Dada Dadi Bank FD Accounts: How much right do grandchildren have in bank FD, know how they will get money without a nominee?

Business Desk –Dada Dadi Bank FD Accounts: Even today, most people rely on fixed deposits (FD) to invest their money safely. Bank FDs are especially popular among senior citizens as they offer higher interest rates and returns than those available to the general public.

Grandparents often open FDs during their lifetime. However, family members often become aware of these investments much later, after they pass away. The situation becomes even more difficult when there is no valid will, or if the FD is not specifically mentioned in the will. So, in such a situation, how can the money deposited in these FDs be claimed? Today, we will explain exactly this to you.

What does the law say in such situations?

Under the Hindu Succession Act, 1956, class heirs get equal shares in the property. This category includes sons, daughters and spouses. Children of a deceased son or daughter are also included. In other words, if your parents are no longer alive, you are entitled to claim a share of their inheritance.

In such situations, grandchildren are often unsure whether they have any legal right to this money or not. However, according to the law, grandchildren have full legal rights to inherit if their parents have died.

Nominee in FD

Generally a nominee is decided in bank FD. However, it is important to note that the nominee is not the legal owner of the money. The nominee acts only as a trustee, whose sole responsibility is to receive the money and distribute it among the rightful legal heirs. Although the money is given to the nominee, he cannot retain the money for his personal use.

In case of death of the account holder provided a nominee has been decided. The nominee has to submit some important documents to the bank to claim the money. Once the verification is done, the bank gives the money to the nominee. It is the responsibility of the nominee to distribute that money among the legal heirs.

On the contrary, if no nominee has been decided for the FD, then all the legal heirs will have to approach the bank together. They are required to submit documentary evidence to prove their legal claim on the inheritance, after which the bank will release the funds.