SBI Multi-Option Deposit Scheme: From Interest Rate To Tenure, All Explained Here
State Bank of India's multi-option deposit scheme (MODS), a type of fixed deposit (FD) or term deposit scheme, is linked to the savings or current account of an individual. A fixed deposit is a secure financial instrument offered by banks, which fetch guaranteed returns. Unlike normal fixed deposits which are fully liquidated anytime you need funds; you can withdraw in multiples of Rs 1,000 from MODS account, according to your need, mentioned State Bank of India (SBI) on its corporate website- sbi.co.in.
(Also read:Â SBI Public Provident Fund (PPF) Account: How To Invest, Interest Rates, Tax Benefits)
Here are key things to know about SBI's multi-option deposit scheme (MODS):
Minimum/maximum investment
The minimum term or fixed deposit amount needed for MOD creation is Rs 10,000. Any deposits above this amount are required to be in multiples of Rs 1,000. However, there is no limit for a maximum term deposit amount for MOD creation, according to country's largest lender's website.
Tenure
For SBI's multi option deposit scheme, the minimum tenure is one year and the maximum tenure is five years.
(Also read: What Is SBI Annuity Deposit Scheme? Key Things To Know)
Interest rates
SBI pays the same interest on a multi option fixed deposit account as on a fixed deposit account. SBI revised its interest rates on retail fixed deposits with effect from November 28, 2018. 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 |
(As mentioned on SBI's website)
Tax Deducted At Source (TDS)
Tax deducted at source (TDS) is applicable on SBI's multi option deposit scheme. The government has in Interim Budget 2019-20 proposed to increase the limit for tax deduction at source (TDS) on interest income earned on bank deposits from Rs 10,000 to Rs. 40,000 per annum. The proposed change in TDS rules will come into effect from April 1, 2019.
Premature withdrawal
Premature withdrawal is allowed in SBI's multi option deposit account. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, mentioned SBI.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
