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Whenever individuals invest in a fixed deposit, they cannot withdraw money before maturity without charges in case of a financial emergency. Thus, there is another fixed deposit scheme called the MOD or Multi Option Deposit Scheme for such a situation. This scheme allows the depositor to withdraw money in multiples of Rs.1000. In this article, we will discuss in detail the SBI MOD Scheme (Multi Option Deposit Scheme) 

What is SBI MOD Scheme?

SBI MOD Scheme refers to SBI Multi Option Deposit Scheme. These are a form of term deposits that are linked to the individual savings or current account. In a standard term deposit, one can liquidate whenever they need funds but on specific charges. On the other hand, the depositor can withdraw from the SBI MOD account in the multiples of Rs.1000 whenever funds are required. The balance amount in the SBI MOD account will continue to earn interest at the interest rate applicable at the time of the initial deposit. 

One can create an SBI Multi Option Deposit Account online by visiting the SBI portal or offline by physically visiting the branch. 

Features of the SBI MOD Scheme?

The following are the key features of the SBI MOD Scheme.

  • Tenure: The tenure to invest in this scheme ranges from a minimum period of 1 year to a maximum period of 5 years. 
  • Type of Account: The SBI MOD account is a form of term deposit (TD) account or special term deposit (STD) account.
  • Minimum Deposit Amount: The minimum term deposit amount required to open a MOD account is Rs.10,000. However, there is no maximum amount of investment under this scheme. One can use FD calculator to estimate their returns from the SBI MOD Scheme.
  • Interest Rate: The rate of interest offered for the SBI MOD scheme is similar to the rates of SBI term deposits. Currently, the interest rate for term deposits ranges from 5.00% – 5.30%. For senior citizens, they earn preferential rates, i.e. 0.50% more than the standard deposit rates. Compare fixed deposit interest rates for all banks before you invest.
  • Nomination Facility: The depositors can nominate their beneficiaries under this scheme.
  • Tax: The interest earned on a monthly payout fixed deposit account is taxable. Also, the tax rate depends on the individual income tax slab rates. Furthermore, TDS is also applicable on the interest earned for more than Rs.10,000 in a financial year. 
  • Loan against FD: The additional benefit is that one can avail loan against their MOD account. Thus, this is to help depositors meet their liquidity requirements.
  • Premature Withdrawal: SBI bank also permits premature withdrawal under this scheme. However, there are certain charges for closure before maturity. For deposit accounts up to Rs. 5.00 lakhs, the penalty for premature withdrawal is 0.50% for all tenures. Simultaneously, for deposits above Rs. 5.00 lakhs but below Rs. 1 crore, the penalty for premature withdrawal is 1%. When the SBI MOD account is broken, the interest is paid with a penalty for that period on that particular amount. The remaining amount continues to earn the actual interest rate. Furthermore, no interest is paid on deposits that remain for a period of less than 7 days. 
  • Transferability: The depositor can transfer the account from one branch to another anytime 

Who can Invest in SBI MOD Scheme?

The following are the persons who are eligible to invest in SBI MOD Scheme –

  • Resident Individuals – Single or jointly
  • Minor – themselves through their Guardian
  • Karta of HUF (Hindu Undivided Family)
  • Firm
  • Company
  • Local Bodies 
  • Any government department

SBI MOD Interest Rates 2021

The tenure for the SBI MOD scheme ranges from 1 year up to 5 years. The following table shows the current interest rates for SBI MOD Scheme – 

TenureRegular Interest RatesSenior Citizen Interest Rates
1 year to less than 2 year5.005.50
2 years to less than 3 years5.105.60
3 years to less than 5 years5.305.80
5 years and up to 10 years5.406.20
Note: Interest Rates are applicable as on 08/01/2021

Frequently Asked Questions 

Is there any cut off time for creating e-TDR/e-STDR (MOD) online?

Yes, there is a cut off timing for creating e-TDR/e-STDR online from 8:00 AM IST to 8:00 PM IST. Any request initiated beyond this period will be scheduled for the next opening hours. 

How can I add nominees in SBI MOD a/c?

The account holder can add the nominee while opening the e-TDR/e-STDR (MOD). Also, they will be provided with an option to retain the same nominee for the MOD account as appearing in their savings/current account from which the MOD will be funded. 

Can I transfer the maturity money on SBI MOD to my bank accounts?

No, the maturity amount or the amount payable before maturity will be transferred only to the savings/current account from which the SBI MOD account was funded. 

Is a nomination facility available for an SBI MOD scheme?

Yes, a nomination facility is available under this scheme while opening the SBI MOD account.  

Can I close MOD accounts opened at the branch through Internet Banking?

No, one cannot close the MOD account through internet banking. They have to physically visit the branch to complete the account closing process. 

Can I make a premature withdrawal from my MOD account?

Yes, the depositor can opt for premature withdrawal from the SBI MOD account. However, one should know the rules TDR and STDR for such withdrawals.

What is the minimum amount for a term deposit?

One can open a term deposit account with a minimum amount of Rs.10,000 with increments in multiple of Rs.1000. However, the minimum and maximum amount vary for different products. 

How can I generate MOD account advice? 

One can simply log in to their SBI internet banking to generate MOD account advice. After logging in, click on the ‘My account & Profile’ tab. Select ‘Deposit Account’ and click on ‘click here for last 10 transactions’. Next, click on ‘View e-TDR/e-STDR under MOD’. A new window will pop up with the MOD advice/receipt. One can save and download it as a PDF.

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