Aman Khanna
The popularity of an FD as an instrument of investment is well-known. After all, fixed deposits combine the idea of savings and liquidity in one investment vehicle. This, in turn, makes a fixed deposit easily accessible in cases of financial contingencies.
But what if, these very deposits lie unclaimed post-maturity?
One might pose a question about the possibility of such an occurrence. But such instances are highly possible only when:
- The investor exits the country.
- Death of the investor and absence of nomination on the FD investment made.
Also, very rarely, the investor might as well forget about his investment that has been left untouched in a long time. Quite significantly, this problem of unclaimed deposits also happens when investment portfolios become too cumbersome for investors to manage. Inconvenience in management arises due to multiple small investments made in different schemes with varying FD interest rates.
What happens if this amount does not receive claims?
In cases where no one comes to claim the amount even after a considerable period of time, the easiest way out for financing institutions is to transfer the amount over to a nominee. This method is relevant only when the investors are no more, and he/she has duly nominated someone to claim the investment in the event of his/her death.
What happens if investors don’t have a nomination for their investments?
Under such circumstances, financing institutions can resort to two alternatives.
- They could track down legal heirs of investors and inform them accordingly. Following which, these financial institutions could take appropriate steps to hand them their dues. These amounts are inclusive of interest amounts at FD interest rates pertaining to the time of transferring these investments.
- In case, the depositor is alive; these companies might opt to reinvest the money at ongoing FD interest rates, after informing the investor accordingly.
How do legal heirs claim their unclaimed amounts?
Where investors are no more and legal heirs have claimed outstanding deposit amounts, legal heirs have to conform to the following documentary requirements:
- Submission of the investors’ death certificates.
- Submission of KYC documents for validating their respective identities.
Some might ask, what if the investor is still alive?
After the institution has duly informed customers, they must complete required documentation procedures as determined by the institution. In addition to that, investors must submit KYC documents as necessary.
Moreover, the investor must possess the FD receipts that specify the amount of initial investment, and relevant FD interest rates. This receipt must be produced at the time of making a claim.
As mentioned earlier, investors might as well opt for reinvesting the amount in consultation with the company. The company, in turn, re-invests the amount at prevailing FD interest rates.
Information to ponder on –
However, the procedure for claiming these unclaimed deposits can take a considerable period of time, owing to the company’s due diligence process. Therefore, it is always advisable for investors to keep track of their investments.
When investors are duly aware and updated of their investment schedules, it becomes easy for them to monitor their returns as well. For example, while pre-planning a particular investment in a fixed deposit, one could always use FD calculators.
FD calculators allow investors to have a clear preview of interest and maturity amounts accruing to them after they actually invest. Also, experts advise investors to keep nominations for their investments, at the time of making an investment.
Another viable alternative is to keep a joint holder. In the event of the death of one investor, the joint holder could always take the amount accrued.
For smooth, convenient investments, one could always opt for a financing house bearing semblance to Bajaj Finserv. Such financing institutions provide investments at fairly high FD interest rates compared to banks. Plus, the process of online application not only saves time but also provides the convenience of online nomination.
Thus, in the presence of institutions one need not worry about his/her investments thereof. Such institutions combine safety with convenience; thereby, investors would find these institutions worthy of their investments.
