New Delhi: In all types of Savings Schemes, Fixed Deposits are the most preferred investment option of the people. People of all ages like this method of saving. The biggest reason for this is that it is safer and less risky than other schemes. One can also invest in it for the short to long term. However, the biggest problem with FD is that if money is needed, it has to be broken, even if the need is a small amount of money. Due to this you get a low-interest rate and have to pay a penalty. To get rid of this problem, the State Bank of India (SBI) has brought a special FD scheme.
Know what is multi option deposit scheme
In SBI Multi Option Deposit Scheme MODS, you can withdraw as much money as you need without breaking FD.
Get these facilities
SBI MODS scheme is like a term deposit, but it is linked to the savings or current account of the account holder. The advantage of this is that you can withdraw money from it anytime if needed. It has the facility of premature withdrawal. However TDS is applied on this. If the depositor wants to withdraw money from the linked account and does not have that much money in his account, then he can withdraw money from the MODS as well. Money can be withdrawn in 1000 rupees or its multiples.
Know what is special in the scheme
- SBI multi-option deposit scheme has to deposit at least 10,000 rupees. After this, you can deposit more rupees in multiples of 1000 rupees in it. There is no maximum limit for depositing money in it.
- SBI MOD scheme can be withdrawn through ATM also. After withdrawing money from the MOD, the fixed interest on FD will continue to be earned on the amount of money left.
- MODS gets the same amount of interest as SBI’s other FDs.
- In this scheme, the facility of taking loans and nominees is available. It can be transferred from one branch of SBI to another branch.
- The minimum monthly average balance in the Linked Savings account is compulsory for the customer who holds MOD. It has to keep a minimum balance of 3000 rupees. When the balance is low, MODS is broken and credited to the account.
- Individual, joint, minor, firm, company, the local body can invest in this scheme.
- Like SBI FD, here too, interest will be available at the rate of 2.9% to 5.9%. These rates are effective from 8 January 2021.
- On FD up to 5 lakhs, if you withdraw money before time, then the penalty of 0.50% will be levied. This penalty will be 1% on FDs between 5 lakh and 1 crore. There is no interest on deposits less than 7 days.
