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The State Bank of India has increased the minimum threshold limit for the auto sweep facility availed by its savings bank account holders.
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In an influential development for the savings bank account holders of the State Bank of India (SBI), the popular Indian bank has raised the minimum threshold limit for the auto sweep facility from Rs 35,000 to Rs 50,000. “We inform that the minimum threshold limit for the auto sweep facility in Savings Bank accounts has been increased from Rs 35,000/- to Rs 50,000/-. Hence, the next MOD (Multi Option Deposit) shall be triggered at Rs 50,000/-,” wrote SBI in emails sent to its customers.
What Is The Multi-Option Deposit?
With SBI’s Multi Option Deposit Scheme (MODS), bank customers can expect to earn a higher interest on maintaining a savings bank account as opposed to the nominal returns traditionally offered on the same. The scheme works on an interesting method, wherein the extra sum in a customer’s savings account above the limit set by SBI is transferred automatically into a fixed deposit.
If the balance in a customer’s savings account is not sufficient to honour the debit mandate, SBI will then partially or fully transfer the money back from the MOD scheme into their account. “The basic feature of the SBI MOD scheme is to facilitate customers to gain a higher interest rate, out of the surplus funds above a threshold limit from the Savings Bank Account is transferred automatically to Term Deposits (MODS),” read a statement on SBI’s official website.
“In case the amount falls short in the Savings Bank Account for honouring the debit mandate, partial/ full withdrawal (reverse sweep) from term deposits will be executed and credited back into the Savings Bank Account.”
The interest on MOD is paid quarterly or on a compounded basis. Upon premature withdrawal of the MOD, the bank pays the customer the concerned broken amount with a penalty at the applicable interest rate for the period the broken amount was held. During this period, the rest of the deposit continues to fetch interest to the customer at the original rate, while the applicable TDS is also deducted.
Minimum SBI MOD Withdrawal
According to the SBI, “In units of Rs 5,000/- and in multiples thereof. When the outstanding balance in TDR reaches Rs 15,000/-, the full amount is reversed to SB, irrespective of the requirement. The withdrawal of the unit will take place for the latest MOD made (LIFO). (Option is available for customers to choose FIFO or LIFO).”
Upon maturity of the MOD deposit, the State Bank of India automatically transfers the remaining maturity amount to the account holder’s registered savings account. In such cases, the full balance, which is the principal sum plus the interest excluding the withdrawals, is credited directly.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Delhi, India, India
September 11, 2025, 16:12 IST
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