Key Things To Know About SBI's Multi Option Deposit Account
State Bank of India or SBI's Multi Option Deposit (MOD) account is a type of fixed deposit (FD) account linked to the savings or current account. Unlike in fixed deposits (FDs), which are fully liquidated, an MOD account holder can withdraw in multiples of Rs 1,000 at the time of need, according to SBI's website- sbi.co.in. The withdrawal can be done by issuing a cheque from savings bank account or from ATM or branch or through any other channel. The sum of available balance in the savings account and MOD balance can be used for issuing cheques or withdrawal or for making any other payment, mentioned SBI. (Also read: All You Need To Know About SBI's Student Scholar Loan)
Here are 5 things to know about SBI's MOD account:
1. The minimum term or fixed deposit amount needed for MOD creation is Rs 10,000. Any deposits above this amount are required to be in multiples of Rs 1,000, as mentioned on SBI's website- sbi.co.in
2. There is no limit for a maximum term deposit amount for MOD creation, according to country's largest lender's website.
3. For SBI's multi option deposit account, the minimum tenure is one year and the maximum tenure is five years.
4. SBI pays the same interest on a multi option fixed deposit account as on a fixed deposit account. SBI revised its interest rates on retail fixed deposits with effect from May 9, 2019. The following FD interest rates are for deposits below Rs 2 crore, as mentioned on SBI's website:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 1 year to less than 2 year | 7 | 7.5 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.7 | 7.2 |
| 5 years and up to 10 years | 6.6 | 7.1 |
5. Tax can be deducted at source if the interest earned on the deposit is more than Rs. 10,000 during the financial year, according to SBI.
