FD Withdrawal Rules: If you invest in an FD, then that Fixed Deposit has a fixed maturity date. If you break the FD before that date, then you have to pay a penalty. But there is also an FD in SBI which has no lock-in period. You can take advantage of FD interest on your investment in it and can withdraw the FD money anytime if needed. Know the special things related to this FD.
The name of the scheme is SBI (MODS)
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. 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.
Facility of withdrawing money from ATM
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 depositor’s savings or current account. In such a situation, depositors get the facility to withdraw the required amount from the FD anytime through ATM.
It is not necessary to withdraw the entire amount
Usually when you break an FD, you withdraw the entire amount, but in SBI (MODS) it is not necessary to do so. You can withdraw the money as per your requirement and let the remaining amount remain in the account. The remaining amount will continue to earn FD interest.
You can deposit money in multiples of Rs 1,000
In this, money can be deposited in multiples of 1,000 rupees and can also be withdrawn in multiples of 1,000 rupees only. It is not that the facility of withdrawing money is for one time, you can withdraw money many times in multiples of 1000 rupees.
These are the interest rates of SBI (MODS)
In SBI (MODS) you can deposit money for a period of one year to 5 years. Interest rates vary according to the year. FDs of 1-2 years get 6.8% interest, 2-3 years get 7% interest and 3-5 years get 6.75% interest. Senior citizens get an additional interest of 0.50%. Nomination facility is also available in this scheme.
Minimum balance is required in linked savings account
You can also get this account transferred to another branch. Keep in mind that it is necessary to maintain a minimum monthly average balance in the savings account linked to the 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. You have to pay tax on the interest received in this.
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