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IN PICS! SBI Multi Option Deposit Scheme: Check details about the scheme

By Lokmat English Desk | Updated: February 18, 2021 15:26 IST

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At a time when almost all banks are reducing their deposit rates, depositors are looking for options that offer higher returns without undue risk. In a bid to lure such depositors, SBI is giving the option of opening the ‘SBI Savings Plus Account’.
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The Savings Plus Account of SBI is a savings bank account linked to the ‘Multi Option Deposit Scheme’ (MODS), wherein a customer’s surplus fund above a threshold limit from the savings account is transferred automatically to term deposit opened in multiples of Rs 1,000, according to the SBI website.
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Hence, the money from an account holder’s savings account is transferred to a fixed deposit through this scheme. The term deposit tenure ranges from 1 to 5 years.
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The catch with the SBI multi-option deposit scheme is that even though it’s an FD, it allows depositors to withdraw money according to their needs.
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Hence, depositors can withdraw the money according to their needs without completely breaking the bank fixed deposit.
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From the SBI Multi Option Deposit Scheme depositors can withdraw money in multiples of Rs 1,000 at the time of need. Some of the key features of SBI Savings Plus Account includes deposit tenure 1-5 Years, premature withdrawal, ATM card, mobile banking and internet banking, and loan against MOD deposits available.
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While opening the SBI Savings Plus account, an amount will be specified by you – above that threshold, the money will be transferred to the fixed deposit.
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Also, if the amount falls short of the minimum account balance, the deficit is then transferred from the FD so as to maintain the minimum savings account.
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In case of the SBI Multi Option Deposit Scheme, even though it is a type of term deposit, as the account is linked to a savings or current account, the scheme allows premature withdrawal.
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Experts say this gives SBI customers/depositors the option of having a bank fixed deposit account along with the flexibility of premature withdrawal.
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Tags: State Bank Of India
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