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SBI's Multi-Option Deposit Scheme, Here Are 10 Things To Know

State Bank of India aka SBI offers a type of fixed deposit or term deposit scheme called the Multi Option Deposit Scheme (MODS). A fixed deposit is a secure financial instrument offered by banks, which fetch guaranteed returns. Unlike normal term deposits which are fully liquidated anytime you need funds; you can withdraw from a MODS account in multiples of
Rs. 1,000 according to your need, said the country's largest lender. The balance amount in the multi option deposit account continues to earn fixed deposit interest rates applicable at the time of initial deposit.

Here are 10 key things to know about SBI's multi option fixed deposit account:

1. Account linkage: The scheme is linked to SBI's savings or current account, according to the bank's website -

2. Minimum amount: The minimum fixed deposit amount for the multi option deposit account is Rs. 10,000. Any deposits above this amount are required to be in multiples of Rs. 1,000.

3. Maximum amount:  However, there is no upper limit on the amount that can be deposited in this type of fixed deposit account.

4. Minimum tenure: The minimum tenure for which this deposit can be opened is one year.

5. Maximum tenure: For SBI's multi option FD deposit  account, the maximum tenure is five years. 

6. Interest Rate: SBI pays the same interest on a multi option fixed deposit account as a fixed deposit account. SBI revised its interest rates on retail fixed deposits with effect from November 28, 2018. The following FD interest rates are for deposits below Rs. 1 crore:

TenorsRevised For Public w.e.f. 28.11.2018Revised for Senior Citizens w.e.f. 28.11.2018
1 year to less than 2 year6.87.3
2 years to less than 3 years6.87.3
3 years to less than 5 years6.87.3

7. Premature withdrawal: Premature withdrawal is allowed in SBI's multi option deposit account. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, said SBI.

8. Nomination: Nomination facility is available with the MODS account according to the SBI's webiste.

9. Minimum balance: Customers do not need to to maintain a MAB (Monthly Average Balance) in the linked savings bank account.

10. Other features: Loan facilities is also available with the MODS account. TDS (tax deducted at source) is applicable on investment in the Multi Option Deposit Scheme, according to SBI.


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