To open a MODS account, you can contact your nearest branch or you can start it online through SBI. (File Photo)
If you deposit your money in the bank in savings accounts to keep it as savings, then it gets liquidity but interest is less. Interest is available on term deposits at a higher rate than the savings account, but there is no liquidity in it, that is, you can withdraw money only after a fixed period on making term deposits. In such a situation, the Multi Option Deposit Scheme (MODS) of State Bank of India (SBI) is a better option.
MODS is like a term deposit which is linked to savings or current account. To withdraw money from normal term deposits, it has to be completely closed but you can withdraw money from MODS account in multiples of 1 thousand rupees according to your need. After withdrawing money, the money remaining in the account will continue to receive interest at the rate of term deposits. This interest rate is fixed for a time period set by the bank. To open a MODS account, you can contact your nearest branch or you can start it online through SBI.
Feature of MODS
- You can deposit in this account for at least 1 year and for a maximum of 5 years.
- An account can be opened under MODS for a minimum of Rs 10 thousand and after that a deposit can be made in multiples of 1 thousand rupees. The maximum deposit limit has not been set.
- Interest on deposits in this account is available in the same way as term deposits. Senior citizens will get more interest at the rate of 0.5 per cent.
- Tax deduction at source.
- You can also make someone a nominee.
- Facility to avail loan.
- If you break the MOD in the middle of the stipulated time, then the amount of money which has been kept in the account will have to be paid along with penalty on the interest applicable for that period. The basic interest rate will be applicable on the remaining amount.
- You can transfer this account from one branch to another.
- If there is a minimum balance of 35 thousand rupees in a linked savings account or current account, then auto swipe will be (10 thousand rupees).
- If the option of auto-sweep is selected then the nominee in the savings or current account will also remain the nominee of the MOD account. However, if you want to change the nominee of any account in these two, then it can be done by filling Form DA-1.
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Necessary to have a minimum balance in the linked account
Minimum balance requirement in the account linked to the MoD – 3 thousand rupees, irrespective of the location of the bank branch. If such a situation comes that this amount is reduced then the system itself will break the MOD and maintain the minimum amount level. . If there is not enough amount in the MOD that the level of minimum deposit in the linked account cannot be maintained, then the customer will have to pay a penalty. The penalty amount will be determined on the basis of the branch location.