SBI Cuts FD Rates Again, New Rates Effective From May 16

New Delhi: State Bank of India (SBI), the largest bank in India, has reduced the interest rates on fixed deposits (FDs) by 20 basis points. This change is effective from May 16, 2025. The new rates apply to domestic retail term deposits of less than Rs 3 crore. Both the general public and senior citizens will be affected by this change.

Now, FDs for a period of 2 years to less than 3 years will give the highest interest rate of 6.7 per cent. FDs with a tenure of 3 years to less than 5 years will earn 6.55 per cent. The 5-year to 10-year deposits will now offer 6.3 per cent interest to regular customers. For deposits of 1 year to less than 2 years, the rate is 6.5 per cent.

SBI has also changed the rate for its special fixed deposit scheme called “Amrit Vrishti,” which is for 444 days. Earlier, it offered 7.05 per cent interest. Now, it has been reduced to 6.85 per cent. This new rate is also effective from May 16.

Senior citizens will continue to get extra benefits. Super senior citizens, who are above 80 years of age, will also get a higher interest rate as part of their special benefits.

This is the second time in two months that SBI has cut its FD rates. Last month, it had already reduced the rates by 10 to 25 basis points. The bank has been making these cuts after the Reserve Bank of India (RBI) reduced its key interest rate.

The RBI had cut the policy repo rate by 25 basis points in April 2025. This was the second cut in a row. The current repo rate is now at 6 per cent. The central bank is doing this to support the economy. The government is also facing pressure from US tariffs.

Meanwhile, SBI’s share price was slightly up. It was trading at Rs 793.95 on the Bombay Stock Exchange (BSE), rising by 0.27 per cent from the previous day’s close.

(With PTI Inputs)