SBI runs such an FD scheme for its investors, in which there is no hassle of a lock-in period. You can keep the deposit in it as long as you want and keep taking the interest of the FD and whenever you need, withdraw money from the ATM instantly.

Usually, when you invest in an FD, you have to keep your money deposited till maturity. If you break it in between, then 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 as long as you want and keep taking the interest of the FD and whenever you need, withdraw money from the ATM instantly. Know the special things related to this SBI FD.

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 is always 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 its entire amount, but it is not necessary to do so in SBI (MODS). 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 After the amount withdrawn, you will continue to get FD interest on the remaining amount.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 from one year to 5 years. Interest rates are different according to the year. Like normal FD, senior citizens also get 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 transfer this account 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 you can open it by visiting any nearby branch. You have to pay tax on the interest received in this.