SBI Raises Multi Option Deposit (MOD) Threshold To ?50,000 Under Auto Sweep Facility

Synopsis: The State Bank of India (SBI) has revised the minimum threshold for its Multi Option Deposit (MOD) under the Auto Sweep facility, increasing it from ?35,000 to ?50,000. This move will help customers earn higher interest on surplus savings while maintaining liquidity.

India’s largest public sector lender, State Bank of India (SBI), has announced an upward revision in the minimum threshold limit for Multi Option Deposit (MOD) linked to Savings Bank Accounts under the Auto Sweep facility.

The revised threshold, effective immediately, has been increased from ?35,000 to ?50,000, meaning that any balance above ?50,000 in a customer’s savings account will automatically be transferred into a term deposit (MOD).

What Is Multi Option Deposit (MOD)?

SBI’s MOD is a variant of term deposits designed to maximize earnings on surplus funds while ensuring liquidity.

• Auto Sweep Facility: Surplus funds above ?50,000 in the savings account are automatically swept into a term deposit.
• Reverse Sweep: If the savings account balance falls short for any debit transaction, funds are automatically transferred back from the MOD.
• Tenor: Minimum deposit period is 1 year, while the maximum is 5 years.
• Eligibility: Individuals (single/joint), minors (self/guardian) can open MOD accounts.
• Interest: Paid quarterly, compounded quarterly by default. Premature withdrawals attract a penalty, while the remaining balance continues to earn original interest.
• Nomination: Details from the primary savings account are carried forward to MODs automatically.

Senior Citizens are eligible for additional interest benefits; however, Super Senior Citizens do not receive extra rates under this scheme.

Impact For Customers

• Customers with higher balances in savings accounts will now require a ?50,000 balance before Auto Sweep activates.
• MOD ensures idle money doesn’t remain in a low-interest savings account but is instead converted into a higher-interest term deposit.
• Liquidity remains intact, as MOD allows partial withdrawal whenever funds are required.

Disclaimer: This article is for informational purposes only and is based on the latest SBI updates. Customers are advised to visit the official SBI website or contact their nearest branch for specific terms, conditions, and applicable interest rates.