SBI Multi-Option Deposit Scheme

SBI’s multi-option deposit scheme (MODS), a type of fixed deposit (FD) or term deposit scheme, is linked to the savings or current account of an individual. Unlike normal fixed deposits which are fully liquidated anytime you need funds; you can withdraw in multiples of Rs. 1,000 from MODS account, according to your need, as described by State Bank of India (SBI) on its corporate website-

Here are key things to know about SBI’s multi-option deposit scheme (MODS):

Minimum/maximum investment

The minimum fixed deposit amount needed for MOD creation is Rs. 10,000. Any deposits above this amount are required to be in multiples of Rs. 1,000. However, there is no limit for a maximum term deposit amount for MOD creation.


For SBI’s multi option deposit scheme, the minimum tenure is one year and the maximum tenure is five years.

Interest rates

It offers the same interest on a multi option fixed deposit account as on a fixed deposit account. The following FD interest rates are for deposits below Rs. 1 crore:

Tenors Revised For Public w.e.f. 28.11.2018 Revised for Senior Citizens w.e.f. 28.11.2018
1 year to less than 2 year 6.8 7.3
2 years to less than 3 years 6.8 7.3
3 years to less than 5 years 6.8 7.3

(As mentioned on SBI’s website)

Tax Deducted At Source (TDS)

Tax deducted at source (TDS) is applicable on SBI’s multi option deposit scheme. The government has in Interim Budget 2019-20 proposed to increase the limit for tax deduction at source (TDS) on interest income earned on bank deposits from Rs. 10,000 to Rs. 40,000 per annum. The proposed change in TDS rules will come into effect from April 1, 2019.

Premature withdrawal

Premature withdrawal is allowed in SBI’s multi option deposit account. Rules of premature withdrawal of a fixed deposit (FD) account are applicable on the multi option deposit account, mentioned SBI.


Source: NDTV Profit,

Author: Arindam Saha

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