Fixed Deposit After Death: How to Claim FD
When a fixed deposit holder dies, the FD doesn’t automatically transfer to family members. There’s a specific process to claim the money - and it varies based on whether there’s a nominee, the FD amount, and the bank’s policies.
This guide explains exactly how to claim a deceased person’s fixed deposit in India.
What Happens to FD When Holder Dies?
| Scenario | What Happens |
|---|---|
| FD has nominee | Nominee can claim with death certificate + ID proof |
| FD is joint (Either or Survivor) | Survivor gets automatic access |
| FD is joint (Former or Survivor) | Depends on who died first |
| FD has no nominee | Legal heirs need succession certificate |
| FD under ₹5 lakh, no nominee | Simplified settlement may be possible |
Key point: Nomination doesn’t mean ownership. The nominee is a custodian who must distribute to legal heirs as per succession law or will.
Scenario 1: FD Has a Nominee
This is the simplest scenario.
Documents Required
| Document | Purpose |
|---|---|
| Original death certificate | Proves account holder has passed |
| FD certificate/receipt | Original or duplicate if lost |
| Nominee’s ID proof | Aadhaar, PAN, passport |
| Nominee’s address proof | Utility bill, Aadhaar |
| Bank’s claim form | Varies by bank |
| Cancelled cheque | For transfer to nominee’s account |
Process
Step 1: Inform the Bank
- Visit the branch where FD was opened
- Carry death certificate and FD receipt
- Request the claim form
Step 2: Submit Claim Form
- Fill the bank’s death claim form
- Attach all required documents
- Submit original FD certificate (or indemnity for lost certificate)
Step 3: Bank Verification
- Bank verifies documents
- Checks nomination records
- May cross-verify death certificate
Step 4: Receive Payment
- Bank transfers amount to nominee’s account
- Or issues a demand draft
- Interest calculated till date of claim or maturity (whichever is earlier)
Timeline
| Bank Type | Typical Timeline |
|---|---|
| Public sector banks | 15-30 days |
| Private banks | 7-15 days |
| Small finance banks | 10-20 days |
Note: Timeline assumes all documents are in order. Missing documents cause delays.
Scenario 2: Joint FD (Either or Survivor)
If the FD was held jointly with “Either or Survivor” clause:
What Happens
- Surviving holder gets immediate access
- No succession certificate needed
- FD can be renewed or withdrawn
Documents Required
| Document | Purpose |
|---|---|
| Death certificate | Proves joint holder has passed |
| Surviving holder’s ID | KYC compliance |
| FD certificate | To update records |
| Request letter | To remove deceased name |
Process
- Inform bank of death with certificate
- Request FD to be converted to single name
- Bank updates records
- Surviving holder has full control
Timeline: 3-7 days typically
Scenario 3: Joint FD (Former or Survivor)
This is more complex:
| Who Died | Outcome |
|---|---|
| First holder died | Second holder gets full access |
| Second holder died | First holder continues as normal |
The “Former or Survivor” clause means the first-named person has primary rights during their lifetime. After their death, it transfers to the survivor.
Scenario 4: No Nominee, No Joint Holder
This requires legal documentation.
For FD Under ₹15 Lakh (Commercial Banks)
As per RBI’s 2025 Directions, commercial banks must offer simplified settlement for amounts up to ₹15 lakh (₹5 lakh for co-operative banks) without requiring succession certificate:
Documents Required:
| Document | Purpose |
|---|---|
| Death certificate | Proof of death |
| Legal heir certificate | From tehsildar/SDM |
| Affidavit | Declaring relationship |
| Indemnity bond | Protecting bank from future claims |
| ID proofs of all claimants | KYC requirement |
| Surety (sometimes) | Bank’s risk mitigation |
Process:
- Submit application with all documents
- Bank may require all legal heirs to sign
- Indemnity bond executed on stamp paper
- Bank releases amount after verification
Note: RBI mandates commercial banks to settle claims up to ₹15 lakh without succession certificate (₹5 lakh for co-operative banks). Some banks may allow higher limits at their discretion.
For FD Above Threshold
You’ll need:
| Document | Source |
|---|---|
| Succession Certificate | District Court |
| OR Probate of Will | If will exists |
| OR Letters of Administration | If will exists but executor not named |
Timeline for Succession Certificate: 3-12 months depending on court backlog and complications.
Bank-Specific Processes
State Bank of India (SBI)
Threshold without succession certificate: ₹15 lakh (per RBI 2025 Directions)
Required documents (with nominee):
- Form 15G/15H (for tax)
- Death certificate
- Nominee KYC
- FD receipt
Online option: Some claims can be initiated through YONO app
HDFC Bank
Threshold without succession certificate: ₹15 lakh (per RBI 2025 Directions)
Required documents:
- Death claim form
- Death certificate (notarized copy accepted)
- Nominee’s PAN and Aadhaar
- Cancelled cheque
Note: HDFC requires notarized copies of death certificate
ICICI Bank
Threshold without succession certificate: ₹15 lakh (per RBI 2025 Directions)
Required documents:
- Claim settlement form
- Death certificate
- Nominee KYC
- Original FD advice
Process: Can initiate request online, but physical documents required
Axis Bank
Required documents:
- Prescribed claim form
- Death certificate (original for verification)
- Nominee’s ID and address proof
- FD certificate
Post Office FD (POTD)
Required documents:
- Passbook/certificate
- Death certificate
- Nomination form (SF-1) acknowledgment
- Claimant’s ID proof
Process: Handled at the post office where FD was opened
Interest Calculation After Death
| Scenario | Interest Calculation |
|---|---|
| FD hasn’t matured | Interest till date of payment at contracted rate |
| FD has matured | Interest at savings rate from maturity to payment date |
| Premature closure | May attract penalty (bank-dependent) |
Most banks: Pay interest at contracted rate till date of death, then savings rate thereafter.
