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The country’s largest public sector bank, State Bank of India (SBI) has increased the minimum limit of its multi -option deposit (MOD) scheme from Rs 35,000 to Rs 50,000 under Auto Sweep Facility. This change, which will be effective immediately, allows the additional amount of more than Rs 50,000 to the savings bank account to automatically transfer to the fixed deposit, which will help customers to get high interest rates.

SBI MOD scheme, which is a type of fixed deposit, can be opened through a savings bank account with auto sweep facility or on a single basis. When the savings account balance is reduced to the debit mandate, the reverse sweep transferred the amount from the MOD to meet that deficiency. The scheme is available for individuals (alone or jointly) and minors (through parents), in which the minimum deposits are one year and maximum five years.

Interest on MOD is compounded and trimester is paid by default. In the event of premature withdrawal, a fine is imposed on the basis of the interest rate applied for the deposit period, while the basic rate is applied to the remaining amount. Tax deduction (TDS) applies at the source as per the rules. Senior citizens get additional interest rate, but very senior citizens are not eligible for this benefit. Enrollment details from the linked savings bank account are automatically applied to MOD accounts, although customers can modify them as required.

This update increases flexibility for SBI customers who seek more returns on extra savings. For detailed terms and conditions, see the official website of SBI or contact your nearest branch.