State Bank of India (SBI), the largest lender of the country, offers a type of fixed deposit or term deposit scheme called the Multi Option Deposit Scheme (MODS). The scheme is linked to SBI's savings or current account, according to SBI's website - sbi.co.in. Unlike in usual fixed deposit accounts, which are fully liquidated, MODS account holders can withdraw in multiples of Rs. 1,000 as per his/her needs. The balance amount in the multi option deposit account continues to earn fixed deposit interest rates applicable at the time of initial deposit.
Here are 5 key things to know about SBI's multi option fixed deposit account:
1. Minimum amount: The minimum fixed deposit amount for the multi option deposit account is Rs. 10,000. Any deposits above this amount are required to be in multiples of Rs. 1,000. However, there is no upper limit on the amount that can be deposited in this type of fixed deposit account
2. Tenure: The minimum tenure for which this deposit can be opened is one year whereas the maximum term for SBI's multi option FD deposit account is five years.
3. Interest Rate: SBI pays the same interest on a multi option fixed deposit account as a fixed deposit account. SBI revised its interest rates on retail fixed deposits with effect from July 30. The following FD interest rates are for deposits below Rs. 1 crore:
|Term||Interest rate for general public w.e.f. 30.07.2018||Interest rate for senior citizen w.e.f. 30.07.2018|
|1 year to less than 2 year||6.7||7.2|
|2 years to less than 3 years||6.75||7.25|
|3 years to less than 5 years||6.8||7.3|
4. Premature withdrawal: Premature withdrawal is allowed in SBI's multi option deposit account. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, said SBI.
5. Other features: Nomination and loan facilities are available with the MODS account. One also needs to maintain MAB (Monthly Average Balance) in the linked savings bank account.