It's usually seen, when something happens to the Fixed Deposit Holder before the maturity of the fixed deposit then their family members face difficulties to withdraw the money from FD. In such a situation, the family members must have knowledge for claiming the money.
Here are a few tips that can help people to avoid these situations
Use Nominee - Assigning Nominees is the best and simplest option to avoid these troubles in case if something happens to the FD Holder.
Joint Holding – In joint holding, if the first holder dies, then after the maturity nominee can claim for the money by providing a death certificate of first holder. And if the second holder dies, then first holder gets all the rights to choose the new second holder.
Taxation – While giving the maturity money to the last nominee no tax will be reduced. Although, the interest amount will be added to the income of receiver and they will have to pay tax as per their tax levels.
Pay Off Before Time- It's important to know that the pay off will be given only after the maturity of FD. But, the nominee or legal heir can request for the pay off before the maturity. It will be their decision whether they accept the request or not.
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