SBI Multi Option Deposit Scheme: If you want to save in FD, but also want that there should be no lock-in period in it, that is, you can withdraw your funds whenever you want without paying any fine. So, State Bank of India (SBI) Special Multi Option Deposit Scheme (MODS) is the best option for you.
There are two big benefits of this scheme. First, in this you get interest equal to FD. Second, in this your money always remains liquid, that is, you can withdraw money even before the maturity of the FD without paying any penalty. With this, like a savings account, you can withdraw money by going to ATM, check or branch. This is a term deposit which you can open by linking it with your savings account or current account.
Interest Rates (%) in SBI Multi Option Deposit Scheme
| Time period | Ordinary citizens | Senior citizen |
| 1 year to 2 years | 6.80 | 7.30 |
| 2 years to 3 years | 7.00 | 7.50 |
| 3 years to 5 years | 6.50 | 7.00 |
Source: SBI (Last Updated 12 April 2023)-
Special things related to Multi Option Deposit Scheme (MODS)
- In this scheme, you can withdraw money from your deposit in multiples of Rs 1000 i.e. Rs 1,000, 2,000, 5,000, 10,000.
- After the amount withdrawn, you will continue to get the same interest as FD on the remaining amount.
- You can withdraw any amount you want from this scheme whenever you want. Also, there is no limit on withdrawal of money, that is, you can withdraw money as many times as you want.
- In this scheme, money can be deposited for one year to 5 years.
- On the interest amount received from this, you will have to pay Tax Deduction at Source (TDS) at the prevailing rate.
- This scheme also has the facility of nomination, that is, you can add a nominee for this scheme.
- However, even after taking this scheme, it is necessary for you to maintain Average Monthly Balance (AMB) in the savings account.
Auto Sweep Facility
MOD account also has the facility of auto-sweep. This means you have to set a limit in it. As soon as your deposit goes above that limit, the bank deposits those additional funds into the FD through auto-sweep.
On this additional deposited FD amount, you get the same interest as a normal term deposit. In this, the minimum threshold balance for auto sweep should be Rs 35,000 and minimum resultant balance should be Rs 25,000.
Here minimum threshold balance- the limit beyond which your money is deducted and deposited for FD. Whereas Minimum Resultant Balance – The amount that is left in your account after auto sweep. According to this, Rs 10,000 will be deposited in your FD.
You can invest in SBI ‘Amrit-Kalash’ scheme till 31st December
State Bank of India (SBI) has extended the last date for investing in its special fixed deposit (FD) scheme Amrit Kalash. Now you will be able to invest in it till 31 December 2023. Earlier its last date was 15th August. Under this scheme, senior citizens are being given 7.60% annual interest on FD and others are being given 7.10% interest.
How much interest is SBI giving on FD of how many years?
| Duration | Ordinary citizens | Senior citizen |
| 1 year | 6.80% | 7.30% |
| 2 year | 7.00% | 7.50% |
| 3 year | 7.50% | 7.00% |
| 5 year | 6.50% | 7.00% |
Canara Bank changes FD interest rates
Canara Bank has revised the interest rates on fixed deposits i.e. FD of less than Rs 2 crore. After the change in interest rates, the bank is offering 4% to 7.25% interest on FD to common citizens and 4% to 7.75% to senior citizens on FDs of 7 days to 10 years. Before this, recently Axis Bank has also changed the interest on FD.
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