short note on multiple option deposit account
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What is a multiple option deposit account?
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Rajiv Vadera, MBA Finance & Marketing (2004)
Answered Oct 9
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Originally Answered: What is Multiple Option deposit Account?

Multiple Option Deposit Account:
A lot of banks have recently introduced this type of bank account. It is a type of Savings Account in which deposit in excess of a particular limit gets automatically transferred into Fixed Deposit.
For example, suppose the limit for transfer of funds to fixed deposit is Rs.10,000/-. If you are having a balance of Rs.50,000 is this type of an account, Rs.40,000/- will be transferred to a fixed deposit account. This means you would earn a higher rate of interest on Rs.40,000/-.
On the other hand, in case adequate fund is not available in the Savings Bank Account so as to honour a cheque that we may have issued, the required amount gets automatically transferred from Fixed Deposit to the Savings Bank Account. The balance amount remaining in fixed deposit account (after transfer of required amount from fixed deposit to savings account) continues as Fixed Deposit and earns interest as per the existing rate of interest on fixed deposit.
Refer - Types of Bank Accounts
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Rahul Utekar, Assistant
Answered Feb 25
It is fixed deposit account. Speciality about it is you get FD rates on this amount but it is withdrawable partially.
It means , say you have 25000 in MOD and 5000 in your savings bank account. You want to withdraw 10000 from ATM. In normal circumstances(if you had traditional bank FD) you were able to withdraw only 5k as 25000 are in FD but in this case, you will be able to 10000 as 5000 will be deducted from you MOD account. Remaining 20000 in MOD will continue to run as FD as interest will be earned on that 20000. Interest earned on 25000 until then will remain there.
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3 ANSWERS

Rajiv Vadera, MBA Finance & Marketing (2004)
Answered Oct 9
Continue Reading
Originally Answered: What is Multiple Option deposit Account?

Multiple Option Deposit Account:
A lot of banks have recently introduced this type of bank account. It is a type of Savings Account in which deposit in excess of a particular limit gets automatically transferred into Fixed Deposit.
For example, suppose the limit for transfer of funds to fixed deposit is Rs.10,000/-. If you are having a balance of Rs.50,000 is this type of an account, Rs.40,000/- will be transferred to a fixed deposit account. This means you would earn a higher rate of interest on Rs.40,000/-.
On the other hand, in case adequate fund is not available in the Savings Bank Account so as to honour a cheque that we may have issued, the required amount gets automatically transferred from Fixed Deposit to the Savings Bank Account. The balance amount remaining in fixed deposit account (after transfer of required amount from fixed deposit to savings account) continues as Fixed Deposit and earns interest as per the existing rate of interest on fixed deposit.
Refer - Types of Bank Accounts
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Comment...
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Rahul Utekar, Assistant
Answered Feb 25
It is fixed deposit account. Speciality about it is you get FD rates on this amount but it is withdrawable partially.
It means , say you have 25000 in MOD and 5000 in your savings bank account. You want to withdraw 10000 from ATM. In normal circumstances(if you had traditional bank FD) you were able to withdraw only 5k as 25000 are in FD but in this case, you will be able to 10000 as 5000 will be deducted from you MOD account. Remaining 20000 in MOD will continue to run as FD as interest will be earned on that 20000. Interest earned on 25000 until then will remain there.
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A lot of banks have recently introduced this type of bank account. It is a type of Savings Account in which deposit in excess of a particular limit gets automatically transferred into Fixed Deposit.
For example, suppose the limit for transfer of funds to fixed deposit is Rs.10,000/-. If you are having a balance of Rs.50,000 is this type of an account, Rs.40,000/- will be transferred to a fixed deposit account. This means you would earn a higher rate of interest on Rs.40,000/-.
On the other hand, in case adequate fund is not available in the Savings Bank Account so as to honour a cheque that we may have issued, the required amount gets automatically transferred from Fixed Deposit to the Savings Bank Account. The balance amount remaining in fixed deposit account (after transfer of required amount from fixed deposit to savings account) continues as Fixed Deposit and earns interest as per the existing rate of interest on fixed deposit.
For example, suppose the limit for transfer of funds to fixed deposit is Rs.10,000/-. If you are having a balance of Rs.50,000 is this type of an account, Rs.40,000/- will be transferred to a fixed deposit account. This means you would earn a higher rate of interest on Rs.40,000/-.
On the other hand, in case adequate fund is not available in the Savings Bank Account so as to honour a cheque that we may have issued, the required amount gets automatically transferred from Fixed Deposit to the Savings Bank Account. The balance amount remaining in fixed deposit account (after transfer of required amount from fixed deposit to savings account) continues as Fixed Deposit and earns interest as per the existing rate of interest on fixed deposit.
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