Earn Highest Interest on your Saving account through SBI MOD Account

Last Updated on July 30, 2023 by Brajesh

Below article will help you to Earn Highest Interest on your Saving account through SBI MOD Account

Saving Account & Loss of keeping money in saving account

Everyone have at least one saving account either with Public Sector Bank or with Private Sector Bank. Even though we know keeping money in saving account does not generate any income then also people keep some some portion of their deposit in saving account to meet any emergency requirement.

Apart from this there are some saving account where you are required to keep minimum balance to avoid any extra charges (apart from zero balance account). But the most important thing here is the money we kept in savings account earns merely 2.75-3% interest a year, which is much below the inflation rate. So, we end up losing money can be viewed as opportunity cost for any depositors. Hence, It is clear that if you keep money in saving account it will deplete due to the pressure of Inflation.

What is the alternative ?

As we know we cannot keep entire amount in fixed deposit in seacr of Interest , hence keeping money in saving bank account has no alternative, apart from One which is SBI Multi Option Deposit Scheme (MODS)

What is SBI Multi Option Deposit Scheme (MODS) ?

SBI Multi Option Deposit Scheme (MODS) are Term Deposits linked to the Savings or Current Account (individual). Unlike normal Term Deposits which are fully liquidated anytime you need funds; you can withdraw from a MODS account in multiples of 1000 as per your fund need. The balance amount in your MODS account will continue to earn the Term Deposit rates applicable at time of initial deposit. Hence the surplus fund above a certain threshold limit from the savings account will be automatically sent to Term Deposit accounts. This scheme will promote greater savings and also offer a range of benefits to the customers.

Features of SBI Multi Option Deposit Scheme (MODS) ? 

  • These are combination of Term Deposits/Special Term Deposits with linked Savings Bank/ Current Accounts.
  • Deposits are completely liquid and can be withdrawn in multiples of Rs. 1000, any number of times through cheque/ATMs/INB.
  • Tenor of deposits for 1 to 5 years.
  • TDS is applicable at prevalent rate.
  • Nomination facility is available.
  • Provision of MODs are also available through auto sweep facility in Savings Plus accounts.
  • For ‘auto sweep’ facility, the Minimum Threshold Balance & Minimum Resultant Balance should be Rs 35,000/-and Rs. 25,000/- respectively. inimum Sweep amount of Rs. 10,000/- in multiples of Rs.1000/-.
  • It is to be noted that the above restriction on Threshold Limit will apply only for availing auto sweep facility and the individual Stand – Alone MOD an continue to be opened by the customers including e-MOD with a minimum of Rs.10,000/- irrespective of the Threshold Level. Additional Rate of interest applicable to Senior Citizens is payable.
  • Maintaining AMB (Average Monthly Balance) is applicable on linked Savings Bank/Current Account.

Complete details is available on official website  SBI MOD

What is the benefit of MOD in SBI ?

Withdraw from a MODS account in multiples of 1000 as per your fund need is allowed unlike other Term deposit or Fixed Deposit account

Drawbacks of SBI MOD ?


What is the interest rate of SBI savings Plus mod?

Interest rate on SBI MOD Plus is bifurcated into 2 parts :-

  • Interest Rate – SBI MOD Term Deposits :  SBI MOD Balance Interest rate meaning the interest paid for term deposits through MOD will be as per the prescribed interest rates for STDR and TDR for various terms.
  • Interest Rate – SBI Savings Plus Account:- 4% per annum as on date



SBI MOD plus help you to have the facility of Saving account with the potential of earning Interest on idel fund at interest rate of Term Deposit. Fund is always available for withdrawal in case of requirement. There is no penalty on this account for any withdrawal.

SBI MOD plus is always a better option then Saving Bank account




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