Newfangled Multi Option Deposit Scheme (MODS) offered by State Bank of India (SBI)- largest public sector lender- is a term or fixed deposit scheme which allows the customers to withdraw the amount, as per their need, in the multiples of 1,000, and continue to earn the interest as per the initial rate at the time of commencement of fixed deposit.
Eligibility details for the MODS scheme are furnished below:
- Account linkage: The scheme is linked to SBI’s savings or current account, according to the bank’s website – sbi.co.in.
- Minimum amount: The minimum fixed deposit amount for the multi option deposit account is Rs. 10,000. Any deposits above this amount are required to be in multiples of Rs. 1,000.
- Maximum amount: However, there is no upper limit on the amount that can be deposited in this type of fixed deposit account.
- Minimum tenure: The minimum tenure for which this deposit can be opened is one year.
- Maximum tenure: For SBI’s multi option FD deposit account, the maximum tenure is five years.
- Interest Rate: SBI pays the same interest on a multi option fixed deposit account as a fixed deposit account. SBI revised its interest rates on retail fixed deposits with effect from November 28, 2018. The following FD interest rates are for deposits below Rs. 1 crore:
- Premature withdrawal: Premature withdrawal is allowed in SBI’s multi option deposit account. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, said SBI.
- Nomination: Nomination facility is available with the MODS account according to the SBI’s website.
- Minimum balance: Customers do not need to maintain a MAB (Monthly Average Balance) in the linked savings bank account.
Other features: Loan facilities is also available with the MODS account. TDS (tax deducted at source) is applicable on investment in the Multi Option Deposit Scheme, according to SBI.