SOD in banking typically refers to Secured Overdraft. It's a continuous credit limit offered to individuals or businesses. This credit line is secured against financial obligations like Fixed Deposits (FDs) or other scheme deposits held with the bank. Think of it as a safety net – you can borrow up to a certain limit, but the bank has collateral (your deposits) to cover the loan.
Several banks, such as Bengal Commercial Bank (https://www.bgcb.com.bd/corporate-product/secured-over-draft-sod), offer SOD facilities. Mercantile Bank PLC also offers a similar product labeled as SOD (FO) or Secured Over Draft (Financial Obligation) (https://www.mblbd.com/home/funded).
Key Features of a Secured Overdraft (SOD):
- Continuous Credit Limit: Access to funds up to an agreed-upon limit.
- Secured by Collateral: The overdraft is secured by assets like FDs or other deposits.
- Available to Businesses and Individuals: Both entities can often access this type of credit.
In contrast to this financial meaning, "SOD" can also refer to the Summary of Deposits, an annual survey conducted by the Federal Deposit Insurance Corporation (FDIC) (https://www.fdic.gov/bank-financial-reports/summary-deposits). This survey collects data on branch office deposits for all FDIC-insured institutions. Access to this data (https://banks.data.fdic.gov/bankfind-suite/SOD) provides valuable insights into the banking system's health.
The term "SOD" can also have entirely different meanings outside the financial context. For example, in fishing communities, "sod bank" refers to grassy banks along creeks and bays (https://www.thefisherman.com/article/sod-bank-stripers-green-grass-high-tides-2/, https://www.thebassbarn.com/threads/what-the-heck-is-a-sod-bank.71051/).
