SBI Multi Option Deposit Scheme: Flexible FD That Lets You Withdraw Anytime Without Penalty

Many people hesitate to invest in Fixed Deposits (FDs) because of one common concern — the fear of their money getting locked in for a long period. Breaking an FD before maturity usually comes with heavy penalties and loss of interest, which discourages many small and medium investors.

However, the State Bank of India (SBI) has introduced an innovative solution to this problem with its Multi Option Deposit (MOD) Scheme. Unlike traditional FDs, this deposit plan allows investors to withdraw their money anytime without facing a penalty, offering a perfect balance between security, flexibility, and returns.

What Is SBI Multi Option Deposit (MOD) Scheme?

The MOD scheme is a special type of term deposit that is linked to a customer’s Savings or Current Account. Under this scheme:

• Investors can deposit both small and large amounts as per their financial capacity.

• The deposited amount is converted into a fixed deposit, earning attractive interest rates similar to regular FDs.

• In case of an urgent need for funds, customers can withdraw any required amount directly from their linked account. The money is automatically swept back from the MOD deposit in multiples of ₹1,000, without incurring any penalty.

This means you don’t have to break your entire FD for small withdrawals — making it a smart and liquid investment option.

Key Features of SBI MOD Scheme

1. Flexibility in Deposits – Investors can start with a small amount and increase their deposits over time.

2. Partial Withdrawals Allowed – Customers can withdraw in multiples of ₹1,000 without closing the full deposit.

3. No Penalty Charges – Unlike traditional FDs, there are no premature withdrawal penalties.

4. Attractive Interest Rates – The scheme offers interest rates similar to SBI’s standard FD rates.

5. Liquidity + Security – Investors enjoy the safety of an FD along with the liquidity of a savings account.

Why Choose MOD Over Traditional FDs?

Traditional FDs often lock your funds until maturity, and withdrawing early reduces your earnings. The MOD scheme solves this problem by combining the high returns of FDs with the flexibility of savings accounts.

This makes it especially useful for:

• Salaried employees, who may need access to emergency funds.

• Small business owners, who require liquidity to manage cash flow.

• Senior citizens, who want regular access to money without losing interest benefits.

How to Apply for SBI MOD Scheme

Opening an MOD account with SBI is simple and can be done through:

• Online Banking (YONO SBI or Net Banking) – Customers can log in and activate the MOD facility directly.

• Branch Visit – Investors can visit their nearest SBI branch and request for MOD activation linked to their account.

Once activated, any surplus balance above a chosen limit in your savings account automatically gets transferred to the MOD account and starts earning FD-like interest.

Final Takeaway

The SBI Multi Option Deposit Scheme is a customer-friendly alternative to traditional FDs, offering flexibility, liquidity, and attractive returns. It eliminates the fear of funds being locked in and ensures that your money remains accessible whenever required.

For investors who want both security and convenience, this scheme is an ideal option. Whether you have short-term savings or want to park large funds safely, the SBI MOD scheme ensures that your money works for you without restricting access.