India’s largest public sector lender State Bank of India (SBI) has increased the minimum threshold limit for Multi Option Deposit of Savings Bank Account under Auto Sweep facility from Rs 35,000 to Rs 50,000.

This means, that the Minimum threshold limit beyond which MODS will execute under Auto Sweep is now Rs 50,000.

What Is SBI Multi Option Deposit Scheme?

SBI MOD is one of the variants of Term Deposits. MODS can be opened through Savings Bank Account under Auto Sweep facility or Stand-Alone basis.

SBI mentions in its website, the basic feature of this scheme is to facilitate customer to gain higher interest rate, out of the surplus funds above a threshold limit from the Savings Bank Account is transferred automatically to Term Deposits (MODS). 

In case the amount falls short in Savings Bank Account for honouring debit mandate, partial/ full withdrawal (reverse sweep) from term deposits will be executed and credited back into Savings Bank Account.

Multi Option Deposit: Who Can Open The A/C

Any Individual Singly Or jointly, Minor (himself/herself or through his/her guardian) can open the account.

Multi Option Deposit: Period of Deposit

Minimum tenor is 1 year, and maximum is 5 years.

Multi Option Deposit: Interest application and premature payment

SBI mentions, Interest is paid quarterly and is compounded and it is a default setup. But when there is a break of MOD, the amount is paid with penalty at the applicable interest rate for the period the broken amount has run, and the remaining amount continue to earn original rate of interest. TDS is deducted as applicable. Senior Citizens are eligible for additional interest rate as applicable while Super Senior Citizens are Not eligible for additional interest rate as applicable.

Multi Option Deposit: Nomination facility

The Nomination details available in primary /linked Savings Bank Account will automatically stamp in MOD accounts. However, if a customer wants to change Nomination in any of the accounts, he or she may do.