If you are looking for a scheme in which you get guaranteed interest like FD and you can use the money whenever you need, then SBI (MODS) can be a great option.
Fixed Deposit has been a reliable means of investment for people for years. The reason for this is that in FD the investor gets guaranteed returns at a fixed time. But there is a condition in FD, that is, you cannot break it before it matures. If you do this, you have to pay a penalty. But the country’s largest bank SBI also has such an FD, in which you will get the same interest as FD, and you can also withdraw the FD money at any time of need. Know about this special scheme of State Bank of India.
Know the benefits of SBI MODS scheme
We are talking about SBI (MODS) scheme. Its full name is SBI Multi Option Deposit Scheme. In this scheme the depositor gets the same interest as on other FDs. Any person can open an FD account in SBI with an investment of Rs 10,000. The advantage of this scheme is that your money always remains liquid, that is, you can withdraw money anytime before the maturity of the FD without paying any penalty. You can withdraw this money through ATM or cheque, just like you withdraw money from a savings account. Actually, this FD scheme is linked to the savings or current account of the depositor. In such a situation, depositors get the facility to withdraw the required amount from FD through ATM at any time.
It is not necessary to withdraw the entire amount
Usually, when you break an FD, you withdraw its entire amount, but it is not necessary to do so in SBI (MODS). You can withdraw money as per your need and leave the remaining amount in the account. FD interest will continue to be available on the remaining amount. In this, money can be deposited in multiples of Rs 1,000 and can be withdrawn in multiples of Rs 1,000 only. It is not that the facility to withdraw the amount is for one time only, you can withdraw the money multiple times in multiples of Rs 1000.
These are the interest rates of SBI (MODS)
You can deposit money in SBI (MODS) for one year to 5 years. Interest rates vary depending on the year. Interest is available on FD of 1-2 years at 6.8%, on FD of 2-3 years it is 7% and on FD of 3-5 years it is 6.5%. Senior citizens get additional interest of 0.50%. Nomination facility is also available in this scheme.
Loan facility
Like normal FD, you also get the facility of loan on SBI MODS account. Apart from this, you can also get this account transferred to another branch. Keep in mind that it is necessary to maintain minimum monthly average balance in the savings account linked to MOD account. If you also want to take advantage of this facility of SBI, then you can open the account online or by visiting any nearest branch. SBI MOD account can be opened for a minimum period of 1 year and a maximum of 5 years. You have to pay tax on the interest received in this.
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