• SBI MOD (Multi Option Deposit) Scheme: Features and Interest Rates

    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because in case the depositor issues a cheque for an amount that is not present in the savings account, the balance is withdrawn from the SBI MOD account and paid.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.

    Eligibility Criteria for Applying for MODs

    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.

    SBI Multi-Option Deposit Rates of Interest

    The SBI MOD interest rates in 2021 (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 5.00% 5.50%
    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 19 July 2021.

    • When you withdraw money from the MODS account, you will continue to earn the term deposit rates applicable at the time of initial deposit on your balance amount. 
    • 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.

    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.

    Features of the SBI Multi Option Deposit

    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.
    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.

    FAQs on SBI MOD:

    1. What determines the mode of operation for this deposit?

      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.

    2. Can I open and close this account online?

      While it is possible to open an SBI MOD online, it is not possible to close it online.

    3. Can I open a MOD with any type of account linked to it?

      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.

    4. What happens to the maturity amount in this FD?

      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.

    5. Are premature withdrawals permitted for this fixed deposit?

      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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