SBI has increased their minimum threshold limit for auto sweep facility of MOD for Savings Accounts to INR 50,000 from INR 35,000.
This means now MOD based FD will be created once Savings Account cross INR 50,000.
was it 35K earlier? was it not 25K??? for me every MOD ll be triggered with 25K in account balance...
similarly KMBL have also increased the threshold to 50K...
was it 35K earlier? was it not 25K??? for me every MOD ll be triggered with 25K in account balance...
similarly KMBL have also increased the threshold to 50K...
Hi guys
Have some questions
I've recently opened sbi account (salary via my employer) and I want to utilise the auto sweep feature
I've heard some people getting ITD notices due to multiple new FDs created due to auto sweep feature? Can you pls help on same
How does this work actually, I'm a little confused.
As per the 50k limit if my account has 60k then 10k will be used to create a new FD? And account will be left with 50k?
In case of shortfall if account is at 20k then this 10k will again be broken from FD and credited to account ?
Need some clarification.
Which will be better monthly / weekly?
Is there any penalty?
Any other things to keep in mind
Thanks in advance
i am not sure bout any ITD notices for these MODS deposits
yes the amount in excess of 50K ll be send as new TD(term deposit) in multiples of 1000.. and yr account will be left with 50K with minimal excess which was not sent as TD. (the amount which doesnt come into tat multiple of 1000)_
as for as SBI s concerned they dont break your TD if yr account balance goes less than 50K. (KMBL does tat by looking at yr EOD balance). so u can continue transaction with tat 50K till its exhausted. it ll be broken oly if u need that money for transaction. For eg if u are dong a transaction of an amount which is more than wat is present in yr account balance the TD ll be broken and it ll be utilised for the transaction.
there is no penalty for breaking the TD anytime.
if that s yr salary account and you ll be getting oly salary credit in that account den its better to keep monthly... or if u ll be getting many credits on different days throughout the month den u can keep it weekly but that ll result in lots of MODS account getting created and it ll be difficult to keep track of them..
Other things to be kept in mind- bank might put any of yr MODS TD on hold for any reason.. if that has happened den you cant utilise any of yr funds if the MODS that s on hold is the next MODS to be broken for yr fund requirement.. it wont say that MODS on hold too.. we have to find tat n advise them to remove the hold (happened to me once which took me years to find out that resulted in a bit of financial loss too )..
Hopefully i have cleared mot of yr confusion..
Cheers...
