a Succession Certificate issued by a court of law. This certificate is obtained from the District Court, and the process of acquiring it may take some time.
What If There Are Multiple Heirs?
If there are multiple legal heirs entitled to claim the FD proceeds, the consent of all such heirs is mandatory. In such cases, one individual may be designated as the primary claimant, while the remaining heirs provide their No Objection Certificates (NOCs). If a dispute arises, the matter could potentially end up in court.
Will the FD interest continue to accrue?
Even if the individual in whose name the Fixed Deposit (FD) is held passes away, the bank will continue to make payments. Interest continues to accrue on the FD in accordance with the applicable rules until the bank settles the claim. However, the interest rate may be subject to change after the maturity date.
These documents will be required
If you need to file such a claim, you will require certain essential documents, such as:
Death Certificate
Aadhaar or PAN Card
Proof of Address
Passport-sized Photograph
Certificate of Legal Heirship
Succession Certificate
Affidavit
It is worth noting that in the absence of a nominee, the family may be required to furnish a greater number of documents and legal proofs, and may occasionally even have to undergo court proceedings. Therefore, designating a nominee and executing a Will at the time of opening an FD helps prevent future disputes and delays. Furthermore, please be aware that the regulations vary slightly from one bank to another; as such, it is advisable to visit the relevant branch to obtain full details before initiating the claim process.