SBI multi-option deposit scheme: Interest rate, eligibility, other details

SBI multi-option deposit scheme (MODS) account can be opened online or by visiting your nearest branchs

SBI multi-option deposit scheme: Interest rate, eligibility, other details

SBI Multi Option Deposit Scheme (MODS) are term deposits linked to the savings or current account (individual). Unlike normal fixed deposits (FD) which are fully liquidated anytime you need funds; you can withdraw from a MODS account in multiples of 1, 000 as per your fund need. The balance amount in your MODS account will continue to earn the term deposit rates applicable at the time of the initial deposit.

Here are 10 things to know about SBI’s Multi Option Deposit Scheme:

1) The minimum term deposit amount needed for creating an SBI MODS account is  10,000 and in multiples of  1,000 each thereafter.

2) There is no limit for a maximum term deposit amount for an SBI MODS account.

3) The rate of interest on an SBI MODS account is the same as that applicable on term deposits. SBI FD interest rates vary between 2.9% to 5.4% for general customers. These rates are effective from 8 January 2021.

4) The minimum tenor applicable for an SBI MODS account is 1 year and the maximum is 5 years.

5) Premature withdrawal is allowed in an SBI MODS account. For FDs up to 5 lakh, the penalty for premature withdrawal is 0.50 per cent (all tenors). For FDs above 5 lakh but below 1 crore, the applicable penalty is 1 per cent (all tenors). When there is a break of MOD, the interest is paid with a penalty at the applicable rate for the period the broken amount has run and the remaining amount continues to earn the original rate of interest. No interest is paid on deposits that remain for a period of fewer than 7 days.

6) Resident individuals singly or jointly, minor (himself/herself or through his/her guardian), Karta of HUF, firm, company, local bodies and any government department can open the SBI MODS account.

7) Tax deducted at source (TDS) is applicable to SBI’s Multi Option Deposit Scheme.

8) Loan facility is also available in an SBI MODS account. Further breaking of units when the lien is marked on a particular account is not allowed.

9) Nomination facility is available for an SBI MODS account

10) You can create a MODS account through Online SBI or by visiting your nearest branch.

How to open an SBI MOD account online

1) Log in to SBI online.

2) Click and open the Fixed Deposit section.

3) Here you can see e-TDR/e-STDR (FD), click on it.

4) Now, select e-TDR/e-STDR (MOD) Multi Option Deposit and proceed.

5) Select your debit account number, enter MOD amount, select deposit options like TDR or STDR, enter tenure for your MOD and submit.

6) Confirm your MOD opening request.

Source: LiveMint