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SBI Update: Attention those who invest money in FD... SBI has slashed the interest rates..

Shikha Saxena May 22, 2025 07:15 PM

The country's largest public sector bank, State Bank of India (SBI), has cut the interest rates on fixed deposits (FDs). This cut is 20 basis points (bps). This will be applicable on FDs of all tenures. That is, now you will get less interest on FDs in SBI. The new rates have come into effect from May 16.

After this cut, the highest interest rate is now 6.7 percent. This will be available on FDs with a tenure of 2 years to less than 3 years. According to the bank's website, this cut in interest rates on retail domestic term deposits of less than Rs 3 crore is applicable for both the general public and senior citizens.

How much interest will be available now?

Investors will get the highest interest of 6.7 percent on FDs with a tenure of less than 2 years to 3 years. After this, FDs with a tenure of less than 3 years to 5 years will get 6.55 percent interest. These rates have come into effect from May 16. Now the general public will get 6.30 percent interest on FDs with a tenure of 5 years to 10 years. At the same time, 6.5 percent interest will be available on FDs with a tenure of less than 1 year to 2 years.

Changes in special FDs too

The interest rate of the special tenure scheme 'Amrit Vrishti' (444 days) has also been revised. It has been reduced from 7.05 percent to 6.85 percent. This change has also come into effect from 16 May 2025. Senior citizens (above 60 years of age) and very senior citizens (above 80 years of age) will get additional benefits in the interest rate.

The bank had also cut last month.

This cut in FD interest rates has been done after the cut in the repo rate by the Reserve Bank. SBI had also cut the deposit rates by 10 to 25 basis points last month. The Reserve Bank cut the key interest rate by 25 basis points for the second consecutive time in April. Its purpose was to support the growth rate which is facing the threat of tariffs imposed by America. Now the policy repo rate is 6 percent.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.