Usually when you invest in an FD, you have to keep your money deposited till maturity. If you break it in between, you have to pay a penalty.
But SBI runs such an FD scheme for its investors, in which there is no hassle of lock-in period. You can keep the deposit in it for as long as you want and keep taking the interest on the FD and whenever you need, you can withdraw money from the ATM quickly. Know the special things related to this FD of SBI.
Know what this scheme is
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 to withdraw 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 money according to your need in multiples of 1000 rupees i.e. 1,000, 2,000, 5,000, 10,000 rupees. After the amount withdrawn, you will continue to get FD interest on the remaining amount. 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. The interest rates vary according to the year. Like normal FD, senior citizens also get an additional interest of 0.50%. Nomination facility is also available in this scheme. However, even after taking this scheme, it is necessary to maintain Average Monthly Balance (AMB) in the savings account.
Minimum balance required in linked savings account
You can also get this account transferred to another branch. MOD account also has the facility of auto-sweep. A limit has to be set in it, as soon as your deposit goes above that limit, the bank deposits that extra fund in FD through auto-sweep. The minimum threshold balance for auto sweep should be Rs 35,000 and the minimum resultant balance should be Rs 25,000. If you also want to take advantage of this facility of SBI, then you can open the account online or by going to any nearest branch. You have to pay tax on the interest received in this.
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