The State Bank of India (SBI) has once again disappointed its customers by reducing the interest rates on Fixed Deposits (FD). The revised interest rates for both regular citizens and senior citizens came into effect on May 16, 2025. According to SBI’s official website, the bank has cut FD interest rates by 20 basis points (bps) across all tenures. This marks the second reduction in just one month, following a similar cut on April 15, 2025.
New FD Interest Rates Post-Cut
After the 20 bps reduction, SBI’s FD rates for amounts under ₹3 crore now range from 3.30% to 6.70% annually (excluding special FD schemes). Previously, SBI was offering interest rates ranging from 3.50% to 6.90% per annum for FDs with tenures ranging from 7 days to 10 years.
Comparison of FD Interest Rates:
| Tenure | Interest Rate till 15th April 2025 | Interest Rate from 16th April 2025 |
|---|---|---|
| 7 to 45 days | 3.50% | 3.30% |
| 46 to 179 days | 5.50% | 5.30% |
| 180 to 210 days | 6.25% | 6.05% |
| 211 days to < 1 year | 6.50% | 6.30% |
| 1 year to < 2 years | 6.70% | 6.50% |
| 2 years to < 3 years | 6.90% | 6.70% |
| 3 years to < 5 years | 6.75% | 6.55% |
| 5 to 10 years | 6.50% | 6.30% |
Reduction in Special FD Rates
SBI has also slashed interest rates on its special FD scheme, Amrit Vrishti. According to the bank’s website, the interest rate for this scheme, which is specifically designed for a tenure of 444 days, has been reduced from 7.05% to 6.85% for the general public. For senior citizens, SBI offers an interest rate between 4% to 7.50%, including the SBI V-Care scheme. After the revision, super senior citizens (aged 80 years and above) will now receive an annual interest rate of 7.45%.
Impact on Senior Citizens
While SBI’s interest rates for regular FDs have seen a significant cut, senior citizens still benefit from a higher rate, particularly under the bank’s special FD schemes. However, the overall trend of reducing FD interest rates across various schemes and tenures will likely impact those who rely on these fixed-income investments, especially in the current economic climate.
As a result of these changes, customers looking to invest in SBI FDs will now earn less on their savings compared to the previous rates, marking another challenge for individuals relying on fixed deposits for stable returns.
