The country's largest lender, State Bank of India (SBI), is offering its customers savings plus account. It is a kind of savings bank account linked to Multi Option Deposit Scheme (MODS). Here, surplus fund above a threshold limit from the savings bank account is transferred automatically to term deposits opened in multiples of Rs 1,000.
Eligibility of savings plus account:
Any person is eligible to open a savings bank account. As per the location of the branch, the monthly average balance (MAB) requirement in a metro is Rs 3,000, urban is Rs 3,000, semi-urban Rs 2,000 and rural Rs 1,000. Also, the mode of operation of this account can be singly, jointly or with either or survivor, former or survivor, anyone or survivor, etc.
It is to be noted that, customers with Rs 1 lakh or more in their accounts earn an interest of 3.25 per cent, and those with less than Rs 1 lakh in their savings bank accounts earn interest at the rate of 3.50 per cent. According to SBI, “The minimum threshold limit for transfer to MOD is Rs 35,000 and the minimum amount that can be transferred to MOD is Rs 10,000 in multiples of Rs 1,000 at one instance.
Time Duration:
The period of the deposit will range from one to five years and facility of loan against MOD deposit is available. However, all the facilities offered to savings bank account holders like ATM card, mobile banking, Internet banking, SMS alerts are available to the customers of this account.
Savings Bank linked to MOD account, for the auto sweep, for the issue of term deposits and unitized break-up facilities. Any surplus funds retaining a minimum of Rs 25,000 in savings bank (to be set up by the customer) will be transferred as term deposit with a minimum of Rs 10,000 and in multiple of Rs 1,000 at just one instance.
Though, if sufficient balance in MOD is not available, the customer will be liable to pay charges on non-maintenance of average monthly balance (AMB) as applicable to the geographical location where the account is maintained.
But, the name and mode of operation and branch of newly generated MOD account will be same as in debit account from which the MOD account is funded. Adding to it, deposits made in this account is completely liquid, and the sum of the available balance in the transactional account and MOD balance can be used for issuing cheques or withdrawal or making any other payment.
