In case the FD holder dies during the tenure of the FD, the nominee will get the FD proceeds and at the later stage, the will go to the legal heir based on the will or succession.  In case the FD holder dies without a nominee, then the legal heir has the rights to claim the amount. However, they must produce proof of relation which must be obtained from the court. For Joint FD accounts along with the other holder and only one FD holder dies, then the surviving holder can continue the FD in his or her name. In case of the death of both the joint holders, the nominee will get the investment proceeds.