SBI Mod question

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Deal Subedar
billubakra

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 They tread X amount of deposit for 1 year withdrawn before the actual date.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

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

Deal Subedar Deal Subedar
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No penalty in MOD account

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Critic Critic
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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.

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

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