Fixed deposit receipt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2017 RESPECTED SIR,
A FDR WAS PREPARED ON 01/04/2017 FOR 5 YEARS IN THE JOINT NAME OF A AND B EITHER OR SURVIVOR. THE MATURITY DATE IS 01/04/2022. AT THAT TIME A WAS SENIOR CITIZEN. ON 28/04/2017 A EXPIRED.
SIR, PLEASE CLEAR MY DOUBT WHETHER B SHOULD WAIT FOR DATE OF MATURITY OR SHOULD TAKE PRE -MATURE PAYMENT OF THE SAID FDR.
WHAT ARE THE LEGAL CONSEQUENCES REGARDING RATE OF INTEREST OF SENIOR CITIZEN
WITH REGARDS

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2017 SIR PLEASE REPLYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2017 SIR PLEASE REPLYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 In the situation described, where a Fixed Deposit Receipt (FDR) was prepared on 01/04/2017 for 5 years in the joint names of A and B as either or survivor, and A, who was a senior citizen at the time of deposit, expired on 28/04/2017, here's how it typically works:

1. **Survivorship Clause:**
- The FDR is held jointly by A and B with the survivorship clause "either or survivor." This means that upon the death of A, the ownership of the FDR automatically passes to B.

2. **Options for B:**
- B has the option to:
a) Wait until the maturity date of the FDR (01/04/2022) and then claim the maturity amount, or
b) Opt for premature withdrawal of the FDR after A's death.

3. **Pre-mature Withdrawal:**
- Since A has expired, B can choose to prematurely withdraw the FDR. Typically, banks allow premature withdrawal in such cases upon submission of necessary documents (such as death certificate of A) and as per their rules regarding premature withdrawal.

4. **Interest Rate for Senior Citizens:**
- At the time of deposit, if A was a senior citizen, senior citizen rates of interest would usually apply for the entire tenure of the FDR (5 years in this case), even if A passes away during the tenure. This is because the interest rate is determined at the time of deposit based on the age of the senior citizen.

5. **Legal Consequences:**
- Legally, upon the death of A, B becomes the sole owner of the FDR due to the survivorship clause. B can choose to continue with the FDR until maturity or opt for premature withdrawal.
- The interest rate applicable to the FDR remains as per the terms agreed at the time of deposit, which includes the senior citizen rate for the full tenure of the deposit.

6. **Procedure for Premature Withdrawal:**
- B should contact the bank where the FDR is held and provide the necessary documents (death certificate of A, identification documents of B, and any other documents required by the bank).
- The bank will then process the premature withdrawal request and provide the applicable amount as per their premature withdrawal rules.

In conclusion, B has the choice to either wait until the maturity date of the FDR or opt for premature withdrawal after A's death. The interest rate applicable would be as per the senior citizen rate agreed upon at the time of deposit, valid for the entire tenure of the FDR.

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