If you break your Fixed Deposit (FD) before the maturity date, investors will have to pay a penalty of premature withdrawal. However, some banks offer FDs that allow the investor to withdraw from their investments without penalty. One such bank that offers this type of FD is state Bank of India ,State Bank Of India,

SBI’s Multiple Choice Deposit Scheme (SBI MODS) is a fixed deposit that is linked to one’s savings or current accounts. Unlike normal fixed deposits, you can withdraw money whenever you want without any penalty.

Here are the features SBI Multi Option Deposit SchemeAccording to SBI website

Who can invest in SBI Multi Option Deposit Scheme?
Resident Individuals singly or jointly, minors (in person or through their guardian), Karta of Hindu Undivided Family or HUF, Firm, Company, Local Body and any Government Department can open SBI MODS Account.

What is the interest rate?
The interest rate of SBI Multi Option Deposit Scheme will be similar to the regular fixed deposit rates offered by State Bank of India. Senior citizens can earn 0.50 percent more than the applicable interest rates.

SBI FD Interest Rates (Less than Rs.2 crore) by August 13, 2022

Source: SBI Website

Read also:
SBI hikes FD interest rates by up to 15 basis points for these tenors

What is tenure?
The tenure of SBI Multi Option Deposit Scheme will be from one to five years.


How to withdraw from SBI Multi Option Deposit Scheme?

Under SBI Multi Option Deposit Scheme, the deposits are completely liquid. According to the SBI website, customers can withdraw from the account in multiples of Rs 1,000. There is no restriction on the withdrawal limit. Customers can withdraw through ATM, Check or Bank branch. Keep in mind that if you partially withdraw money from SBI Multi Option Deposit Scheme account, you will continue to earn the FD interest rate that was applicable on your balance at the time of initial deposit. Also, investors should ensure that they maintain an average monthly balance in their savings or current account linked to SBI Multi Option Deposit Scheme.

Is auto sweep facility available?

According to SBI’s website, the provision of Multi Option Deposit Scheme through Auto Sweep facility is also available in the Savings Plus account. For auto sweep facility, the minimum limit balance and minimum resulting balance should be Rs.35,000 and Rs.25,000 respectively. Minimum sweep amount of Rs 10,000 in multiples of Rs 1,000. This restriction on threshold limit will be applicable only for availing Auto Sweep facility. Customers can open Individual Standalone Multi Option Deposit Scheme (including e-MOD) with a minimum deposit of Rs 10,000, irrespective of the threshold level.

Other points worth noting

• Nomination facility will be available for those opting for SBI Multi Option Deposit Scheme.
• Tax Deducted at Source (TDS) will be levied at the prevailing rate applicable for regular FDs.