Key Points
- SBI has reduced fixed deposit (FD) interest rates by 20 basis points across all tenures for both general and senior citizens.
- The new rates apply from May 16, 2025, just a month after the previous rate cut.
- FD rates for the general public now range from 3.30% to 6.70% per annum for deposits under ₹3 crore.
- The special Amrit Vrishti FD scheme rate is cut from 7.05% to 6.85% for the public.
- Senior citizens’ FD rates now range from 3.80% to 7.30%, with further reductions in special schemes.
Mumbai: India’s largest government-owned bank, the State Bank of India (SBI), has announced a fresh reduction in its fixed deposit (FD) interest rates for both the general public and senior citizens. The revised rates come into effect from May 16, 2025, and mark the second rate cut in just one month.
What Are the New FD Rates?
According to SBI’s official website, the bank has reduced FD interest rates by 20 basis points (0.20%) across all timeframes for deposits below ₹3 crore.
- General Public: The new FD rates now range from 3.30% to 6.70% per annum for tenures between 7 days and 10 years. Previously, these rates were between 3.5% and 6.9%.
- Senior Citizens: FD interest rates now range from 3.80% to 7.30% per annum under the SBI WeCare Deposit scheme, down from the earlier 4% to 7.50%.
Impact on Special Schemes: Amrit Vrishti Yojana
The popular Amrit Vrishti Special FD Scheme, which has a tenure of 444 days, has also seen a rate cut:
- General Public: Interest rate reduced from 7.05% to 6.85%.
- Senior Citizens: Now earn 7.35% (down from 7.55%).
- Super Senior Citizens: Now receive 7.45%.
Why the Rate Cut?
The back-to-back rate cuts by SBI reflect broader trends in the banking sector, possibly due to changing liquidity conditions, regulatory factors, or efforts to balance loan and deposit growth. For customers, this means slightly lower returns on new and renewing FDs.
What Should Depositors Do?
- Existing FDs: The new rates do not affect FDs already booked before May 16, 2025.
- New/Renewing FDs: The revised rates apply to all new and renewed FDs from May 16 onwards.
- Shop Around: Customers may consider comparing rates across banks or exploring other investment options if seeking higher returns.
SBI’s latest move brings FD rates to a new low for both regular and senior citizen depositors. With the changes effective from May 16, 2025, customers are advised to review their investment plans and consider the new rates before locking in their funds.
