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What Happens to Your Fixed Deposit (FD) after death?

By Finserv MARKETS - Aug 12,2019
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What happens to your Fixed Deposit in case of death

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Fixed deposit accounts are a popular investment tool among those who want to live on a regular income after they retire. A life without dependency post-retirement comes to great aid when one is looking forward to travelling. However, the peril of life is such that it is consumed with uncertainty. There are certain uncomfortable situations that may arise, such as the death of the policyholder.

If you have a fixed policy or are looking forward to investing in a fixed deposit account, then you might want to know what happens to the policy in case of the death of the policyholder. To understand that, let us look at the different ways in which one can hold a policy.

Modes of policy holding

There are certain modes by why which pole-owners hold the policy that decides their fate after the death of the policyholder — when and where the money from the FDs goe. Let us look at some of the holding options for fixed deposit policies.

Joint holding with “Anyone or Survivor” option

This method is so convenient that it is one of the most preferred means of holding a policy. This method of holding ensures that the survivors of the policy do not face any trouble when they go on to claim the policy upon its maturity.

What happens to your Fixed Deposit in case of death

For this, if the first holder of the FDs or the joint holder dies, the surviving holder of the policy can inform the company from where the policy was purchased about the death and submit a copy of the death certificate. Once the company receives such a claim, it deletes the name of the deceased deposit holder so that the surviving partner can receive the amount upon its maturity.

Joint holding with “Either or Survivor” option

In this case of holding where the first holder of the fixed deposit policy dies, the survivor gets to claim the amount of deposit upon the maturity of the fixed deposit account, and this can be done according to the policy mentioned above. However, upon the death of the second holder, the first holder has the choice to request the company to delete the name of the deceased and have it replaced by the name of his choice.

Joint holding with “Joint Holding” option

In this case, the proceeds of the FDs are made to the first holder only after both the depositors sign an FDR to denote the same. In case one of the joint depositors dies, the surfing depositor gets the matured amount of the fixed deposit. The process for it, again, is the same as mentioned above.

Single holding with “Nomination” option

Here, the deposit is held in the name of one individual, and upon their death, the policy is transferred to a person of their choice — usually called the nominee(s). However, if the policyholder has a separate will which decides the fate of the policy after it is entrusted to the nominee(s), they, now the trustee(s) of the FD money, will have to honour that.

Single holding without “Nomination” option

In this case, after the death of the single owner of the policy, the heirs will have to go through several complicated processes to make a claim. Often, this is the least preferred way of holding a policy.

Premature payment

It is to be noted that the money from the policy can only be paid at the time of maturity. If the legal heir of the policy requests otherwise, then it is the choice of the policy company to accept or decline the request made by the heir.


If you choose the right kind of fixed deposit policy, it’s going to help you in the long run. A good FD scheme, such as the one on Finserv MARKETS, will provide you with a thorough clarification of the process so that you know where your money is going. Fixed deposits on Finserv MARKETS have easily claim procedure where the nominees in the policy have no trouble while making a claim.

It is a great way to keep you and your family safe in times of distress. Upon its maturity, the fixed deposit money makes for viable post-retirement plans, such as going on a vacation, building a personal library, and a lot of other things.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no-cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522