Please tell me what happens when a fixed deposit holder dies before maturity?
It’s an unfortunate event. While you’re grieving, you also have to look out for these things. Well, what happens to fixed deposit after death is that the nominee has to fill out a claim form.
Let me share details with you. When my grandfather passed away, my father and I visited the bank. They asked for a few documents including:
- Death certificate of FD account holder
- Nominee ID proof
- Filled out FD withdrawal claim form
Once you submit these documents and details, the bank verifies the claims and upon successful verification, the amount is disbursed in the nominee account.
I think another question that arises is, ‘what happens when a fixed deposit holder dies before maturity?’
Again, the process to claim FD remains the same, the interest till the date of death is added to the total amount and is credited in the nominee’s bank account. There are no penalties of premature withdrawal in such a case.
I hope this is helpful.