Multi Option Deposit Scheme: Generally, a penalty is imposed on the investors by any bank for prematurely breaking the FD. There are some such schemes in the market where no penalty is charged for premature breakage of FD. One such FD is State Bank of India’s (SBI) Multi Option Deposit Scheme, also known as SBI MODS.
SBI’s Multi Option Deposit Scheme is a fixed deposit (FD) scheme and is directly linked to the savings and current accounts of the investor. It is quite different from the regular FD and in this you can deposit and withdraw as per your wish.
Features of SBI MODS
What will be the Rate of interest?
In SBI’s MOD Scheme, investors are paid almost the same interest as FD. At the same time, 0.5 percent more interest is given by the bank to senior citizens.
The tenure of SBI’s MOD Scheme varies from one year to five years. Investors can choose the time period as per their convenience.
How to withdraw money
You can withdraw the entire amount in SBI’s Multi Option Deposit Scheme any number of times in multiples of 1000. No limit has been fixed by the bank. Customers can withdraw money through ATM, check book or branch.
Have auto sweep facility?
According to the information available on SBI’s website, you can link the MOD scheme with your savings account through the auto sweep facility. Under the auto sweep facility, you can deposit a minimum of Rs 10,000 in multiples of Rs 1000 in this FD.