21 May 2025 : The country’s largest bank, SBI, has once again reduced interest rates on Fixed Deposits (FDs). It has cut the interest rates by 0.20% across all tenures ranging from 7 days to 10 years. This reduction came into effect from May 16.
Let’s see how much interest you will now earn by depositing money for different durations in SBI, and which FD tenure offers the highest interest rate.
According to the information provided on SBI’s website (SBI latest fixed deposit rates), interest rates have been reduced for both general customers and senior citizens on FDs below ₹3 crore. For FDs with tenure between 2 years and less than 3 years, the highest interest rate offered will be 6.7%. For FDs with tenure between 3 years and less than 5 years, the highest interest rate will be 6.55%. Senior citizens will get an additional 0.5% interest over the general rates for all tenures.
SBI has reduced the interest rate on 7-day FDs from 3.5% to 3.3%. Last month too, the bank had cut interest rates by 0.1% to 0.25%.
Under the new rates effective from SBI, FDs with tenure between 2 and 3 years will now get 6.7% interest. FDs with tenure between 3 and 5 years will earn 6.55%. For 5 to 10 years, the interest rate will be 6.30%, and for FDs with tenure between 1 and 2 years, it will be 6.5%.
SBI’s scheme ‘Amrit Vrishthi’, which has a tenure of 444 days, has also seen a reduction in interest rate from 7.05% to 6.85%. However, additional benefits on FD interest rates for senior citizens and those above 80 years of age will remain as before.
Earlier in April, SBI had already reduced interest rates by 0.10% to 0.25%. This decision was taken following the Reserve Bank of India’s (RBI) second consecutive cut of 0.25% in the repo rate. After this cut, the repo rate is now 6%.
This step by the bank has been taken keeping in view changes in monetary policy and will directly impact the returns investors get on their FDs.
Summary:
SBI has reduced fixed deposit interest rates by 0.20% across all tenures, effective May 16, 2025; senior citizens receive an extra 0.50% benefit.