What is a Multi Option Deposit in SBI?

The Multi Option Deposit (MOD) in SBI is a term deposit scheme linked to a savings or current account. It allows depositors to withdraw funds in multiples of â¹1,000 without needing to close the entire deposit. The remaining balance continues to earn interest at the rate applicable when the deposit was made.

Which is better, MOD or FD in SBI?

The choice between MOD and FD depends on individual needs. MOD offers more flexibility with partial withdrawals and liquidity, making it suitable for those who may need access to their funds. Traditional FDs generally provide higher interest rates but lack the same level of access without penalties.

What is the penalty for a MOD account in SBI?

For premature withdrawal from an SBI MOD account, a penalty applies: 0.50% for deposits up to â¹5 lakh and 1% for deposits between â¹5 lakh and â¹1 crore. No interest is paid on deposits held for less than seven days.

How to apply for the MOD in SBI?

You can apply for an SBI MOD account online or offline. Online, log into the SBI portal or app, go to the FD section, select e-TDR/e-STDR under the MOD menu, fill in your details, and submit your request. Offline, visit an SBI branch, request an application form, fill it out, and submit it with the necessary documents.

What are the disadvantages of an SBI MOD account?

Some disadvantages of an SBI MOD account include lower interest rates compared to traditional FDs, potential penalties for premature withdrawal, and the requirement to maintain linked savings or current accounts with an Average Monthly Balance (AMB).

SBI Multi Option Deposit Scheme (MOD)

The SBI Multi Option Deposit Scheme (MOD) is an innovative financial product offered by the State Bank of India (SBI), designed to provide flexibility and liquidity to depositors. This scheme allows individuals to link their term deposits with their savings or current accounts, enabling them to withdraw funds as needed without incurring penalties. This article explores the features, benefits, eligibility criteria, and application process for the SBI MOD scheme.

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7.1%^*

Guaranteed Plan

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(10 Years)

6.5%^**

Fixed Deposits

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(5-10 Years)

7.1%^***

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SBI FD Interest Rates

TENURE	REGULAR RATES Current Rates	SENIOR CITIZEN
7 days to 45 days	3.50%	4.00%
46 days to 179 days	5.50%	6.00%
180 days to 210 days	6.25%	6.75%
211 days to less than 1 year	6.50%	7.00%
1 year to less than 2 year	6.80%	7.30%
2 years to less than 3 years	7.00%	7.50%
3 years to less than 5 years	6.75%	7.25%
5 years and up to 10 years	6.50%	7.50%
400 days (Amrit Kalash)	7.10%	7.60%
444 days (Amrit Vrishti)	7.25%	7.75%

What is SBI Multi Option Deposits (MOD)?

The SBI Multi Option Deposit Scheme is a type of term deposit linked to an individual's savings or current account. Unlike traditional fixed deposits that require complete liquidation for withdrawals, the MOD scheme permits partial withdrawals in multiples of ₹1,000 while the remaining balance continues to earn interest at the original rate. This feature makes it an attractive option for those who may need access to their funds before the maturity date.

Partial Withdrawals: Withdrawals can be made in multiples of ₹1,000.
Interest Earnings: The remaining balance continues to earn interest at the rate applicable at the time of the initial deposit.
Linked Accounts: Must be connected to a savings or current account.

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

Life Cover

Tax on Profit

Taxable

Risk

High Risk

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*For annual premium upto ₹5 Lacs

SBI Multi Option Deposit Interest Rates ~ w.e.f. 15 June 2024

The interest rates for the SBI MOD scheme are competitive and vary based on the tenure of the deposit. As of November 12, 2024, the rates are as follows:

Tenure	Interest Rate (General Public)	Interest Rate (Senior Citizens)
1 year	6.80%	7.30%
2 years	7.00%	7.50%
3 years	6.75%	7.25%
4 years	6.75%	7.25%
5 years	6.50%	7.50%

These rates are subject to change based on market conditions and bank policies.

Eligibility Criteria for SBI Multi Option Details

The eligibility criteria for opening an SBI MOD account are inclusive and cater to a wide range of individuals and entities:

Resident Individuals: Can open accounts singly or jointly.
Minors: Can open accounts through guardians.
Hindu Undivided Families (HUF): Eligible to apply.
Corporate Entities: Firms and companies can also participate.
Government Departments: Can open accounts under this scheme.

FD interest rates India have fallen consistently over the last 12 years.

