The MOD Full Form in Banking is Multi Option Deposit. If you open an account for a Fixed Deposit, customers are not able to access the funds within that account without first paying a pre-closure fee. On the other hand, you can’t be sure that you won’t need the money in an unexpected circumstance.
An MOD, also known as Multi Option Deposit, is designed to manage situations exactly like this one in a perfect world.
Because the SBI MOD account is actually connected to a savings account, this configuration can be helpful in the event that the depositor writes a check for a sum that exceeds the available funds in the savings account. In this scenario, the excess funds are taken from the bank’s MOD account and used to cover the shortfall.
The person who makes the deposit also has the option of using ATMs to withdraw amounts from MOD account that is multiples of one thousand rupees.
You will keep earning interest at the time deposit rates that were available at the time that the first deposit was made on the amount of money that is still in the MODS account after you take money out of it.
People over the age of 65 are eligible for an interest rate that is 0.50% higher than the standard rate. The interest rates that are applicable to depositors are increased by one percentage point for depositors who are currently employed by the SBI or who have resigned from the organization.