What Happens to the Unclaimed Investments? How to Claim Them?

Financially smart individuals make investments all the time. However, sometimes they forget about these, which is why these are left with the concerned institutions. So, what happens to this unclaimed money?

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Well, the actual process varies from one type of investment to another.

Mutual Funds

Most mutual fund houses release dividends to the investors on an ongoing basis. However, if an investor closes the bank account that’s linked to their investment and forget to update about the same to the fund house, then the dividends remain with them unclaimed.

If the investor doesn’t claim the dividends even after 3 months, then the mutual fund house reinvests the same into the markets.

The mutual fund house can invest the unclaimed dividends up to 3 years. After this period is over, they have to transfer the earnings from these to the Investor Education Fund.

How to claim unclaimed mutual fund dividends?

An investor can easily claim the unclaimed mutual fund dividends by contacting the fund house with the folio number of the concerned investment.

Banks

Bank fixed deposits that are unoperated/unclaimed for 10 years or more are required to be transferred to the “Depositor Education and Awareness Fund Scheme” as per the RBI guidelines.

How to claim unclaimed bank fixed deposits?

To claim the deposits, the account owner can approach the bank with the relevant documents such as passbook, FD receipt, etc.

Post Office

Unclaimed post office accounts and deposits earn interest only for a period of 2 years post maturity.

How to claim unclaimed bank fixed deposits?

The account owner can approach the post office where the account was opened along with the passbook to claim the money.

Provident Fund

When a person switches jobs, they have the option to withdraw or transfer their EPF balance. However, if they decide to do nothing, then the unclaimed account earns interest for a period of 3 years. After this period is over, the funds could be transferred to the Senior Citizens’ Welfare Fund.

How to claim unclaimed EPF balance?

The account owner has to submit 3 copies of the EPF transfer form to their current employer. One of these is sent to the old employer, the second to the EPF commissioner, and the third stays with the current employer.