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New Delhi: (Source - HT Media) State Bank of India (SBI), the largest lender in the country, gives you the option of different types of savings. One of them is fixed deposits (FDs) also known as term deposits. Among fixed deposits, customers can invest in the SBI Multi Option Fixed Deposit Scheme (MODS), Reinvestment Plan or SBI Tax Savings Scheme, 2006. SBI Multi Option Fixed Deposit Scheme (MODS) involves term or fixed deposits linked to the savings or current account of an individual. Unlike normal term deposits, which are fully liquidated anytime you need funds, you can withdraw from an MODS account in multiples of Rs 1,000 according to your fund need. The balance amount in your MODS account will continue to earn the term or fixed deposit interest rates applicable at the time of initial deposit.
A look at all you need to know to open an SBI Multi Option Fixed Deposit Scheme
1. The minimum term deposit amount needed for creating an SBI MODS account is Rs 10,000 and in multiples of Rs 1,000 each thereafter.
2. There is no limit for a maximum term deposit amount for an SBI MODS account.
3. The rate of interest on an SBI MODS account is the same as that applicable on term deposits.
4. The minimum tenor applicable for an SBI MODS account is 1 year and the maximum is 5 years.
5. Premature withdrawal is allowed in an SBI MODS account and for this rules for TDR/STDR (term deposit/special term deposit) are applicable.
Also Read: Explained: How to open SBI zero balance savings account
6. Tax deducted at source (TDS) is applicable on SBI’s Multi Option Deposit Scheme.
7. Loan facility is also available in an SBI MODS account. Further breaking of units when the lien is marked on a particular account is not allowed.
8. Nomination facility is available for an SBI MODS account
9. The customer has to maintain the monthly average balance in the linked savings bank account.
10. You can open an SBI MODS account through OnlineSBI or by visiting your nearest branch.