Answer Book question
The nominee or heirs can either let it run to maturity or close it prematurely; banks typically waive the premature closure penalty on death. Interest continues until the date of payment. Claim with death certificate and nominee/heir documents.
The nominee or heirs can either let it run to maturity or close it prematurely; banks typically waive the premature closure penalty on death. Interest continues until the date of payment. Claim with death certificate and nominee/heir documents.
A ₹5 lakh FD at 7.5 percent with two years left. The family chooses to continue it in the nominee's name rather than break it, since current rates are lower.
Death does not terminate the deposit contract; it transfers the claim. Interest accrues at the contracted rate until payout.
Nominee Rate vs. current rates Need for the money Joint holder status
Breaking a high-rate FD unnecessarily.
Cooperative FDs: check the society's rules; they may differ.
Continue at 7.5 percent rather than reinvest at 6.5 percent.
If the family needs cash immediately, close it; the penalty is usually waived.
Check the rate Decide continue vs. close Claim with documents
What happens to a joint bank account when one person dies? Should my parents keep all their money in fixed deposits?
Family support
RBI guidance on deceased depositors' claims and UDGAM portal · SEBI/AMFI transmission procedures · IRDAI claim guidelines · Kerala Registration and Revenue Department procedures for legal heirship · Indian Succession Act / Hindu Succession Act as applicable Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Start with a Family Asset Inventory. Send us what you know so far. even a name and a bank. and we will help you work through every place worth checking. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Family › After a death · After a death 16
This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.