If you hold fixed deposits (FDs) but have neither added a nominee nor written a will, your family may still be able to access the money after your death, but the process is usually slower, more document-heavy, and potentially more stressful than it needs to be.
Without a nominee, the bank cannot simply hand over the money to whichever relative appears first. It will ask for evidence of legal entitlement such as death certificate of the depositor, claim form prescribed by the bank, identity and address proof of the claimant(s), FD receipt/details, if available, legal heir certificate, succession certificate, probate/letters of administration, or other documents depending on the bank’s requirements, indemnity bond and/or declarations from other legal heirs in some cases.
Whereas, for your family, if there is no will, that means the bank may insist on stronger proof of heirship before releasing the FD proceeds.
What to do in such cases?
You can ask the branch for its specific document requirements for a deceased depositor with no nominee and no will.
Collect documents such as a death certificate, identity/address proof, FD details, PAN/Aadhaar (or equivalent KYC documents), and proof of relationship.
Submit the declarations, consent/NOCs, or heirship documents covering all persons entitled under the applicable succession law to your respective bank.
Provide additional documents to the bank, such as a legal heir certificate, a succession certificate, or a probate/letters of administration from a competent court.
Your bank may ask for indemnity bonds or declarations before releasing funds in no-nominee cases.
Once the bank is satisfied with the legal entitlement, it can release the FD amount along with applicable interest up to the relevant date under the deposit terms.
Without a nominee and without a will, the bank’s risk controls become stricter. If court-issued documents are required, the timeline can extend from weeks into months, and sometimes longer if there is a dispute among heirs.
“Exact document requirements may vary by bank, deposit value, account type (single, joint, “either or survivor,” etc.), state-level heirship documentation practices, and whether there is any dispute among heirs. Your family should follow the branch’s written claim procedure and seek legal advice if a succession certificate becomes necessary,” said Thomas Stephen – Director & Head – Preferred, Anand Rathi Shares and Stock Brokers.
What documents do banks typically ask for before releasing the FD proceeds?
The process for claiming FD proceeds depends on whether the depositor is alive or deceased.
If the depositor is alive, the FD can generally be withdrawn or redeemed at maturity by submitting a closure request, providing identity verification if required, and presenting the FD receipt where applicable. In many cases, especially for online FDs, the proceeds are automatically credited to the linked bank account.
However, if the depositor has passed away, the claimant must follow a separate process. Banks typically require the depositor’s death certificate, a claim form, identity and address proof of the claimant, and documents establishing the claimant’s right to the funds, such as nominee details, a legal heir certificate, succession certificate, probate, or indemnity bond, depending on the circumstances.
The exact documentation required may vary based on the bank’s policies, the presence of a nominee, and the value of the deposit.
What are the RBI guidelines governing the settlement of deposits when there is no nominee?
RBI requires banks to have a simple and transparent process for settling claims of deceased depositors.
If there is no nominee, banks can ask legal heirs to establish their entitlement through documents such as a Legal Heir Certificate, Succession Certificate, Probate of Will, or other acceptable evidence.
If there are multiple legal heirs, how is the FD amount distributed?
If there are multiple legal heirs, the exact distribution depends on whether the deceased left a valid will. If there is no valid will, the FD amount is distributed among the legal heirs according to the succession laws applicable to the deceased.
“To process the claim, banks may ask all legal heirs to provide their consent through No-Objection Certificates (NOCs). However, if there is a disagreement among the heirs or the bank requires additional legal clarity, it may ask for a Succession Certificate or a court order before releasing the deposit amount,” commented Thomas Stephen.
What are the most common mistakes families make while claiming FDs of deceased relatives?
Common mistakes include not informing the bank promptly about the depositor’s death, failing to keep nomination details updated, and not gathering essential documents such as the death certificate and identity proofs of the claimant.
Another frequent misconception is that a nominee automatically becomes the owner of the deposit. In reality, a nominee generally receives the funds on behalf of the legal heirs, and the final ownership is determined by the deceased person’s will or the applicable succession laws.
What should families do if the original FD receipt is missing?
If the original FD receipt is missing, families need not worry, as most banks can issue a duplicate receipt after verifying their records.
The first step is to inform the bank about the loss and submit a written application explaining the circumstances.
The claimant may also be required to provide details such as the FD number, deposit amount, and date of deposit, if available. In addition, banks may ask for an indemnity bond or declaration form before processing the request. Once the bank verifies the information from its records, it can proceed with the claim settlement or issue a duplicate FD receipt.
What costs should families expect when obtaining a succession certificate?
The cost of obtaining a succession certificate varies across states, as court fees are governed by state-specific laws and are often calculated as a percentage of the value of the assets involved.
In addition to court fees, families may also incur expenses such as lawyer’s fees if legal assistance is sought, as well as costs related to documentation, notarisation, and affidavits. It is also important to note that the process may also take several weeks or months, depending on the court and the complexity of the case.
Disclaimer: This article is intended for informational and educational purposes only and should not be construed as legal, tax, financial, or investment advice. The process for claiming fixed deposit proceeds after a depositor’s death may vary depending on the bank’s policies, the presence or absence of a nominee or will, the value of the deposit, applicable succession laws, and the specific facts of each case. Readers should consult their bank, a qualified legal professional, or other relevant experts for advice tailored to their circumstances. Rules, procedures, and regulatory guidelines are subject to change.
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