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When does a deposit become unclaimed? When you do not make any transaction with the deposit amount kept in the bank for 10 years or more, it becomes unclaimed. Unclaimed deposits include current and savings accounts as well as fixed deposits.
The unclaimed deposits are transferred to the Depositor Education and Awareness (DEA) Fund, where it is invested in instruments such as government securities. However, once the money becomes unclaimed, you have to go through a lot of trouble to prove that it is yours. Take these precautionary steps to prevent this from happening.
Adding nomination-
To protect deposits from being unclaimed, consider adding nominees to your bank accounts. It is very important to add nomination so that after your death your money is easily transferred to that person. This allows immediate access to beneficiaries without unnecessary complications.
Sharing details with family-
Tell your family members openly about your bank account and deposits. This transparency will help your loved ones manage these accounts effectively in unexpected circumstances. By doing this you can save your hard-earned money from going unclaimed. When people have all the details, they can claim the money.
KYC update-
Update your KYC details with the bank regularly. In addition to meeting regulatory requirements, this prudential measure ensures accurate and up-to-date information. Facilitates seamless communication between you or your nominees and the Bank and protects your deposits from being unclaimed.
Closing additional accounts-
Review your accounts periodically and close unnecessary accounts to reduce the risk of funds not being claimed. Consolidating funds across a few active accounts simplifies financial management and reduces the chances of any account falling into the unclaimed category.
Keeping FD slips safe-
Keep the FD slip safe while investing in Fixed Deposit (FD). These documents serve as proof of your investment and are important for the nominated individuals or beneficiaries to claim the money. If there is a need to claim an FD, keeping family members informed about the whereabouts of these slips streamlines the process.