TDS is also applicable on State Bank of India's (SBI) multi option deposit scheme.State Bank of India on Wednesday said that the SBI app is now updated with new feature of opening an MOD (Multi Option Deposit) account.
The country's largest lender informed about the development on Twitter.
According to sbi.co.in, multi option deposit scheme (MODS) are term or fixed deposits linked to the savings or current account of an individual.
Unlike normal term deposits which are fully liquidated anytime you need funds, you can withdraw from an MODS account in multiples of 1,000 according to your need of funds.
The balance amount in your MODS account will continue to earn the term or fixed deposit interest rates applicable at the time of initial deposit.Here's all you need to know to open a SBI multi option deposit scheme:Amount: The minimum term or fixed deposit amount needed for MOD creation is Rs 10,000 and in multiple of Rs 1,000 eachthereafter.
However, there is no limit for a maximum term deposit amount for MOD creation.Tenure: The minimum tenor is 1 year and maximum is 5 years.Withdrawal: Premature withdrawal is allowed under MODS and for this, rules for TDR/STDR (term deposit/special term deposit) is applicable.Therate of intereston MOD is same as thoseapplicable onterm deposits.Interest rates on MODS(All figures in % per annum)TenorsExisting for Public w.e.f.
28.02.2018Revised For Public w.e.f.
28.03.2018Existing for Senior Citizens w.e.f.
28.02.2018Revised for Senior Citizens w.e.f.
28.03.20187 days to 45 days5.755.756.256.2546 days to 179 days6.256.256.756.75180 days to 210 days6.356.356.856.85211 days to less than 1 year6.46.46.96.91 year to less than 2 year6.46.46.96.92 years to less than 3 years6.56.677.13 years to less than 5 years6.56.777.25 years and up to 10 years6.56.7577.25Tax deducted at source (TDS) is applicable on SBI's multi option deposit scheme.Loan facility is also available under MODS.
Further breaking of units when lien is marked on a particular account is not allowed.
One can also nominate a nominee.However, the customer has to maintain MAB (monthly average balance) in linked savings bank account.
The system does not break MOD to do so.