FD continuation after passing away of Primary/Sole holder.

Hello,

'H' & 'W' are senior citizen Husband & Wife.

'H' holds bank FDs jointly (either-or) with 'W'. The maturity dates are couple of years away.

'H' also holds Post Office SCSS account as sole holder with 'W' as Nominee. The maturity date is years away. 

'H' passed away.

1. Can 'W' continue the FDs & SCSS without breaking, with same holding pattern?

2. What about the Tax Liability on interest earned in subsequent years?

3. Is it mandatory to inform bank & PO about the passing away before maturity?

4. I read Banks or Post cannot force Premature Closure due to death of primary/sole holder. Is it correct?

Thank you for your time.

 

 

Replies (3)
Quick Summary
This discussion addresses concerns about continuing Fixed Deposits (FDs) and Post Office Senior Citizen Savings Scheme (SCSS) accounts after the primary holder's death. It explores whether the surviving joint holder can maintain the existing account structure, the tax liabilities on future interest, and the mandatory procedures for informing financial institutions. The advice suggests that while the original holding pattern might change, options exist to transfer ownership, and prompt notification to banks and post offices is recommended for a smooth process.

Show demise certificate to bank and delete the name of demised
automatic all int and TDS will reflect in name of surviving holder
also do not forget to make nominations if not done earlier
Originally posted by : Mahesh Shah
Show demise certificate to bank and delete the name of demisedautomatic all int and TDS will reflect in name of surviving holderalso do not forget to make nominations if not done earlier

Thank you for replying but that does not answer any of my questions.

1. No,W Can't continue FD's with the same holding pattern, but 'w" can change it with the nominee name .

2. This depends on when 'W" change it on with other's name, till the interest will be credited on the name of 'H" & because "H" is not any more, relatives have responsibilities to complete compliance on behalf.

3.'W" has gone with what is the procedure of Bank's & Post offices but this is their own benefit to give the information to such Bank's or Post offices  or whatsoever so , so what will be the next step they will do as quickly as possible .

4. Banks or Post office will give you the correct information about that .

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