SBI FD Rate: State Bank of India (SBI) has reduced the interest rate on fixed deposits (FDs) of all maturity periods by 0.20% from May 16, 2025. This new rate will be applicable on retail FDs of less than Rs 3 crore and will also affect senior citizens.
SBI FD Rate: State Bank of India (SBI) has reduced the interest rate on fixed deposits (FDs) of all maturity periods by 0.20% from May 16, 2025. This new rate will be applicable on retail FDs of less than Rs 3 crore. According to the information given on the SBI website, this reduction on retail domestic FDs of less than Rs 3 crore will be applicable to senior citizens along with common investors.
What is the new rate implemented
According to the new rate implemented by the State Bank of India, FDs with a duration of less than two to three years will now get 6.7% interest. At the same time, the interest rate on FDs of less than three to five years has come down to 6.55%. 6.30% interest will now be available on a duration of five to ten years and this interest rate will be 6.5% on FDs of less than one to two years.
Amrit Vrishti Yojana also cut
The interest rate on SBI’s scheme ‘Amrit Vrishti’, which has a duration of 444 days, has also been reduced. Earlier, 7.05% interest was being given on this scheme, which has now been reduced to 6.85%. However, the additional benefits of interest on FD for senior citizens and citizens above 80 years of age will remain the same as before.
What is the reason behind this decision of State Bank
Earlier in April also, SBI had cut the deposit rates from 0.10% to 0.25%. This decision has been taken after the Reserve Bank of India (RBI) cut the repo rate by 0.25% for the second consecutive time. After this cut, the repo rate has now become 6%.
This step has been taken by the bank in view of the changes in the monetary policy and it will directly affect the returns received by investors on FD.
