State Bank of India Raises Multi Option Deposit Threshold to ₹50,000 - Check Details
India’s largest public sector bank, State Bank of India (SBI), has revised the minimum threshold limit for its Multi Option Deposit (MOD) scheme. The new limit has been increased from ₹35,000 to ₹50,000 under the Auto Sweep facility linked to savings accounts.
What Is SBI’s Multi Option Deposit (MOD) Scheme?
The Multi Option Deposit scheme is a unique term deposit facility that allows customers to earn higher interest on surplus funds. When the balance in a savings account crosses the threshold limit, the excess amount is automatically transferred to a MOD account, where it earns interest like a fixed deposit.
How the Auto Sweep Facility Works
Who Can Open an SBI MOD Account?
Tenure and Interest Benefits
Nomination Facility for MOD Accounts
Nomination details from the linked savings account automatically extend to the MOD account. Customers can also update or change nominations as per their preference.
Key Benefits of SBI MOD Scheme
With the revised threshold of ₹50,000, SBI’s Multi Option Deposit scheme becomes even more rewarding for customers who wish to maximise returns on their idle funds without compromising liquidity. Offering flexibility, safety, and higher interest, the MOD account continues to be a smart savings-plus-investment choice for SBI customers.
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What Is SBI’s Multi Option Deposit (MOD) Scheme?
The Multi Option Deposit scheme is a unique term deposit facility that allows customers to earn higher interest on surplus funds. When the balance in a savings account crosses the threshold limit, the excess amount is automatically transferred to a MOD account, where it earns interest like a fixed deposit.
How the Auto Sweep Facility Works
- Auto Sweep-In: Surplus funds above ₹50,000 from a linked savings account are converted into a term deposit.
- Reverse Sweep: If the savings account balance falls short, funds are automatically withdrawn from the MOD account to honour transactions.
- Flexibility: This ensures liquidity while providing the benefit of higher returns.
Who Can Open an SBI MOD Account?
- Individuals (single or joint)
- Minors (independently or through a guardian)
- This makes the scheme accessible to a wide customer base, from young savers to families.
Tenure and Interest Benefits
- Minimum tenure: 1 year
- Maximum tenure: 5 years
- Interest is compounded quarterly and credited accordingly.
- Senior citizens enjoy additional interest benefits, though super senior citizens do not receive extra rates.
- In case of premature withdrawal, a penalty applies, but the remaining balance continues to earn interest at the original rate.
Nomination Facility for MOD Accounts
Nomination details from the linked savings account automatically extend to the MOD account. Customers can also update or change nominations as per their preference.
Key Benefits of SBI MOD Scheme
- Higher interest earnings on idle funds
- Hassle-free liquidity through reverse sweep
- Safe and flexible investment option
- Suitable for individuals and families looking for balance between savings and returns
With the revised threshold of ₹50,000, SBI’s Multi Option Deposit scheme becomes even more rewarding for customers who wish to maximise returns on their idle funds without compromising liquidity. Offering flexibility, safety, and higher interest, the MOD account continues to be a smart savings-plus-investment choice for SBI customers.
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