SBI MOD Scheme: The country’s largest bank, State Bank of India, has made a big change for its crores of customers. The bank has implemented a new rule in its special Multi Option Deposit i.e. MOD scheme.
Now to avail the benefit of this scheme, it is necessary to have a minimum balance of Rs 50,000 in your savings account.
Earlier this amount was Rs 35,000. That is, now you will have to keep more money in the account than before, so that you can take advantage of this scheme. This change may be a bit difficult for those who have small or medium balance. But for those who have high balance, this scheme will still give good returns.
What is the meaning of MOD scheme?
If you have more than Rs 50,000 in your savings account, then the excess money is automatically converted into a fixed deposit i.e. FD. This amount goes into FD in small units of Rs 1,000. You get the same interest on this FD that you get on a normal term deposit. This interest is much higher than the interest on a savings account. If the balance in your account decreases, the bank automatically withdraws the money from MOD and puts it in your savings account. That is, you get money easily when you need it. The special thing is that senior citizens also get the benefit of additional interest in this scheme.
Balance above Rs 50,000…
The impact of this change will be different for different customers. Those who had a balance of Rs 35,000 to Rs 50,000 in their account will no longer be able to avail this scheme. This may be a bit of a loss for them, as an easy way to earn money is now closed. But for those who have a balance above Rs 50,000, this scheme is still very beneficial. This scheme offers a good combination of the convenience of a savings account and good returns of an FD.
This change will also have an impact on the banking sector. This move by SBI is part of their strategy to manage deposit costs. The bank has increased this limit to avoid converting small balances into FDs. This may make small customers feel that they have lost a way to earn. But this scheme will remain attractive to those with large accounts. If you want to take advantage of this scheme, then plan to keep a higher balance in your account. Do talk to your financial advisor before investing.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
Add businessleague.in as a Preferred Source
