Emergency Withdrawal From An FD account: Fixed Deposits or FD has always been attractive for the common people who look to invest a certain amount of money and will get the interest amount after a few years. The banks have put various attractions in this such as steady interest flow, hassle-free operations, and etc.
If you notice, many of the FDs are have the following options for the investor such as Self which means Sole Operator/ Either or Survivor/ Former or Survivor/ Anyone Survivor/ Power of Attorney/Jointly/ Minor Account operated by Guardian. If all of them are fine then it’s alright.
But what happens when someone who is a joint holder in the FD from the household gets into an accident or is hospitalized? The family naturally would require money and they would look to break the FD prematurely but is this possible? Generally, Banks require a certificate from the customer to discharge the money or the customer may take a loan if not to break the FD.
And if a situation like this arises and the FD is held jointly is any of the above-mentioned ways ( except for Sole operator ) then the customer would not be entitled to withdraw the money. And this might make things tricky for the customer as the medical expenses will pile up. And of course, this rule will be applicable if the joint holder has gone into a coma or is in a serious state.
What Can Be Done In This Situation?
This situation can happen to anyone and thus here are some of the steps one can consider doing. Firstly all the joint FD holders should change their existing operational activity as ‘Anyone of the Joint holders.’ Why? Because in case of a premature withdrawal anyone of the joint holders can take out the money.
They have to sign the certificate and the withdrawal will be in process. The certificate also ensures that the customer pledges the FD certificate and can meet the emergency by raising funds.
You might have one question that a similar type of section is there which says ‘Either or Survivor’ which suggests the fact that they know that one is going to outlive the other some point of time. But what happens if both of them are in a state of Coma where they are not dead technically.
Well, generally FDs are kept untill maturity and the above-mentioned scenarios don’t arise but even if they do, the family generally arranges for funds from elsewhere. And due to this, there have been many cases of unclaimed FDs in India. The government has decided that the banks should upload the list of unclaimed FDs which are inactive for 10years on their websites. It should contain the account holder’s name and address so that finding it can be easy.