New Delhi: Fixed deposits (FD) is the most common investments that people use, especially retired persons. After the death of the FD owner, if the legal heirs want to possess it, they require to know a few things.FDs, have conditions that the depositor must decide when opening it. If the FD is in the name of one person, the bank will examine whether there’s a nominee designated. If the account has nomination details, banks will check the nominee’s identity and transfer the money to him or her.
The nomination means aims to simplify the process for settlement of claims on the death of the account holder. It does not carry away the claims of legal heirs on the estate of the dead. The person named as nominee must act as the guardian of legal heirs. A joint account can have several clauses—”Either or Survivor” or “Anyone or Survivors” or “Former or Survivor” or “Latter or Survivor”.
Either or Survivor: If you and your mate have a joint account with the “Either or Survivor” condition. If one of you dies, the bank will give the closing balance along with interest to the survivor. Even if there is a nomination in the account, the survivor will receive the funds. The nominee obtains access to funds only if both account holders die. In case there is no nomination, the survivor receives the funds. In case both die, the legal heirs of both the depositors will receive the funds.
Anyone or Survivor: To know this, consider that there are more than two joint account holders. The bank will give the final balance and interest to survivors if one or more account holders die. On the death of all depositors, the nominee receives access to funds. If there is no nomination in position, on the death of one or more depositors, the legal heirs of the dead and the survivor will receive funds. On the death of all depositors, the legal heirs of all the depositors will get the funds.
Former or Survivor: It is a joint account where only the previous account holder, the first holder, can withdraw money from the account. Once the former account holder dies, only then the second account holder will be able to withdraw the money. The second account holder will have to do some essential formalities with the bank to begin withdrawing funds, such as presenting the proof of death of the former account holder. On the death of both depositors, the nominee gets access. If there is no nomination and all depositors die, the legal heirs of all depositors will receive the money.
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Latter or Survivor: This is alike the former or survivor clause; the only difference is that the second account holder can manage the account and withdraw the funds. Only when the latter dies, the survivor will get the funds. Here also, on the death of both depositors, the nominee will receive access to funds. And if there is no nominee, the legal heirs of all depositors would obtain the money.
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