Dealing with financial matters after the demise of a loved one can be challenging. Understanding the process becomes crucial in handling the emotional and administrative situation smoothly. This blog focuses on how to claim a Fixed Deposit (FD) after the death of the primary holder.
Importance of Nomination in Fixed Deposits
Life is unpredictable and preparing for uncertainties is an integral part of financial planning. Being prepared for its financial implications in the face of tough times like the demise of a loved one can significantly ease the burden on the grieving family. Fixed Deposits, with their stability and reliability, can play a critical role in securing the financial future of people we care about.
FD Claim Procedure for Single Holder Accounts
For FDs with a single holder, the nominee plays a vital role in the claim process. The nominee can visit any ICICI Bank Branch with the necessary documents (explained in detail below). Nominees can expect to receive the principal amount and accumulated interest.
FD Claim Process for Joint Account Holders
The claim process for Joint Accounts depends on the type:
Latter or Survivor:
The second account holder becomes the prime holder. The nominee receives the amount only if both depositors pass away.
Former or Survivor:
The second holder can claim the FD if the first holder passes away. The nominee claims in case both holders are no longer alive.
Anyone or Survivor:
The survivors receive the balance if one or more account holders pass away. The nominee gets the amount if all account holders are deceased.
For Individual Account:
Claiming FD With Nominee: Step-by-Step Process
If a nominee is designated, he/she must provide the required documentation, including a death certificate and Know Your Customer (KYC) compliance, to claim the FD maturity value.
Claiming FD Without Nominee
In the absence of a nominee, legal heirs must provide supporting documents, i.e. death certificate, claim form and KYC documents, for claiming the FD proceeds following maturity.
Please note that the documentation differs based on the amount. The three categories are:
- Up to ₹ 3 lakh
- ₹ 3 lakh - ₹ 25 lakh
- Greater than ₹ 25 lakh.
For Joint Account:
Either or Survivor
Survivorship is straightforward – The survivor continues with the FD Account by producing the primary holder’s death certificate. However, the survivor can continue in the same name till maturity or can opt for name deletion of the deceased.
Jointly or Survivor
The survivor assumes ownership after the primary holder's death, established with the death certificate.
Former or Survivor
Same, as in the Either or Survivor case.
Anyone or Survivor
The next member assumes the primary role until the FD maturity, with consent from other joint holders, supported by the primary holder's death certificate.
Points to Note
If all joint holders pass away, the nominee becomes the beneficiary, complying with the rules. Legal heirs claim in the absence of a nominee.
Appointing a nominee in all FD Accounts is essential.
Premature FD Claims After Death
Individual Account
The nominee or legal heirs can request premature FD withdrawal with proper documentation. Timing affects FD interest rates during premature withdrawal.
Joint Account
In case of Either or Survivor without premature closure/ Former or Survivor without premature closure, if the survivor wants to settle, this is possible only for FD(s) with Mode of Operation as Either or Survivor with premature closure mandate/ Former or Survivor with premature closure mandate. In the absence of Joint premature closure mandate from all the FD holders and Mode of Operation as Either or Survivor without premature closure/ Former or Survivor without premature closure mandate, Survivor has to submit Annexure 16 signed by all the legal heirs.
Understanding these processes ensures a smooth transition of FD assets, emphasising the importance of appointing a nominee for financial security.
Adding a Nominee to Your ICICI Bank Account: A Step-by-Step Guide
Step 1: Visit ICICI Bank's Official Website
Open the official ICICI Bank website using your preferred web browser.
Step 2: Log In or Register for Net Banking
Log in with your existing User ID and password. If you're not registered for Net Banking, complete the registration to obtain your login credentials.
Step 3: Navigate to Personal Details
From the main menu, select ‘Overview’ and then choose ‘Personal Details’ from the drop-down menu.
Step 4: Access Nominee Update
On the new page, find the ‘Update’ option under the ‘Nominee Update’ section.
Step 5: Select Account and Add Nominee
Choose your account number and click on 'Add Nominee’. Enter the nominee's name, age and relationship.
Step 6: Confirm Details and Proceed
After filling in the essential details, click ‘Continue’. Confirm all the information on the next page and click ‘Confirm’ to proceed.
Step 7: Successful Nomination
Your nominee will be successfully added within 3 to 4 days after the Bank verifies your application.
Adding a Nominee via the iMobile app:
Step 1: Download iMobile
If not installed, download the app.
Step 2: Register on the App
If not registered, complete the registration process on the app.
Step 3: Open the App and Navigate to the Nominee Section
Access the app, explore the menu and locate the Nominee section.
Step 4: Fill Nominee Data
Enter nominee details, including name, relationship and address, if applicable.
Step 5: Verify and Submit
Double-check all the information for accuracy and submit the form by clicking the designated button.
Step 6: Confirmation Message
You will receive a confirmation message on the screen indicating that your nominee addition request has been submitted for processing.
Adding a Nominee In-Person:
Step 1: Visit the Nearest ICICI Bank Branch
Locate and visit the ICICI Bank Branch closest to your location.
Step 2: Request DA1 Nomination Form
Ask for the DA1 nomination form from the bank representative.
Step 3: Complete Nomination Form
Fill out the nomination form with all required nominee information, including name, relationship, address and account details.
Step 4: Submit Form and Identity Proof
Submit the completed nomination form along with your identity proof to the branch.
Step 5: Document Review
Bank personnel will review your documents and application for accuracy.
Step 6: Nomination Processing
Upon verifying all details, the Bank will process your nominee addition request within 2 to 3 working days.
Securing the Future Today
In the face of loss, the process of claiming FDs after the primary holder's death demands a delicate touch and understanding. Whether in an individual or joint account, having a nominee simplifies the transition, ensuring a smoother settlement process. Appropriate documentation, such as death certificates, KYC compliance and claim forms, becomes paramount.
For individual accounts, the presence or absence of a nominee significantly impacts the ease of the FD maturity or premature withdrawal claims. Joint Accounts offer various survivorship scenarios, each demanding specific documentation to validate the claim. It's crucial to acknowledge the significance of appointing a nominee in all FD Accounts. This simple step can ease potential complexities for legal heirs and streamline the claim process. In times of emotional distress, being financially prepared by understanding these procedures ensures a secure transition of assets.
As we navigate life's uncertainties, the foresight to appoint a nominee will give loved ones the financial security they need during challenging times.