The SBI Multi Option Deposit Scheme (MODS) is a kind of term deposit that is linked to a savings or current account. Know more about it here.
The SBI Multi Option Deposit Scheme (MODS) is a kind of term deposit that is linked to a savings or current account. Unlike normal fixed deposits (FD), which must be completely liquidated whenever funds are necessary, you can withdraw from a MODS account in multiples of Rs 1, 000 as required. The balance amount in your MODS account will continue to earn the term deposit rates applicable at the time of the initial deposit.
1. What is the minimum amount for a term deposit?
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You can open a MOD account with a minimum amount of Rs.10,000 with increments in multiple of Rs. 1000. There is no upper cap on the amount to open an SBI MODS account.
2. Eligibility
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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.
3. Interest rates
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The balance amount in the MODS account continues to earn the FD rates applicable at the time of the initial deposit. At present, SBI FD interest rates vary between 2.9% to 5.4% for general customers. These rates are effective from January 8, 2021.
4. Tenure
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For SBI's multi-option deposit account, the minimum tenure is one year and the maximum tenure is five years.
5. Premature withdrawal
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For FDs up to Rs 5 lakh, the penalty for premature withdrawal is 0.50 percent (all tenors). For FDs above Rs 5 lakh but below Rs 1 crore, the applicable penalty is 1 percent (all tenors).
When you prematurely close a MODS, the interest rate applicable for the deposit period is paid to your after deducting the penalty.
No interest is paid on deposits that remain for a period of less than 7 days.
6. Taxation
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Tax can be deducted at source if the interest earned on the deposit is more than Rs 10,000 during the financial year.
