The SBI Multi Option Deposit Scheme (MODS) is a form of term deposit that is linked to a savings or current account of an individual. Opposed to traditional fixed deposits (FDs), which must be completely liquidated whenever funds are necessary, MODS accounts allow you to withdraw funds in multiples of Rs 1,000 as required. The term deposit rates that were in effect at the time of the initial deposit will continue to apply to the deposit of your MODS account. The ten most important things to note about SBI's Multi Option Deposit Scheme are mentioned below.
Lesser known facts of SBI Multi Option Deposit Scheme
- The minimum term deposit amount required to open an SBI MODS account is Rs 10,000, with subsequent deposits in multiples of Rs 1,000.
- The cumulative term deposit balance for an SBI MODS account is unrestricted.
- The interest rate on an SBI MODS account is the same as the term deposits of SBI. For general customers, SBI FD interest rates range from 2.9 per cent to 5.4 per cent which is in effect from January-8, 2021. To know more about SBI FD rates for both general public and senior citizens, click here.
- An SBI MODS account has a minimum tenure of one year and a maximum tenure of five years.
- An SBI MODS account allows for early withdrawal. The penalty for premature withdrawal on FDs up to Rs 5 lakh is 0.50 per cent across all tenures. Similarly, the penalty for FDs value more than Rs 5 lakh but less than Rs 1 crore is 1%.
- When you break MOD, the interest is charged with a penalty at the applicable rate for the time the broken amount has been active, while the remaining amount earns the initial rate of interest. For deposits that are held for less than seven days, no interest is charged.
- SBI MODS accounts can be opened by citizens independently or jointly, minors (either individually or by their guardians), HUF Kartas, firms, companies, local bodies, and any government department.
- SBI's Multi Option Deposit Scheme is subject to tax deducted at source (TDS).
- An SBI MODS account can also be used to obtain a loan. When a lien is imposed on a single account, further breaking of units is not permitted.
- An SBI MODS account has the option of being nominated.
- You can open a MODS account online or offline at the nearest bank branch of SBI.
A step-by-step guide to open an SBI MOD account online
- Visit https://retail.onlinesbi.com/retail/login.htm and head to the 'Fixed Deposit' tab
- Now you will see the e-TDR/e-STDR (FD) option which you need to select.
- Now select the e-TDR/e-STDR (MOD) Multi Option Deposit option and click on 'Proceed'
- Now select your savings/debit account number and enter MOD amount, tenure and select deposit options from TDR or STDR.
- Click on 'Submit' to confirm your request.