Tip: If FD maturity is close, you may want to wait rather than break it prematurely.
TDS on FD After Death
| Scenario | TDS Applicability (FY 2025-26 onwards) |
|---|---|
| Nominee receives FD | TDS deducted if interest > ₹50,000/year (₹1 lakh for seniors) |
| Legal heir claims | Same TDS rules apply |
| Multiple heirs | TDS based on total interest, not individual shares |
Note: TDS limits were increased in Budget 2025-26. Earlier limits were ₹40,000 (₹50,000 for seniors).
Form 15G/15H: Can be submitted by claimant if their income is below taxable limit to avoid TDS.
Note: Interest income from inherited FD is taxable in the hands of the recipient, not the deceased.
What If FD Certificate is Lost?
Process for Duplicate FD Certificate
- File FIR (for amounts above ₹1 lakh typically)
- Submit application to bank with:
- Indemnity bond on stamp paper
- Newspaper advertisement (some banks require)
- Surety if amount is large
- Bank issues duplicate after verification
- Proceed with claim using duplicate
Timeline: 2-4 weeks for duplicate issuance
Cost: Stamp paper for indemnity (₹100-500) + newspaper ad if required
Common Problems & Solutions
Problem 1: Bank Says Nominee is Different
Situation: Bank records show a different nominee than expected
Solution:
- Request copy of nomination form from bank
- If nominee is deceased, submit their death certificate too
- Claim may need succession certificate in this case
Problem 2: Conflicting Claims from Legal Heirs
Situation: Multiple heirs can’t agree on distribution
Solution:
- Bank will not settle until dispute is resolved
- Options: Family settlement deed or court order
- Bank releases only after all claimants agree in writing
Problem 3: FD Was Pledged as Loan Collateral
Situation: FD was used as security for a loan
Solution:
- Loan must be cleared first
- Bank adjusts FD against loan outstanding
- Remaining amount (if any) paid to claimant
Problem 4: NRI Account Holder Died
Situation: FD was in NRE/NRO account
Solution:
- Process is similar but may need additional documents
- Probate from foreign country (if applicable)
- FEMA compliance for repatriation
- Consult bank’s NRI services desk
Problem 5: Account Holder Died Without Anyone’s Knowledge
Situation: Death not reported to bank for months/years
Solution:
- FD continues to earn interest at contracted rate till maturity
- After maturity, converts to savings rate
- Claim process remains the same, just delayed
Checklist for FD Claim
Before Visiting Bank
□ Death certificate obtained (multiple copies)
□ FD certificate/receipt located
□ Nominee's ID documents ready
□ Cancelled cheque of nominee/claimant
□ PAN card (for TDS purposes)
□ Know the FD amount and account number
At the Bank
□ Collect and fill claim form
□ Submit all documents
□ Get acknowledgment receipt
□ Ask for expected timeline
□ Get contact number for follow-up
After Submission
□ Keep acknowledgment safe
□ Follow up after 7-10 days if no response
□ Check if any additional documents needed
□ Verify amount received matches FD + interest
How to Prevent FD Claim Hassles for Your Family
Add Nominee
Visit your bank and add nominee to all FDs. Requirements:
- Nominee’s name, address, age
- Relationship to FD holder
- Nominee’s signature (some banks)
Consider Joint Holding
Joint FD with “Either or Survivor” clause:
- Survivor gets immediate access
- No paperwork delays
- Consider adding spouse or adult child
Keep FD Records Updated
- Maintain a list of all FDs
- Include: Bank, branch, account number, amount, maturity date
- Share this list with family
Store Certificates Safely
- Keep originals in secure but accessible location
- Inform family where they are
- Consider bank locker (but ensure family has access)
Frequently Asked Questions
Can nominee claim FD without other heirs’ consent?
Yes. Bank will release to nominee based on nomination alone. But nominee is legally obligated to share with legal heirs per succession law. If nominee doesn’t share, heirs can take legal action against nominee (not bank).
What if there are multiple FDs with different nominees?
Each FD is treated separately. Each nominee claims their respective FD.
Is there a time limit to claim FD after death?
No strict time limit. FD remains with bank indefinitely. However:
- Interest stops accruing at contracted rate after maturity
- After 10 years of inactivity, may be transferred to RBI’s DEAF (Depositor Education and Awareness Fund)
- Claim process becomes more complex after many years
Can I claim FD from a different branch?
Generally yes, but:
- Claim is processed by home branch (where FD was opened)
- You can submit at any branch for forwarding
- May take longer than claiming at home branch
What happens to auto-renewal FD after death?
- FD continues to renew until claimed
- Each renewal is at prevailing rate
- Claimant can break any time after intimating death
The Bottom Line
Claiming a fixed deposit after death is straightforward if:
- Nomination exists - Nominee claims with death certificate
- Joint holding - Survivor gets automatic access
- Documents are ready - Death certificate, ID proofs, FD certificate
The process becomes complex when:
- No nomination exists (succession certificate needed)
- Multiple heirs have disputes
- FD certificate is lost
Best practice: Add nominee to all FDs and maintain an updated list of all deposits. Your family will thank you.
Your family shouldn’t have to visit five banks to find out what you had. Anshin keeps your financial details organized and shared with the people who matter.