FD Claim: Discovering old FD receipts or passbooks at home often leads to confusion regarding who is entitled to the money—especially when the grandparents are no longer alive. In such situations, having accurate information and the necessary documents is crucial.

FD Claim: Often, while cleaning the house or organizing closets, we unexpectedly stumble upon old FD receipts or passbooks. Initially, one is unsure whether the funds are still active; subsequently, the question arises: who is ultimately entitled to receive this money now? This confusion is particularly heightened when the grandparents have passed away. Grandchildren, in particular, often find themselves in a quandary, wondering whether they, too, have a legal claim to these funds. In such instances, possessing the correct information is of paramount importance.

Can Grandchildren Claim an FD?

People often assume that only the deceased's children (sons and daughters) are entitled to these funds; however, the reality is slightly different. If the grandparents were Hindu, the provisions of the Hindu Succession Act, 1956, apply to their estate.

According to this law:

Class I heirs (the spouse, sons, daughters, and mother) are entitled to an equal share of the estate.

Furthermore, if a son or daughter has predeceased the deceased, their children—i.e., the grandchildren—also acquire the status of Class I heirs.

Consequently, they, too, are entitled to an equal share of the inheritance.

What Happens if There is a Nominee for the FD?

In many cases, individuals designate a nominee for their FDs in advance; however, it is vital to understand a crucial distinction here.

A nominee is not the legal owner of the funds, but rather acts solely as a trustee.

This implies that while the bank releases the funds to the nominee,

the nominee is subsequently obligated to distribute that amount among the actual legal heirs.

Typically, the bank requires the nominee to submit the following documents:

Death Certificate

Affidavit

Indemnity Bond

KYC Documents

What to Do if There is No Nominee?

However, even if an FD has no designated nominee—or if the nominee has passed away—the funds are not forfeited. In such instances, the legal heirs can claim the money directly from the bank.

This process simply requires a few essential documents, such as:

The depositor's death certificate

A Succession Certificate or Legal Heir Certificate

An Affidavit and an Indemnity Bond

And KYC documents for all the legal heirs

Why the Delay?

Many people assume that banks intentionally delay the process; however, in most cases, the delay stems from the incomplete fulfillment of necessary paperwork. Banks disburse funds strictly in accordance with banking regulations—not on the basis of sentiment.

Important Considerations for Families

According to legal experts, potential complications can be avoided if, in good time:

A simple Will is executed.

Proper nominations are established.

Details regarding investments are shared with the family.