Recovery Of Fixed Deposits

Fixed deposits (FDs) have long been a favoured investment option for individuals seeking safe and stable returns. However, what happens when these FDs go unclaimed? In this article, we delve into the world of unclaimed FDs, exploring the reasons behind their abandonment, the consequences of neglect, and the steps to reclaim your hard-earned money.

When does an FD go unclaimed?
An FD becomes unclaimed when the depositor fails to withdraw the money even after maturity. This can occur for various reasons, including:

• The depositor’s demise
• A change of address
• The misplacement of the Fixed Deposit Receipt (FDR)
• Lack of awareness of the maturity date
• What happens to unclaimed FDs?

  If an FD remains unclaimed for 10 years or more after maturity, banks are mandated to transfer the funds to the Depositor Education and Awareness Fund (DEAF) within three months.

How to search for unclaimed FDs?

Locating unclaimed FDs can be easier than you think. Here are two effective methods:

• Contact your bank: Reach out to your bank, providing them with your account number and personal details. They can inform you if they have any unclaimed FDs associated with your name.
• Use the UDGAM website: The Reserve Bank of India (RBI) has launched the Unclaimed Deposits Gateway to Access InforMation (UDGAM) portal. It hosts a database of unclaimed deposits. Utilise this website to search for unclaimed FDs by putting in your name, PAN number, account number, or address.

The process of claiming unclaimed FDs
To reclaim an unclaimed FD, follow these steps:

• Contact the bank where the FD is held.
• Provide proof of identity and ownership of the FD, which may include your
  PAN card, Aadhaar card, and/or a copy of the FD receipt.
• The bank will verify your Know Your Customer (KYC) information.
  Upon successful verification, the bank will process your claim and release the unclaimed deposit to your account.

How to avoid your FDs remaining unclaimed?

• Regularly review your bank statements: This will help you identify any unclaimed FDs in your name.
• Update your contact details with your bank: This will ensure that you receive timely notifications about your FD maturity dates.
• Consider opening a joint FD account with your spouse or another trusted family member: This can help prevent your FD from going unclaimed in case of your demise.

The importance of appointing a nominee Appointing a nominee for your FD account is a critical step in financial planning. A nominee is the person entitled to receive the money in your FD account in case of your demise. While the nominee does not become the absolute owner, this designation ensures that the bank transfers the FD amount to the nominee promptly.

However, it’s important to note that legal heirs may still make claims against the nominee, emphasising the need for clarity in estate planning.

To conclude
Unclaimed FDs are a financial puzzle that many individuals may face. However, with right knowledge and proactive measures, you can prevent your hard-earned money from going unclaimed and ensure a smooth transition of wealth to your loved ones. By appointing a nominee and staying informed about your financial assets, you can unlock the secrets of unclaimed FDs and safeguard your financial future.