SBI Multi Option Deposit Scheme
|SBI Multi Option Deposit Scheme|
|Minimum Deposit Amount||Rs. 10,000|
|Tenure||1 year to 5 years|
|Interest Rate||5.30% to 5.40%|
SBI Multi Option Deposit Scheme is a term deposit scheme linked to the traditional savings account of the customer. The scheme allows you to liquidate the full investment anytime within the tenure of the deposit. The scheme also allows you to liquidate the investment partially in multiples of 1000 and the balance amount under SBI Multi Option Deposit Scheme shall continue to fetch the interest as per agreed terms.
For example, if you are having a deposit of Rs. 1.00 lakh for 3 years and after a month of deposit you are in urgent need of Rs. 50 thousand, then you can go to the bank and get Rs. 50 thousand liquidated from this SBI Fixed Deposit (FD) of Rs. 1.00 lakh in your name. The rest of the amount shall continue to be under the same scheme as agreed initially.
You can open an account under SBI Multi Option Fixed Deposit Scheme either online through net banking or offline by visiting the nearest branch.
Features of SBI Multi Option Deposit Scheme
- It is a term deposit/ special term deposit account with a minimum tenure of 1 year and a maximum of 5 years.
- The minimum amount required to open a fixed deposit under SBI Multi Option Deposit Scheme is Rs. 10 thousand and thereafter in multiples of 1 thousand. The bank has fixed no upper limit for the amount of deposit.
- ROI applicable under this scheme is at par with other fixed deposit schemes.
- The facility of nomination is available. TDS is applicable as per existing guidelines.
- In the case of an auto-sweep account, the nomination of a fixed deposit account is the same as the account from where the fund is being transferred. If the customer wants to change the nomination, he/ she may do the same by filling the DA-I form in the home branch.
- In case of partial withdrawal, the amount withdrawn attracts a penalty. However, the amount continued to be kept in the SBI Multi Option Deposit Scheme shall keep fetching an interest rate as agreed while opening the account.
- A loan facility is available in this scheme.
- The account can be transferred from one branch to another throughout India.
- The option of partial withdrawal is not allowed when the account under consideration is marked with a lien (due to any reason) unless the lien marked is deleted.
- Advice is issued to the customer under SBI Multi Option Deposit Scheme but in the case of the auto sweep, no advice is issued.
Eligibility Criteria for SBI Multi Option Deposit Scheme
Following constitutions are eligible to open an account under SBI Multi Option Deposit Scheme:
- Individuals (either singly or jointly)
- Karta of HUF
- Local bodies
- State as well as central government departments
- Minor (through self or guardian)
SBI Multi Option Deposit Scheme Interest Rate
SBI Multi Option Deposit Scheme Interest Rate is as follows:
- The bank offers an interest rate of 5.30% for deposits under the SBI Multi Option Deposit Scheme having tenure between 3 years to 5 years.
- An interest rate of 5.40% is offered by the bank for the tenure of more than 5 years under the SBI Multi Option Deposit Scheme.
SBI Multi Option Deposit Scheme Premature Closure
Here are details of preclosure of SBI Fixed Deposit:
- The option of premature closure is available in the scheme. This option is available but attracts a penalty associated with the withdrawal amount. The customer needs to sacrifice the interest and also a penalty is charged by the bank. The penalty associated with it can be as much as a 1% cut in interest rate to be offered for the withdrawn amount. However, the amount not withdrawn by the customer shall remain in the same scheme and shall fetch interest as per the agreement.
- NIL interest is paid for deposits having tenure of less than 7 days.
- The penalty on premature withdrawal of fixed deposit is 0.5% for deposits up to a limit of Rs. 5 lakhs (irrespective of tenure)
- The bank charges a penalty of 1% for premature closure of fixed deposits with a limit of more than Rs. 5 lakhs for all tenures.
Frequently Asked Questions about SBI Multi Option Deposit Scheme
Here are the FAQs:
1. How to Create a State Bank of India Multi Option Deposit?
You can apply for a MODS account by visiting the nearest branch or OnlineSBI platform.
2. How Much Can You Invest?
You have to deposit at least Rs. 10,000 in the account. But there is no maximum limit for the amount you put in this fixed deposit.
3. How Long Can You Keep the FD?
The maximum tenure is 5 years. And the minimum tenure is 1 year.
4. Do You Get a Receipt for this Fixed Deposit?
Yes, you will receive advice for the term deposit. But if you opt for auto-sweep, then you will not get the advice.
5. Can You Take a Loan against the FD?
Yes, a loan facility is available on this SBI Fixed Deposit.