The minimum threshold limit for transfer to SBI's multi option deposit (MOD) is Rs 35,000 The State Bank of India (SBI) account holders who want to earn maximum out of their SBI savings account can take succour in the SBI savings plus account.
The SBI savings plus account allows the customers to earn interest at a higher rate on the money that is lying idle in the savings bank account.
The minimum amount that one requires in the savings bank account is Rs 35,000 and beyond that a minimum of Rs 10,000 will be transferred to the multi-option deposit (MOD).
The money is transferred in the multiples of Rs 1,000.
For instance, if the SBI savings bank account has 46,300 then the amount that will be transferred to MOD will be 11,000 and not Rs 11,300 (Rs 46,300 - Rs 35,000) because the transfer has to happen in the multiples of Rs 1,000.State Bank of India (SBI) Savings Plus Account Features:1.
The minimum amount that is transferred to multi option deposit (MOD) is Rs 10,000 in multiples of Rs 1,000.2.
The minimum threshold limit for transfer to multi-option deposit (MOD) is Rs 35,000.3.
At the time of availing the facility, the customer must specify whether first in first out (FIFO) or last in first out (LIFO) principle should be applied for redeeming of deposits.
In the absence of any mandate, the last in first out (LIFO) principle should be applied.4.
All the facilities that are offered to savings bank account holders that include ATM card, mobile banking, internet banking and sms alerts are available in this account.5.
The monthly average requirement for the savings plus account in a metro is Rs 3,000, Rs 3,000 in urban, Rs 2,000 in semi-urban, and Rs 1,000 in rural areas.
This balance will be maintained for which the reverse sweep will be triggered.What is LIFO This means last in first out.
When the customer's balance in savings bank account falls below the minimum account balance (MAB) then some of the money from the savings plus account is transferred to the savings account so as to maintain the minimum balance.
While doing so, some of the term deposits are to be broken involuntarily.
However, the bank will make sure that only the last term deposits are broken and not the first ones.
This is good for the customer since the last term deposits would have accrued the least interest in comparison to the earlier ones.What is FIFO This means first in first out.
When the deposits are forcibly broken for shifting the money to the savings bank account then only those deposits are broken which were made in the beginning leaving the later deposits intact.HDFC Bank The facility similar to State Bank of India's Savings Plus account in case of HDFC Bank is known as Sweep-in facility.
Just as in SBI, the transfer of funds from your fixed deposits (FD) to savings account will trigger on last in first out (LIFO) basis.HDFC Bank sweep-in account features:1.
HDFC sweep-in facility is available for resident individuals, Hindu undivided families (HUF), private and public limited companies, societies, trust.2.
In case the HDFC fixed deposit (FD) is held for fewer than seven days, the bank will forfeit interest for the amount transferred.ICICI BankThe plan similar to SBI's savings plus account in case of ICICI Bank is known as ICICI Bank Money Multiplier plan.ICICI Bank Money Multiplier Plan Features:1.
Creation of a linked fixed deposit (FD) makes sure that a higher rate of interest is accrued on the savings bank deposits.2.
A customer can issue instructions through any channel such as the bank branch, ICICI Bank phone banking and ICICI Bank's internet banking for creation of fixed deposit (s) from the surplus funds in Savings Bank Account (subject to a minimum of Rs 10,000).3.
The fixed deposits will be created in multiples of Rs 5,000 for tenure of one year or more as instructed.4.
In case of automatic reverse sweep in, all linked fixed deposits (FD) will be enabled for automatic reverse sweep in the multiples of Rs 5,000 on a last in first out (LIFO) basis.