SBI MODS is a term deposit scheme which is linked to the savings or current account of the customer. Unlike normal term deposits, the customer does not have to pay any penalty for premature withdrawal from SBI Modes account.
New Delhi. Premature Withdrawal allows investors to withdraw money from Fixed Deposit (FD) before maturity, if needed. If customers break their FD prematurely for need of money in emergency, then they have to pay a fixed amount to the bank as a penalty. In traditional FDs, a penalty of 1 per cent is usually applicable on the interest amount on premature withdrawal. However, State Bank of India (SBI) runs such an FD scheme from which money can be withdrawn at any time and you will not have to pay any penalty.
No penalty for premature withdrawal in SBI MODS
The name of this FD account of SBI is Multi Option Deposit Scheme or SBI MODS. It is a term deposit scheme which is linked to the savings or current account of the customer. Unlike normal term deposits, the customer does not have to pay any penalty for premature withdrawal from SBI Modes account.
Eligibility for SBI Modes Account
Single or joint, parents in the name of minor, Karta of joint Hindu family, firm, company, local body and any government department can open SBI Modes account in their own name.
SBI Modes Account Interest Rates
In SBI Modes scheme, the customer gets the same interest as the interest paid on regular fixed deposits. For example, if 5.5 percent is available on SBI’s regular FD, then only 5.5 percent interest will be available in SBI Modes. Senior citizens will get an additional 0.50 percent interest.
SBI Modes Scheme Tenure
The tenure of SBI Modes scheme is 1 to 5 years. According to SBI, money can be withdrawn from the Modes account in multiples of Rs 1000. There is no restriction on the withdrawal limit. Customers can withdraw money from this account by visiting an ATM, check or bank branch.
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