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SBI fixed deposit scheme ! Without breaking FD, you can withdraw money according to need

The biggest problem with FD is that if money is needed, it has to be broken, even if the need is a small amount of money. Due to this you get a low interest rate and have to pay a penalty. To get rid of this problem, State Bank of India (SBI) has brought a special FD scheme.

New Delhi. In all types of Savings Schemes, Fixed Deposits are the most preferred investment option of the people. People of all ages like this method of saving. The biggest reason for this is that it is safer and less risky than other schemes. One can also invest in it for short to long term. However, the biggest problem with FD is that if money is needed, it has to be broken, even if the need is a small amount of money. Due to this you get a low interest rate and have to pay a penalty. To get rid of this problem, State Bank of India (SBI) has brought a special FD scheme.

Know what is multi option deposit scheme

In SBI Multi Option Deposit Scheme MODS, you can withdraw as much money as you need without breaking FD.

These facilities are like

SBI MODS scheme term deposits, but it is linked to the savings or current account of the account holder. The advantage of this is that you can withdraw money from it anytime if needed. It has the facility of premature withdrawal. However TDS is applied on this. If the depositor wants to withdraw money from the linked account and does not have that much money in his account, then he can withdraw money from the MODS as well. Money can be withdrawn in 1000 rupees or its multiples.




Know what is special in the scheme

SBI multi option deposit scheme has to deposit at least 10,000 rupees. After this, you can deposit more rupees in multiples of 1000 rupees in it. There is no maximum limit for depositing money in it.

SBI MOD scheme can be withdrawn through ATM also. After withdrawing money from the MOD, the fixed interest on FD will continue to be earned on the amount of money left.

MODS gets the same amount of interest as SBI’s other FDs.

On this scheme, facility of taking loan and nominee is available. It can be transferred from one branch of SBI to another branch.

Minimum monthly average balance in Linked Savings account is compulsory for the custemer who holds MOD. It has to keep a minimum balance of 3000 rupees. When the balance is reduced, the MODS is broken and credited to the account.

Individual, joint, minor, firm, company, local body can invest in this scheme.

Like SBI FD, here too, interest will be available at the rate of 2.9% to 5.9%. These rates are effective from 8 January 2021.

On FD up to 5 lakhs, if you withdraw money before time, then penalty of 0.50% will be levied. This penalty will be 1% on FDs between 5 lakh and 1 crore. There is no interest on deposits less than 7 days.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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