SBI Offers Multi-Option Deposit Scheme: 5 Things To Know
SBI (State Bank of India), the country's largest lender, offers the option of opening a multi option deposit scheme (MODS) account under its personal banking portfolio. SBI multi option deposit scheme is a type of fixed deposit or term deposit scheme. A fixed deposit is financial instrument offered by banks and other financial institutions which offers guaranteed returns. Unlike normal term deposits which are fully liquidated anytime you need funds; you can withdraw from a MODS account in multiples of Rs. 1,000 according to your needs, said SBI on its official website, sbi.co.in.
Here are key things to know about SBI multi option deposit scheme:
1. Amount: The minimum fixed deposit amount for opening the multi option deposit account is Rs. 10,000. Any deposits above this amount are required to be in multiples of Rs. 1,000, according to SBI. However, there is no upper limit.
2. Tenure: For SBI's multi option deposit scheme, the minimum tenure is one year and the maximum tenure is five years.
3. Rate of interest: SBI pays the same interest on a MODS account as a fixed deposit account. SBI revised its interest rates on fixed deposits with effect from February 22. FD interest rates for deposits below Rs. 2 crore are:
| Tenors | Revised For Public w.e.f. 22.02.2019 | Revised for Senior Citizens w.e.f. 22.02.2019 |
|---|---|---|
| 1 year to less than 2 year | 6.8 | 7.3 |
| 2 years to less than 3 years | 6.8 | 7.3 |
| 3 years to less than 5 years | 6.8 | 7.3 |
4. Premature withdrawal: Customers also get the facility of premature withdrawal. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, according to SBI.
5. Other facilities: Nomination and loan facilities are also available with SBI's fixed deposit scheme, mentioned the lender on its portal.