SBI Multi Option Deposit (MOD) Calculator
Calculate exact interest gains from SBI’s auto-sweep facility. Compare idle savings account returns (2.70%) with quarterly compounded MOD fixed deposit rates (up to 7.00%–7.50%) while preserving 100% daily liquidity through LIFO reverse sweeps.
SBI Multi Option Deposit (Auto-Sweep) Calculator
Simulate auto-sweep returns, liquidity threshold, LIFO reverse sweep, and extra interest earned over standard savings.
Funds maintained across your SBI Savings Plus account.
SBI requires keeping a minimum retained balance (standard ₹35,000) for daily liquidity. Only funds exceeding this threshold by at least ₹10,000 are auto-swept into MOD deposits.
Fund Allocation Breakdown
Term Deposit Units
1 Year Payout
Section 80TTA allows deduction up to ₹10,000 exclusively on savings bank interest. Term deposit (MOD) interest is taxed at your income tax slab rate. TDS under Section 194A applies at 10% if annual MOD interest exceeds ₹40,000.
SBI Savings Plus divides your account balance into two distinct interest-generating pools to optimize yield without locking your day-to-day liquidity:
The initial ₹35,000 (or chosen threshold) remains liquid in your standard savings account, continuing to earn the base savings interest rate of 2.70% p.a.
Surplus funds beyond the threshold (minimum ₹10,000) are automatically converted into term deposit units of ₹1,000 each, earning fixed deposit interest rates (up to 7.00%–7.50% p.a.).
Term deposit interest compounds every quarter according to RBI guidelines:Maturity = Principal × (1 + Rate / 400)4 × Years
If an ATM withdrawal, UPI transfer, or cheque payment exceeds your liquid savings balance, SBI automatically breaks the exact required number of ₹1,000 units starting from your most recently created deposit (LIFO). All remaining unbroken units continue compounding at the full term deposit rate.
Suppose an account holder maintains an average balance of ₹2,50,000 in an SBI Savings Plus account with the standard ₹35,000 threshold limit and chooses a 1-year MOD tenure (6.80% p.a.).
| Component | Regular Savings (No Sweep) | With SBI MOD Auto-Sweep | Advantage / Difference |
|---|---|---|---|
| Liquid Savings Balance | ₹2,50,000 (earning 2.70%) | ₹35,000 (earning 2.70%) | Threshold protected |
| Swept into Term Deposit | ₹0 (Zero) | ₹2,15,000 (215 units) | Earns 6.80% quarterly |
| Savings Account Interest | ₹6,750 | ₹945 | Calculated on ₹35,000 |
| MOD Term Deposit Interest | ₹0 | ₹14,997 | Compounded 4 times |
| Total 1-Year Returns | ₹6,750 | ₹15,942 | +₹9,192 (+136.2%) |
*The account holder earns an extra ₹9,192 without locking up funds, as any amount needed above ₹35,000 is automatically reverse-swept instantly on demand.
| Total Account Balance | Retained in SB (₹35k) | Swept to MOD | Normal SB Return (2.70%) | With Auto-Sweep MOD | Net Extra Wealth Gained |
|---|---|---|---|---|---|
| ₹50,000 | ₹35,000 | ₹15,000 | ₹1,350 | ₹1,991 | +₹641 (+47.5%) |
| ₹1,00,000 | ₹35,000 | ₹65,000 | ₹2,700 | ₹5,479 | +₹2,779 (+102.9%) |
| ₹2,50,000 | ₹35,000 | ₹2,15,000 | ₹6,750 | ₹15,942 | +₹9,192 (+136.2%) |
| ₹5,00,000 | ₹35,000 | ₹4,65,000 | ₹13,500 | ₹33,380 | +₹19,880 (+147.3%) |
| ₹10,00,000 | ₹35,000 | ₹9,65,000 | ₹27,000 | ₹68,256 | +₹41,256 (+152.8%) |
| ₹25,00,000 | ₹35,000 | ₹24,65,000 | ₹67,500 | ₹1,72,884 | +₹1,05,384 (+156.1%) |
Common Questions & Answers (English & हिंदी)
Clear answers to common questions in your preferred language.
Related Banking, Fixed Income & Tax Optimization Tools
Calculate monthly guaranteed annuity payouts from a lump sum deposit with reducing principal schedules.
Calculate official State Bank of India draft commission across all 4 slabs, 18% GST, and cancellation fees.
Compare Section 115BAC slabs with Section 80TTA/80TTB interest deductions to minimize income tax.
What is the SBI Multi Option Deposit Scheme (MODS) and how does Auto-Sweep work?
The SBI Multi Option Deposit Scheme (MODS) is a specialized Term Deposit linked to an SBI Savings Bank or Current Account (under the SBI Savings Plus Account). When the balance in your savings account exceeds a predetermined threshold (standard ₹35,000), surplus funds in multiples of ₹1,000 (minimum transfer ₹10,000) are automatically swept into term deposits earning fixed deposit interest rates (up to 7.00% p.a. for general depositors and 7.50% for senior citizens) instead of the standard 2.70% savings rate.
What is the minimum threshold balance required for Auto-Sweep in SBI?
In the standard SBI Savings Plus Account, the default minimum retained threshold limit is ₹35,000. Surplus funds beyond this threshold must be at least ₹10,000 to trigger an auto-sweep. For example, if your end-of-day balance is ₹55,000, ₹20,000 is auto-swept into an MOD deposit, while ₹35,000 remains liquid in your savings account.
What is Reverse Sweep and how does the LIFO rule work?
When you withdraw money via ATM, cheque, UPI, or net banking and your savings account balance is insufficient, SBI automatically initiates a "Reverse Sweep". The bank breaks MOD units in multiples of ₹1,000 and transfers them back into your savings account. By default, SBI uses the LIFO (Last-In, First-Out) rule—the newest deposit is broken first, ensuring your older deposits remain undisturbed and continue compounding at maximum contracted interest rates.
Is there any penalty for breaking MOD units during a Reverse Sweep?
No penalty applies to the unbroken MOD units; they continue to earn the original contracted fixed deposit interest rate. For the broken unit of ₹1,000 (or multiples thereof), interest is paid for the exact duration the funds remained in the deposit at the rate applicable for that specific period minus statutory premature penalty (typically 0.50% if deposit is ≤ ₹5 Lakh). If broken within 7 days of creation, no interest is paid on that specific unit.
How is interest on SBI MOD taxed under Indian Income Tax laws?
Interest earned on the liquid savings portion qualifies for deduction up to ₹10,000 under Section 80TTA for non-seniors. However, interest earned from the swept MOD (term deposit) portion is treated as deposit interest and taxed at your applicable income tax slab rate. TDS under Section 194A is deducted at 10% if total bank interest across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens under Section 80TTB).