SBI Mod question

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SBI MOD is a facility to keep money in a fd like account but one can use the money without any penalty charges and interest is given on whatever the amount is taken out of this fd. What I have noticed in my and in other people’s account that the matured amount is always less. My friend used his mod today for some payment. Now this is 52000 at 3.90% for 83 days. The interest is compounded quarterly. No TDS has been deducted in this. Can someone explain how they reached to this interest amount? The difference amount will keep on increasing as per the principal amount.

https://imgur.com/a/X...qL

https://imgur.com/a/9...BQ

In SBI online banking, where can we access closed MOD accounts?

@andromeda @guest_999

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It is little difficult for me to process your number, but can tell you what usually happens or how it works.
The facility works just like FD. The amount is considered as a deposit for one year at whatever the ROI that was on records. When one attempts to withdraw the amount partially, say X after Y days, The interest rate for Y days will be different than one year. They tread X amount of deposit for 1 year withdrawn before the actual date. So as per the rules, the X amount will be paid interest as per Y days slab with a penalty. That may be the effective ROI you have arrived at,

Correct me if I goofed up anywhere

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Never believe any “FD with zero penalty for anytime withdrawal”. One way or the other, premature/sooner withdrawal will result in less interest for any FD like deposit.

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andromeda wrote:

It is little difficult for me to process your number, but can tell you what usually happens or how it works.
The facility works just like FD. The amount is considered as a deposit for one year at whatever the ROI that was on records. When one attempts to withdraw the amount partially, say X after Y days, The interest rate for Y days will be different than one year. They tread X amount of deposit for 1 year withdrawn before the actual date. So as per the rules, the X amount will be paid interest as per Y days slab with a penalty. That may be the effective ROI you have arrived at,

Correct me if I goofed up anywhere

I lost you after Y. BTW there is no penalty in MOD account.

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guest_999 wrote:

Never believe any “FD with zero penalty for anytime withdrawal”. One way or the other, premature/sooner withdrawal will result in less interest for any FD like deposit.

You can confirm from your branch tomorrow brother. No penalty is there for MOD account.

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billubakra wrote:

You can confirm from your branch tomorrow brother. No penalty is there for MOD account.

https://sbi.co.in/web/personal-banking/investme...

When there is break of MOD, the interest is paid with penalty at the applicable rate for the period the broken amount has run and the remaining amount continue to earn original rate of interest.

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guest_999 wrote:

https://sbi.co.in/web/personal-banking/investme...

When there is break of MOD, the interest is paid with penalty at the applicable rate for the period the broken amount has run and the remaining amount continue to earn original rate of interest.

Yes it is mentioned on website but no rate is mentioned. Please do me a favor ask your branch tomorrow about the penalty rate they will say that it’s zero.

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billubakra wrote:

Yes it is mentioned on website but no rate is mentioned. Please do me a favor ask your branch tomorrow about the penalty rate they will say that it’s zero.

For Retail Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors).
For Retail Term Deposits above Rs 5.00 lacs but below Rs 1 crore, applicable penalty will be 1% (all tenors).

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caks2006407 wrote:

For Retail Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors).
For Retail Term Deposits above Rs 5.00 lacs but below Rs 1 crore, applicable penalty will be 1% (all tenors).

Source? Aren’t you talking about FD’s?

Anyways 52000 @ (3.90-1%) 2.90% for 83 days = 343/-

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billubakra wrote:

Yes it is mentioned on website but no rate is mentioned. Please do me a favor ask your branch tomorrow about the penalty rate they will say that it’s zero.

There are many things branch people will say but it is mostly all automated so system decides all these things. You can try to talk to your branch ppl to ask whether they can reverse this system decided charge & I am pretty sure they won’t be able to do a thing. Always check details/info on website first because to do anything contradicting the system, the branch person needs to be in a high position with sufficiently good enough reason.

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billubakra wrote:

Source? Aren’t you talking about FD’s?

Anyways 52000 @ (3.90-1%) 2.90% for 83 days = 343/-

Irrespective of what they told you penalty is applicable for MOD withdrawals and penalty is same for FD and MOD[mentioned in SBI website].
Already mentioned links in my 1st reply.
Also your calculations are incorrect.
Refer my first reply in this post.

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