MOD accounts in Banks – Multi Option Deposit
MOD: MOD stands for Multi Option Deposit Account. It is a combination of saving account and deposit account, this is for fixed period time and you can release your funds when you want. And the benefit is that you will get maximum interest rates like in FD or Fixed deposit and your money will be in liquid form.
MOD account facility is available in most of the Indian banks like SBI (State Bank of India), PNB (Punjab National Bank), HDFC etc.
Multi Option Deposit accounts are only applicable in Indian banks not worldwide. Also, there may be few more countries other than India who are using this same account type.
Example: Suppose you have 1.5 lakh rupees in your account and you transfer 1 lakh in your MOD or Multi Option Deposit account and 50,000 left in your saving account. And you will get FD interest rates on your 1 lakh which you transfer in your MOD account and get normal saving account interest rates on your 50,000 rupees in your saving account.
Advantages of MOD account
The top most benefit of MOD account is you will get higher interest rates on your money as FD rates which are offered by your respective Bank.
Refer in above example, if you need 60,000 rupees at a sudden, then need not to worry because MOD account is completely in liquid form that you can get money from your MOD account but you need to be aware about that first your saving account money is needed to be empty and then money from MOD account will be withdrawal like you already have 50,000 in your saving account so when you go to bank to withdrawal for 60,000 rupees then first your saving account 50,000 rupees will be deducted and then 10,000 rupees come from MOD account.
And after that you will get 90,000 rupees left in your MOD account. After finishing of work when you deposit money back to your saving account like you deposit 60,000 rupees back then 10,000 rupees which was deducted last time while withdrawing money will be automatically added to your MOD account and 50,000 rupees left in your saving account.