diff --git a/backend/benefit/terms/admin.py b/backend/benefit/terms/admin.py
index 0d45d97867..f8c0ae46ba 100644
--- a/backend/benefit/terms/admin.py
+++ b/backend/benefit/terms/admin.py
@@ -29,7 +29,7 @@ class TermsAdmin(admin.ModelAdmin):
     list_display = ("id", "terms_type", "effective_from")
 
     class Media:
-        css = {"all": ("css/markdownx.css",)}
+        css = {"all": ("css/markdown.css",)}
 
 
 class ApprovedApplicantConsentInline(admin.ModelAdmin):
diff --git a/backend/benefit/terms/models.py b/backend/benefit/terms/models.py
index 639be277d4..2f457409bb 100644
--- a/backend/benefit/terms/models.py
+++ b/backend/benefit/terms/models.py
@@ -35,9 +35,15 @@ class Terms(UUIDModel, TimeStampedModel):
         default=TermsType.APPLICANT_TERMS,
     )
 
-    terms_md_fi = models.TextField(verbose_name=_("Finnish terms (md)"), blank=True)
-    terms_md_en = models.TextField(verbose_name=_("English terms (md)"), blank=True)
-    terms_md_sv = models.TextField(verbose_name=_("Swedish terms (md)"), blank=True)
+    terms_md_fi = models.TextField(
+        verbose_name=_("Finnish terms (md)"), blank=True, default=""
+    )
+    terms_md_en = models.TextField(
+        verbose_name=_("English terms (md)"), blank=True, default=""
+    )
+    terms_md_sv = models.TextField(
+        verbose_name=_("Swedish terms (md)"), blank=True, default=""
+    )
 
     """
     If effective_from is set to null, that means the terms are not to be displayed to the applicant.
diff --git a/backend/benefit/terms/static/css/markdownx.css b/backend/benefit/terms/static/css/markdown.css
similarity index 94%
rename from backend/benefit/terms/static/css/markdownx.css
rename to backend/benefit/terms/static/css/markdown.css
index 7165fb72ac..fb339475cf 100644
--- a/backend/benefit/terms/static/css/markdownx.css
+++ b/backend/benefit/terms/static/css/markdown.css
@@ -39,3 +39,7 @@
     list-style: disc;
     font-size: 1em;
 }
+
+label[for*="id_terms_md_"] {
+    float: none;
+}
diff --git a/backend/benefit/terms/tests/factories.py b/backend/benefit/terms/tests/factories.py
index cf8efbf94e..c08ad2659d 100644
--- a/backend/benefit/terms/tests/factories.py
+++ b/backend/benefit/terms/tests/factories.py
@@ -24,11 +24,20 @@ class Meta:
         model = ApplicantConsent
 
 
+markdown_content = """# Heading 1
+
+Lorem ipsum dolor sit amet"""
+
+
 class TermsFactory(factory.django.DjangoModelFactory):
     terms_pdf_fi = "terms_fi.pdf"
     terms_pdf_en = "terms_en.pdf"
     terms_pdf_sv = "terms_sv.pdf"
 
+    terms_md_fi = markdown_content
+    terms_md_en = markdown_content
+    terms_md_sv = markdown_content
+
     applicant_consent_1 = factory.RelatedFactory(
         ApplicantConsentFactory,
         factory_related_name="terms",
diff --git a/backend/benefit/terms/tests/test_terms_of_service_api.py b/backend/benefit/terms/tests/test_terms_of_service_api.py
index 683f68c2b0..477710e543 100644
--- a/backend/benefit/terms/tests/test_terms_of_service_api.py
+++ b/backend/benefit/terms/tests/test_terms_of_service_api.py
@@ -18,7 +18,7 @@ def get_current_user_url():
     return "/v1/users/me/"
 
 
-def test_terms_of_service_in_effect(
+def test_terms_of_service_in_effect_pdf(
     api_client, mock_get_organisation_roles_and_create_company
 ):
     """
@@ -60,6 +60,58 @@ def test_terms_of_service_in_effect(
     assert response.status_code == 200
 
 
+def test_terms_of_service_in_effect_md(
+    api_client, mock_get_organisation_roles_and_create_company
+):
+    """
+    Test that the API returns the correct Terms and ApplicantConsents in the terms_of_service_in_effect field.
+    """
+    current_terms = TermsFactory(
+        effective_from=date.today(), terms_type=TermsType.TERMS_OF_SERVICE
+    )
+
+    markdown_content = """# Heading 1
+
+Lorem ipsum dolor sit amet"""
+
+    # Create some extra terms that should not be returned
+    # ... old terms
+    TermsFactory(
+        effective_from=date.today() - timedelta(days=1),
+        terms_type=TermsType.TERMS_OF_SERVICE,
+    )
+    # ... future terms
+    TermsFactory(
+        effective_from=date.today() + timedelta(days=1),
+        terms_type=TermsType.TERMS_OF_SERVICE,
+    )
+    # ... wrong type of terms
+    TermsFactory(effective_from=date.today(), terms_type=TermsType.APPLICANT_TERMS)
+    response = api_client.get(get_current_user_url())
+
+    assert (
+        get_company_from_request(response.wsgi_request)
+        == mock_get_organisation_roles_and_create_company
+    )
+    assert response.data["terms_of_service_in_effect"]["id"] == str(current_terms.pk)
+    assert (
+        response.data["terms_of_service_in_effect"]["terms_md_fi"] == markdown_content
+    )
+    assert (
+        response.data["terms_of_service_in_effect"]["terms_md_en"] == markdown_content
+    )
+    assert (
+        response.data["terms_of_service_in_effect"]["terms_md_sv"] == markdown_content
+    )
+
+    assert {
+        obj["id"]
+        for obj in response.data["terms_of_service_in_effect"]["applicant_consents"]
+    } == {str(obj.pk) for obj in current_terms.applicant_consents.all()}
+
+    assert response.status_code == 200
+
+
 @pytest.mark.parametrize("previously_approved", [False, True])
 def test_approve_terms_success(
     api_client,