How to Open SBI MOD Account Features, Benefits, Interest Rates, etc.

State Bank of India or SBI provides different types of saving accounts like Fixed Deposit, Recurring Deposit, Savings account, etc. One such account is Multi Option Deposit.

A Multi Option Deposit Account is a type of Fixed Deposit account with high liquidity. You get interest on the funds you deposit and you can dissolve the deposit whenever you want.

A traditional FD comes with a fixed tenure of 10-20 years but the MOD account comes with a tenure of 1 year and offers a similar interest rate.

The MOD account is connected to your savings bank account to facilitate your fund management in case your savings account needs overdraft payment requirements.

How to Open SBI MOD Account Features, Benefits, Interest Rates, etc

SBI MOD Interest Rate

The following are the interest rate for the SBI MOD account-

TenureInterest Rate p.a. (General Public)Interest Rate p.a. (Senior Citizen)
7 to 45 days2.90%3.40%
46 to 179 days3.90%4.40%
180 to 210 days4.40%4.90%
211 to less than 1 year4.40%4.90%
1 year to less than 2 years5.00%5.50%
2 years to less than 3 years5.10%5.60%
3 years to less than 5 years5.30%5.80%
5 years to up to 10 years5.40%6.20%

SBI Multi Option Deposit Features

The following are the features for the SBI MOD account-

  • You can open an SBI MOD account with Rs.10,000/- and thereafter can add funds in multiple of Rs.1,000/- with no upper limits
  • The account offers liquidity with an option to dissolve the investment whenever you want
  • It is connected to your savings bank account and facilitates the overdraft facility in case of need
  • You can also avail Loan facility against the SBI MOD deposit
  • The tenure for SBI MOD deposit is a minimum of 1 year and a maximum of 5 years with a premature withdrawal option
  • The interest rates offered in the SBI MOD account varies depending on the tenure but, it is at par with the interest rate offered in the FD account
  • You also have the option to withdraw funds in multiple of Rs.1,000 instead of the full amount and you’ll earn interest based on the latest amount

Drawbacks of SBI MOD

The only drawback about SBI MOD is that your investments are taxable at the source. So, the investment that you make in the account will be taxed and the final amount you get is your principal amount + Interest earned – Tax at source.

How To Apply For an SBI MOD Account?

You have the option to apply for an SBI MOD account both online and offline, however, the online option is much more convenient and faster.

Online

The following are the step by step methods to apply for SBI MOD Account-

Online Net Banking

  • Open the official net banking portal and login to your net banking account using your login credentials
  • After logging in, navigate to the e-Deposit section followed by clicking on “Open Multi Option Deposit”
  • After clicking the button, a page will appear where you have to select the account from where you want to select the savings account you want to connect your MOD account with
  • Now, provide the amount you want to deposit followed by entering your debit card details to make payments
  • You also have to select the tenure of the account as per your needs selecting interest payout cycle i.e. Monthly, or Quarterly, and tick the terms and condiction checkbox
  • Now, click on the confirm button
  • After clicking on the confirm button, a reference number will be generated which you have to keep safe
  • Now, in the next step, you have to make the payment by entering a High-security password sent on your registered mobile number

SBI YONO App

  • Open the SBI YONO app and login to your account using your login credentials
  • After logging in, navigate to the e-Deposit section followed by clicking on “Open Multi Option Deposit”
  • After clicking the button, a page will appear where you have to select the account from where you want to select the savings account you want to connect your MOD account with
  • Now, provide the amount you want to deposit followed by entering your debit card details to make payments
  • You also have to select the tenure of the account as per your needs selecting interest payout cycle i.e. Monthly, or Quarterly, and tick the terms and condiction checkbox
  • Now, click on the confirm button
  • After clicking on the confirm button, a reference number will be generated which you have to keep safe
  • Now, in the next step, you have to make the payment by entering a High-security password sent on your registered mobile number

Offline

You can visit the SBI Bank branch and ask the bank representative for an opening form for SBI MOD. Fill the form with correct details and submit the form, make sure you have mentioned your savings account details correctly. After submitting the form, you can make the payment from your account or by cash. After making the payment, your account will be opened and you’ll be able to operate the SBI MOD account.

FAQ

Is SBI MOD investment taxable?

Yes, the investment that you make in the SBI MOD account is taxable.

What is the interest rate offered by SBI for the SBI MOD account?

The interest rate offered by SBI for the SBI MOD account depends on the tenure and can range from 2.90 to 6.20% per annum.

Can I dissolve the SBI MOD account online?

No, you have to visit the bank branch to dissolve the SBI MOD account. This cannot be done online.

Can I top up more funds in the existing account?

Yes, you can top up more funds into your existing SBI MOD account in multiple of Rs.1,000/- with no upper limits.

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