While many of you who do not maintain a current account i.e. primarily held by businesses or sole proprietorship concerns, you may not be knowing that the account does not fetches interest earnings similar to savings account. But, with the Multi Option deposit scheme with SBI, if you link any of the savings account or current account, you can earn interest as per the applicable rates at the time of initial deposit amount.
Here are the few important features of the deposit scheme:
The scheme works unlike regular deposits wherein the entire deposit amount can be liquidated at any time around with penalty charges But here in the scheme, you will be able to withdraw in multiples of Rs. 1000 as per your financial requirement and the remaining balance amount in the deposit scheme shall continue to earn you interest.
So, if you link your current account with SBI to this deposit scheme, from wherein you are allowed to make frequent withdrawals, the balance amount will help you earn interest.
How to open MODS account with SBI?
You can visit nearest SBI branch or open the account via OnlineSBI.
The account can be opened with a minimum of Rs. 10,000 and in multiples of Rs. 1000. Further there is no maximum limit.
Interest rate on this account is at par with the other deposit rates such as between 5% or below 8%.
Tenure for such an account is 1 year minimum and maximum 5 years.
Premature withdrawal from the account are allowed and for this rules related to usual TDR or STDR are applicable. Also, in respect of the linked savings account, customer has to comply with the MAB rules.
So, if you intend to earn interest on savings or current account at par with deposits then MODS is a good option for you to look at.