SBI Customers Alert: New Interest Rates Now in Effect!
In a move that has come as a major shock to depositors, the State Bank of India (SBI) — the country’s largest public sector bank — has reduced interest rates on fixed and recurring deposits, effective today.
New Delhi: In a move that has come as a major shock to depositors, the State Bank of India (SBI) — the country’s largest public sector bank — has reduced interest rates on fixed and recurring deposits, effective today.
RBI Rate Cuts Trigger FD Interest Rate Reduction
The decision follows the Reserve Bank of India’s (RBI) move to cut the repo rate by 50 basis points across its last two bi-monthly policy meetings. In line with this, SBI has adjusted its deposit rates, citing macroeconomic trends and monetary easing.
While this is bad news for depositors, those taking loans may benefit from the lower interest rate environment.
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Revised SBI FD Rates: What You Need to Know
SBI announced a 20 basis point reduction across various maturity tenures for deposits under ₹3 crore. The cut also applies to the popular 444-day special fixed deposit scheme.
- Old Rate (444-day FD, general customers): 7.05%
- New Rate (effective May 16, 2025): 6.85%
Senior citizens, however, will still enjoy an additional 50 basis points, making their new rate 7.35% for the same tenure.
Who Will Be Affected?
These revised rates are applicable to:
- Retail domestic term deposits under ₹3 crore
- General public and senior citizens
Note: Deposits above ₹3 crore are classified as bulk deposits and are subject to different interest rates.
SBI Employees Get a Better Deal
Despite the cuts for the public, SBI employees continue to receive an additional 100 basis points over the card rate, providing them with a significantly higher return on fixed deposits.
Second Interest Rate Cut in 2025
This marks the second time in 2025 that SBI has reduced FD rates following repo rate cuts by the RBI. Experts predict 2–3 more reductions in the coming months, depending on inflation and global economic factors.
📌 Key Highlights
- Effective Date: May 16, 2025
- New FD Rate (444 days): 6.85% for general public
- Senior Citizen FD Rate (444 days): 7.35%
- Applicable for deposits below ₹3 crore
- SBI staff receive 1% extra interest
