State bank of India (SBI) is the largest lender in the country in terms of asset volume and customer count. It keeps offering innovative products like the SBI MOD account (multi-option deposit scheme), which is a term deposit scheme that is linked to the savings or current account of an individual.
Unlike the traditional term deposits, the State Bank of India MOD comes with a partial withdrawal amount. One can thus also earn an interest on the MOD balance in SBI at the designated rate.
Given below are the SBI MOD features, current interest rates and eligibility.
The SBI Multi Option Deposit Scheme is a deposit scheme offered by SBI. These are term deposits that are linked to a person's personal savings or checking account. A normal term deposit allows you to liquidate whenever you need money, but at a cost.
While, in case of MOD balance in SBI, the depositor can withdraw money from the account in multiples of Rs.1000 anytime during their need. The interest rate on the MOD account balance will remain the same as it was at the time of the first deposit. An SBI Multi Option Deposit Account can be opened either online through the SBI portal or in person at a branch.
Mentioned below are the features of SBI Multi Option Deposit Scheme:
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Amount of Deposit for the Scheme: |
The minimum amount of investment in the scheme is Rs. 10,000, and if further deposits are being made, they need to be multiplied by R. 1,000. Also, the bank has not assigned an upper limit on the amount that can be invested in SBI MO. |
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SBI MOD Balance Interest Rate: |
The minimum interest rate that could be earned with the scheme is 2.90% for a year, and the maximum interest that could be earned is 5.40% for a year on the deposited amount. Also, the interest rates depend on the tenure of your deposit and the amount that you decide to deposit. |
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Investment Tenure: |
The minimum period of investment for the scheme could be for a year, and the maximum tenure for MOD is five years, which is different from other fixed deposit schemes. |
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Taxes on SBI MOD Interest Rates: |
The taxes can be deducted at the source when the interest earned on the deposit is known to be more than Rs. 10,000 during a financial year. |
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Loan Opportunity Against MOD Balance in SBI: |
You can also get a loan against the amount that is available in the account. |
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Renewability of the Scheme: |
The scheme cannot be renewed after a period of 5 years. |
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Transfers: |
Your SBI MOD account can be transferred from one branch to another easily. |
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Option of Nomination: |
You will also get to nominate someone for the deposit. |
The SBI MOD has the same eligibility requirements as all other Fixed Deposits. This is a product that is offered to all Indian residents, as well as non-resident Indians, on occasion. This deposit may be available to HUFs, companies, organizations, and a variety of other individuals.
The current interest rate for State Bank of India MOD as per the period of investment is provided in the table below:
|
Period of Investment |
Interest Rates for General Customers |
Interest Rates for Senior Citizens |
|
7 days - 45 days |
3% |
3.50% |
|
46 days - 179 days |
4.50% |
5% |
|
180 days - 210 days |
5.25% |
5.7% |
|
211 days - 364 days |
5.75% |
6.25% |
|
1 year - 1 years 364 days |
6.80% |
7.30% |
|
2 years - 2 years 364 days |
7% |
7.50% |
|
3 years - less than 5 years |
6.50% |
7% |
|
5 years - 10 years |
6.50% |
7.50% |
Senior folks can earn 0.50% more than the current interest rates with this fixed deposit. Depositors who work for SBI or who have retired from the company earn interest at a rate that is 1% higher than the current rates.
How to Open an SBI MOD Account?
You could open your State Bank of India MOD account right from where you are, through the internet, and the steps of the procedure are written below:
Step 1: Log in to the SBI App or portal online.
Step 2: Open the FD section and click on e-TDR/e-STDR (FD).
Step 3: Now - under the option of MOD, choose e-TDR/e-STDR and then click on proceed.
Step 4: Choose the details such as debit account number, MOD, deposit tenure, tenure for MOD, and then click on submit.
Step 5: Lastly, you will have to confirm your opening request for SBI MOD.
State Bank of India customers can check their MOD balance in SBI by sending a text - “MODBAL” to 919220055222.