If you are having surplus amount in your SB account of SBI and thinking about how save that in a better way (for better returns)?
There are FD/RD options in the bank to invest the money in a better way.
But those options mean your money will be put on hold for a certain period of time.
And, if you need to use your money before maturity period, charges for premature closure will be applicable on certain conditions.
Do you want your money in your Savings Account available to you at any time? AND Do you also need a higher interest rate than Savings Account interest (like Deposit account interest rate)?
You have a better way in SBI and it is a useful benefit for the customers to use excess funds in their account.
Savings Plus Account
It is a unique product offered only for SBI customers to transfer their surplus amount above threshold limit in the Savings bank Account automatically to “Multi-option Deposits” (Term deposit accounts) (MOD) in multiples of INR 1000/-.
This feature provides an automatic facility to the customers to invest their excess fund in SB account in term deposits with a higher interest rate.
What are the minimum and maximum threshold limit and minimum amount to transfer to MOD?
The minimum threshold limit to transfer the fund from your Savings Account is INR 25000/- and there is no limit for the maximum threshold amount.
And, the minimum money to transfer is INR 10000/- in multiples of INR 1000/ at one instance.
How does it work?
In your account, the balance available is above the threshold limit as decided by the customers (Min INR 25000) will be transferred to MOD with the Term deposits interest rate.
The minimum amount for transfer to MOD will be INR 10000 in units of INR 1000/each.
When you attempt a cheque payment, withdrawal, or execute a Standing instruction, when there is a shortfall in your account the MOD will automatically broken down by the system and credited back to your SB account to fill the shortfall for payment.
If you have INR 80000/- in your SB account and if you have applied for MOD with the threshold limit of INR 25000/-, the system will automatically transfer INR 55000/- to MOD as a Term Deposit. The balance amount will be available in your SB account.
If you come up with the cheque of INR 70000/- to withdraw the amount, the MOD will automatically break down to meet the shortfall in the SB account for the payment of cheque.
Breakdown of MOD is your choice
Whenever your account has the amount above the threshold limit, then it will be converted into a term deposit.
If you are having more than one MOD account, for breakdown to make payment, you have to specify the breakdown choice whether the first deposit should be closed or last deposit should be by making the choice of “First in First out” or “Last in First out” while applying for MOD.
In the absence of any choice, the “Last in First out” principle will be applied automatically.
When there’s a breakdown of MOD, the amount with interest will be credited to the savings bank account.
Is there any time period to maintain MOD?
Yes, the period of MOD will range from one to five years.
How can I get to know the MOD balance?
Passbook can be issued for the MOD account. Also in your SB account passbook, the MOD balance will be shown near Current/Available balance.
Some other information on MOD
- TDS applicable for interest just like Term deposits
- Nomination facility is also available
- It can be a single, or joint account.
- Minimum balance of INR 3000/- should be maintained in MOD irrespective of the category of the branch.
So avail this awesome feature that you can maintain the money in savings bank account itself and get a higher interest rate for the surplus money.
That is, by opening a Savings Plus Account!