Typically, when you invest in a Fixed Deposit (FD), your money is locked in until maturity. Breaking the FD early results in a penalty.
However, SBI offers a special FD scheme that eliminates this hassle.
With this scheme, you can keep your money for as long as you want, earn interest, and withdraw funds anytime, even from an ATM. Here’s what makes this SBI FD unique:
What is SBI’s Multi Option Deposit Scheme (MODS)?
SBI’s MODS allows you to earn the same interest as a regular FD but with more flexibility.
The best part is, you can withdraw money before maturity without any penalty, making it more liquid than traditional FDs.
ATM Withdrawal Facility
This FD is linked to your savings or current account, allowing you to withdraw funds directly from an ATM or via cheque, just like a savings account. You can access your FD money anytime with ease.
Partial Withdrawals
Unlike regular FDs where you must withdraw the entire amount, with SBI MODS, you can withdraw money in smaller amounts, starting from ₹1,000.
After any withdrawal, you’ll continue to earn interest on the remaining balance. You can make multiple withdrawals in multiples of ₹1,000 as per your needs.
Interest Rates of SBI MODS
You can invest in this scheme for 1 to 5 years. Interest rates vary depending on the term. Senior citizens also enjoy an additional 0.50% interest. A nomination facility is available as well.
Linked Savings Account Requirements
To use SBI MODS, you must maintain an Average Monthly Balance (AMB) in the linked savings account.
The scheme also offers the auto-sweep feature, where any balance above a set limit is automatically transferred to an FD.
For auto-sweep, the minimum balance should be ₹35,000, and the minimum balance after auto-sweep should be ₹25,000.
How to Open the Account?
You can open an SBI MODS account either online or by visiting the nearest branch. Do note that the interest earned is taxable.
