SBI or State Bank of India offers Multi Option Deposit (MOD) account, which is a type of fixed deposit (FD) account. Unlike in fixed deposits, 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. The balance amount in the MOD account will continue to earn the fixed deposit rates applicable at time of initial deposit, noted the country's largest lender. The account is linked to the savings or current account.
Here are five things to know about SBI's MOD account:
1. The minimum term 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.
2. However, there is no limit for a maximum deposit amount for MOD creation, according to SBI's portal.
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 fixed deposits with effect from August 1. 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||6.8||7.3|
|2 years to less than 3 years||6.7||7.2|
|3 years to less than 5 years||6.6||7.1|
5. SBI's MOD account also offers loan and nomination facility.
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