SBI's Multi-Option Deposit Scheme: Interest Rate, Maturity Period And Other Details
SBI or 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 a secure financial instrument offered by banks which fetches 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, according to the bank's website. The balance amount in the multi option deposit account continues to earn fixed deposit interest rates applicable at the time of initial deposit.
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, according to SBI. However, there is no upper limit. For SBI's Multi Option Deposit Scheme, the minimum tenure is one year and the maximum tenure is five years.
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 in November. The following FD interest rates are for deposits below Rs. 1 crore:
| Tenors | Revised For Public w.e.f. 28.11.2018 | Revised for Senior Citizens w.e.f. 28.11.2018 |
|---|---|---|
| 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 |
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.
Nomination and loan facilities are also available with SBI's fixed deposit scheme, the bank noted.