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

    Once money has been invested in a fixed deposit, it is pretty much inaccessible to the depositor, unless they go in for a premature withdrawal. But what happens if the need is great but not too big in terms of the amount needed. Would it really make sense to break a big deposit for a few thousand rupees? 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because in case the depositor issues a cheque for an amount that is not present in the savings account, the balance is withdrawn from the SBI MOD account and paid.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 2019 (for deposits below Rs.1 crore) are similar to regular SBI FD rates:

    Tenure Regular FD Interest Rates (p.a) Senior Citizen FD Interest Rates (p.a)
    7 days-45 days 5.75 6.25
    46 days- 179 days 6.25 6.75
    180 days- 210 days 6.35 6.85
    211 days < 1 year 6.40 6.90
    1 year < 2 years 6.70 7.20
    2 years < 3 years 6.75 7.25
    3 years < 5 years 6.80 7.30
    5 years and up to 10 years 6.85 7.35

    *- The interest rates enlisted based on the update given by SBI as of 30 July 2018.

    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 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


    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 5.75% per annum.

    Max: The maximum interest that can be earned is 6.85% per annum.

    The interest rates will depend on the tenure of the deposit and the amount that is deposited.


    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.


    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

    This deposit cannot be used to secure a loan.

    Nomination (if any)

    Nomination facilities are available with this deposit.

    Auto Renewals

    Not applicable

    FAQ's on SBI MOD:

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

    A. 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.

    Q. Can I open and close this account online?

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

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

    A. 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.

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

    A. In most cases, the maturity amount can be transferred to an account of your choosing but with MODs the maturity amount is only deposited in the account to which the FD is linked.

    Q. Are premature withdrawals permitted for this fixed deposit?

    A. Yes, depositors can go in for a premature withdrawals but such withdrawals will be subject to the rules for TDR and STDR.

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