SBI MOD (Multi Option Deposit) Scheme

The SBI Multi Option Deposit (MOD) Scheme is designed to offer depositors flexibility while earning competitive fixed deposit rates. Here’s a complete guide to understanding this scheme, its features, and how it works.

What is the SBI MOD Scheme?

The SBI MOD (Multi Option Deposit) is a type of term deposit linked to your savings or current account. It provides the dual benefits of earning fixed deposit interest rates and offering liquidity. Depositors can withdraw funds in multiples of ₹1,000 as needed without closing the entire deposit.

SBI MOD Interest Rates (2024)

Tenure	Regular Interest Rate	Senior Citizen Interest Rate
1 year to less than 2 years	5.00%	5.50%
2 years to less than 3 years	5.10%	5.60%
3 years to less than 5 years	5.30%	5.80%
5 years to 10 years	5.40%	6.20%

Features of the SBI MOD Scheme

1. Tenure:

   • The investment tenure ranges from 1 to 10 years.

2. Minimum Deposit Amount:

   • ₹10,000 is the minimum deposit required to open an account.

   • Additional deposits can be made in multiples of ₹1,000.

3. Flexibility for Withdrawals:

   • Partial withdrawals are allowed in multiples of ₹1,000 without impacting the remaining deposit.

4. Interest Rates:

   • The interest rates are similar to SBI’s regular term deposits.

   • Senior citizens enjoy an additional 0.50% interest rate.

5. Nomination Facility:

   • Depositors can nominate beneficiaries under this scheme.

6. Taxation:

   • Interest earned is taxable as per the depositor’s income tax slab.

   • TDS (Tax Deducted at Source) is applicable if interest exceeds ₹40,000 annually (₹50,000 for senior citizens).

7. Loan Against MOD:

   • You can avail of loans or overdraft facilities against the MOD deposit.

8. Premature Withdrawal:

   • Permitted with a penalty.

   • Deposits up to ₹5 lakh: 0.50% penalty.

   • Deposits above ₹5 lakh: 1% penalty.

9. Transferability:

   • MOD accounts can be transferred across SBI branches.

Who Can Open an SBI MOD Account?

Eligible depositors include:

• Resident individuals (singly or jointly)

• Minors (via guardians)

• Karta of a Hindu Undivided Family (HUF)

• Companies, firms, and local bodies

• Government departments

Advantages of the SBI MOD Scheme

• Liquidity: Withdraw specific amounts without breaking the entire deposit.

• Competitive Interest Rates: Earn fixed deposit-level returns.

• Loan Facility: Meet financial emergencies without withdrawing funds.

• Transfer Options: Conveniently move the account between branches.

How to Open an SBI MOD Account?

1. Online Process:

   • Log in to SBI’s net banking or mobile banking platform.

   • Navigate to the ‘Fixed Deposit’ section and select ‘Multi Option Deposit.’

   • Fill in the required details and confirm the deposit.

2. Offline Process:

   • Visit your nearest SBI branch with the necessary documents.

   • Fill out the MOD account application form and submit it along with the deposit amount.

Frequently Asked Questions

1. Is premature withdrawal allowed? Yes, with applicable penalties depending on the deposit amount and tenure.

2. Can I open a joint MOD account? Yes, joint accounts are allowed.

3. Are there any tax benefits? The scheme does not offer tax benefits. Interest income is taxable.

4. Can I transfer my MOD account to another branch? Yes, MOD accounts can be transferred easily between SBI branches.

The SBI MOD scheme is ideal for individuals seeking a blend of fixed deposit returns and easy access to funds. With flexible withdrawal options and competitive interest rates, it is a reliable choice for both short-term and long-term financial planning.