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To continue or close the bank account of the next of kin after the death?

Do not rush to close the bank account of the deceased because it will have some income such as family pension, dividend, interest which will be useful for the family.




COVID-19 changed our world. Those things about which we did not even think far to speak, now it has become necessary to know about them. Should the bank account be closed as soon as possible after the death of a family member? Harsh Rungta of Fee-only Investment Advisor LLP says that do not rush to close the bank account of the deceased. Because there will be some income in it such as family pension, dividend, interest etc. which will be useful for the family. After closing it and then instead of opening the account afresh, make this account an estate account by applying to the bank. It will be considered as ‘Estate of Mr or Mrs…’. The flow of money will also continue and you will also avoid the affair of closing the account.

What to do to close the bank account?

If the bank account is to be closed, then the notarized death certificate of the deceased person will have to be given. If there is a nominee then the nominee will get all the money who will hand it over to the successor. But if there is no nominee, then the family member who will be the successor will have to present documents related to the relationship between himself and the deceased person in the bank along with the death certificate and the bank can also ask for indemnity bond.

Required to inform bank

RBI has asked banks to keep a soft stance in such matters.

There is no fixed time limit to inform the bank. When the family is mentally ready, then this work can be done. According to the instructions of RBI, the bank will have to complete the withdrawal request within 15 days.

What will happen to fixed deposits and bank lockers?

Every bank has its own rules. Some banks allow the nominee to hold the FD till the full term of maturity. If there is a senior citizen’s FD in which more interest is being received, then at what rate will the person continuing to get the interest, it will be decided according to the rules of that bank. Similarly, bank lockers will also depend on what is written in the Survivorship clause of your account. It is clear in the ‘Ether Or Survivor’ account that whoever survives will get it. The role of the nominee and successor will remain the same as in the case of a bank account.

Take care of joint account

According to Harsh Rungta, the joint account holders feel that if one is not there then the other will automatically run this account. This is possible only when this is written in the Survivorship clause, otherwise the joint holder also becomes difficult. Therefore it is very important that whenever you open a bank account, fill the Nominee and Survivorship clause carefully.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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