Invest in Plans that offer Guaranteed Returns for over 25 Years

Features of the SBI Multi Option Deposit (MOD) Scheme

The SBI MOD scheme comes with several beneficial features:

Combination of Accounts: The MOD scheme combines Term Deposits or Special Term Deposits with linked Savings Bank or Current Accounts, providing seamless access to funds.
Complete Liquidity: Depositors can withdraw funds in multiples of ₹1,000 at any time using cheques, ATMs, or Internet Banking, ensuring high liquidity.
Minimum Deposit: A minimum initial deposit of ₹10,000 is required, with subsequent deposits in multiples of ₹1,000.
Flexible Tenure: Deposit tenures range from 1 to 5 years, allowing customers to choose based on their financial goals.
Auto Sweep Facility: The MOD scheme is available through an auto sweep facility in Savings Plus accounts. This feature allows for automatic transfers between accounts based on specific thresholds.
Minimum Threshold Requirements: For the auto sweep facility, a minimum threshold balance of ₹35,000 and a minimum resultant balance of ₹25,000 are required. The minimum sweep amount is ₹10,000 in multiples of ₹1,000.
Stand-Alone MODs: Customers can still open individual Stand-Alone MODs or e-MODs with a minimum deposit of ₹10,000, regardless of the threshold limits for auto sweep.
Additional Interest for Seniors: Senior citizens enjoy an additional rate of interest on their deposits, enhancing their earning potential.
Average Monthly Balance (AMB): Maintaining an Average Monthly Balance is required for linked Savings Bank or Current Accounts associated with the MOD scheme.
Nomination Facility: Depositors can nominate beneficiaries for their accounts.
Loan Against FD: Customers can avail of loans against their deposits.
Tax Deduction at Source (TDS): Applicable on interest earned exceeding ₹10,000 in a financial year.

How to Apply for the SBI MOD Scheme?

Applying for an SBI Multi Option Deposit account is straightforward and can be done online or offline:

Online Application Process:
- Visit the official SBI website or use the SBI mobile app.
- Navigate to the Fixed Deposit section.
- Select "e-TDR/e-STDR" under the MOD menu.
- Fill in your details, including your debit account number and tenure.
- Submit your application and confirm your request.
Offline Application Process:
- Visit your nearest SBI branch.
- Request an application form for the MOD scheme.
- Fill out the form with the required details and submit it along with the necessary documents.

*Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Benefits of Investing in SBI Multi Option Deposit Scheme

Investing in the SBI MOD scheme offers numerous advantages:

Liquidity: Access funds without penalties through partial withdrawals.
Competitive Interest Rates: Earn attractive interest rates similar to traditional fixed deposits.
Flexibility in Deposits: Make additional deposits easily as per your financial needs.
Safety: Being a government-backed bank, deposits are secure and reliable.

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Conclusion

The SBI Multi Option Deposit Scheme is an excellent choice for individuals seeking a flexible investment option that combines the benefits of fixed deposits with easy access to funds. With competitive interest rates, minimal deposit requirements, and a host of features designed for convenience, the SBI MOD scheme caters well to both short-term liquidity needs and long-term savings goals.

FAQs

What is a Multi Option Deposit in SBI?

The Multi Option Deposit (MOD) in SBI is a term deposit scheme linked to a savings or current account. It allows depositors to withdraw funds in multiples of ₹1,000 without needing to close the entire deposit. The remaining balance continues to earn interest at the rate applicable when the deposit was made.
Which is better, MOD or FD in SBI?

The choice between MOD and FD depends on individual needs. MOD offers more flexibility with partial withdrawals and liquidity, making it suitable for those who may need access to their funds. Traditional FDs generally provide higher interest rates but lack the same level of access without penalties.
What is the penalty for a MOD account in SBI?

For premature withdrawal from an SBI MOD account, a penalty applies: 0.50% for deposits up to ₹5 lakh and 1% for deposits between ₹5 lakh and ₹1 crore. No interest is paid on deposits held for less than seven days.
How to apply for the MOD in SBI?

You can apply for an SBI MOD account online or offline. Online, log into the SBI portal or app, go to the FD section, select e-TDR/e-STDR under the MOD menu, fill in your details, and submit your request. Offline, visit an SBI branch, request an application form, fill it out, and submit it with the necessary documents.
What are the disadvantages of an SBI MOD account?

Some disadvantages of an SBI MOD account include lower interest rates compared to traditional FDs, potential penalties for premature withdrawal, and the requirement to maintain linked savings or current accounts with an Average Monthly Balance (AMB).

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
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~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ †Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

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