Generally, fixed deposit (FD) subscribers are required to pay a premature withdrawal penalty if they break their FD before it matures. However, some FDs allow subscribers to withdraw money without any penalty. One such FD is SBI’s Multi Option Deposit Scheme (SBI MODS).
SBI’s Multi Option Deposit Scheme is a term deposit that is linked to one’s savings or current accounts. Unlike normal term deposits, you can withdraw money whenever you want without paying a penalty.
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Know some of the key features of this scheme:
Eligibility for the scheme
Resident individuals singly or jointly, minor (himself/herself or through his/her guardian), Karta of Hindu Undivided Family or HUF, firm, company, local bodies and any government department can open the SBI MODS account.
Interest rate charged
The interest rate of SBI Multi Option Deposit Scheme will be similar to regular fixed deposit rates offered by the State Bank of India. Senior citizens can earn 0.50 per cent more than the applicable rates of interest.
Tenure
The tenure for SBI Multi Option Deposit Scheme will be one to five years.
How to withdraw from SBI Multi Option Deposit Scheme?
Under SBI Multi Option Deposit Scheme, deposits are entirely liquid. According to the SBI website, customers can withdraw from the account in multiples of Rs 1,000. There is no restriction on the withdrawal limit. Customers can withdraw via an ATM, cheque or bank branch.
Is auto sweep facility available?
As per the SBI website, the provision of Multi Option Deposit Schemes are also available through auto sweep facility in savings plus accounts. For auto sweep facility, the minimum threshold balance and minimum resultant balance should be Rs 35,000 and Rs 25,000 respectively. Minimum sweep amount of Rs 10,000 in multiples of Rs 1,000.
