Fixed deposits are a trusted savings choice for many Indian families because they are simple and predictable. However, complications can arise when an FD holder passes away without leaving a will. In such situations, withdrawing money is not as straightforward as approaching the bank. The process involves legal checks, documentation, and time. Knowing the basics can help families manage the situation with less stress.
What it means when there is no will
When a person passes away without a will, it is legally called dying intestate. This means there are no written instructions on how their assets should be distributed. Banks cannot release FD proceeds based on verbal requests or family relationships alone. Instead, they must follow succession laws applicable to the deceased. These laws decide who the legal heirs are and how the money should be divided among them.
Role of a succession certificate
In most cases without a will, banks ask for a succession certificate. This is a legal document issued by a civil court that confirms who the rightful heirs are and authorises them to claim financial assets like fixed deposits. To obtain it, heirs must file a petition with details of the deceased, family members, and assets. The court verifies the information before issuing the certificate. While the process can take time, it is often necessary for the bank to release the funds.
How nomination helps but has limits
If the FD has a nominee, the process becomes simpler. A nominee is registered with the bank to receive the FD amount after the depositor’s death. Banks usually allow the nominee to withdraw the funds after submitting documents such as the death certificate and proof of identity. However, a nomination does not replace a will. If other legal heirs raise objections, the bank may still require additional legal documents before releasing the money.
Documents banks usually require
Banks typically ask for the FD receipt or account details, the depositor’s death certificate, and identity and address proof of the claimant. If there is no nominee, a succession certificate or similar legal document is required. In some cases, affidavits or indemnity bonds from heirs may also be requested. While exact requirements vary, the goal is always to confirm the claimant’s legal right to the funds.
Why delays happen and how to reduce them
Delays usually occur because of court procedures and incomplete paperwork. Families can reduce delays by keeping financial records organised, ensuring documents are accurate, and checking bank requirements early. Prompt legal advice can also help speed up the process.
Withdrawing a fixed deposit without a will is possible, but it involves extra steps. Clear documentation and legal verification are essential. While nomination helps, a will offer the smoothest path for asset transfer. Planning ahead can save families time, effort, and emotional strain later.
(The author is Associate Analyst, Communications, BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
