When you open in a Fixed Deposit, you will not be able to withdraw the amount without paying a pre-closure charges. However, you may require the money in the case of an emergency. This is the ideal situation that an MOD, or a Multi Option Deposit, is meant to handle. SBI MOD is actually linked to a savings account and this helps because in case the depositor issues a cheque for an amount that is not present in the savings account, the balance is withdrawn from the SBI MOD account and paid. The depositor also gets the option to withdraw amounts in multiples of Rs. 1,000 from the MOD account through ATMs.
The eligibility criteria for the SBI MOD is the same as that for all other Fixed Deposits. This is a product that is available to all those residing in India, and at times also to non-resident Indians. This deposit may also be available to entities like HUF, companies, organisations and various other groups of people.
The SBI MOD interest rates in 2020 (for deposits below Rs.2 crore) are similar to regular SBI FD rates:
| Tenure | Interest Rate p.a. (General Public) | Interest Rate p.a. (Senior Citizen) |
|---|---|---|
| 7 to 45 days | 2.90% | 3.40% |
| 46 to 179 days | 3.90% | 4.40% |
| 180 to 210 days | 4.40% | 4.90% |
| 211 to less than 1 year | 4.40% | 4.90% |
| 1 year to less than 2 years | 5.10% | 5.60% |
| 2 years to less than 3 years | 5.10% | 5.60% |
| 3 years to less than 5 years | 5.30% | 5.80% |
| 5 years to up to 10 years | 5.40% | 6.20% |
Note - The interest rates have been revised w.e.f. from 10 September 2020.
With this fixed deposit, senior citizens can earn 0.50% more than the applicable rates of interest. For those depositors, who are working for SBI or have retired from the organisation, the interest rates are 1% more than the applicable rates.
Always remember that banks can change the FD interest rates from time to time so it best to find out the current rates before investing.
| Account Type | Single and Joint |
|---|---|
| Amount | Min: The minimum amount that can be invested in the SBI MOD is Rs. 10,000. If further deposits are made, then they need to be in multiples of Rs. 1,000.Max: The bank has assigned no upper limit on the amount that can be invested in the MOD account. |
| Rate of Interest | Min: The minimum interest rate that can be earned on MOD is 2.90% per annum.Max: The maximum interest that can be earned is 5.40% per annum.The interest rates will depend on the tenure of the deposit and the amount that is deposited. |
| Tenure | Min: The minimum tenure for which this deposit can be opened is 1 year.Max: The maximum permissible tenure for MOD, unlike regular SBI FDs, is 5 years. |
| TDS | Tax can be deducted at source if the interest earned on the deposit is more than Rs. 10,000 during the financial year. The tax rates applicable can be 10% or 20% depending on the depositor's ability to provide PAN details. |
| Loan against the scheme | You can avail a loan against the amount that is available in the account. |
| Nomination (if any) | Nomination facilities are available with this deposit. |
| Auto Renewals | Not applicable |
| Transferability | The account can be transferred from one branch to another. |
The mode of operation depends on the savings account linked to the account. If the account is a joint account then the MOD too with be operated jointly.
While it is possible to open an SBI MOD online, it is not possible to close it online.
No. MODs can only be opened with a savings bank account linked to them and even then the conditions state that the account needs to be an active one; dormant or discontinued accounts won't work.
In most cases, the maturity amount can be transferred to an account of your choosing. However, with MODs the maturity amount is only deposited in the account to which the FD is linked.
Yes, depositors can go in for a premature withdrawal facility. However, such withdrawals will be subject to the rules for TDR and STDR.
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