State Bank of India (SBI) has caught many FD investors by surprise with an unexpected rate cut decision. Just after bringing some relief by lowering home loan rates, SBI took a sharp turn and reduced the returns on its popular ‘Amrit Vrishti’ FD scheme. From June 15, the revised interest rates will kick in, offering slightly less than what investors were used to.

What’s surprising is that while SBI has trimmed rates only on this specific scheme, other FDs remain untouched. Meanwhile, the move comes hot on the heels of a broader trend across the banking sector. In the past week, giants like ICICI Bank, HDFC Bank, and Canara Bank have also cut FD rates—this wave of reductions followed the Reserve Bank of India’s recent repo rate cut by 50 basis points.

New Returns for ‘Amrit Vrishti’ FD – What’s Changed?

SBI’s ‘Amrit Vrishti’ FD is known for its slightly higher returns and a unique tenure of 444 days. Earlier, common investors used to earn 6.85% per annum on this special FD. Now, that rate has been trimmed to 6.6%, a reduction of 25 basis points.

But it’s not all bad news. The bank is still offering extra perks to senior and super senior citizens. If you’re above 60, you’re eligible for a better deal, 7.10% interest annually. And if you’re 80 or older, there’s an added 10 basis points bump, bringing the return to 7.20%. These rates make the scheme somewhat attractive for the elderly, even after the cut.

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Thinking of Breaking Your FD Early? Read This First

SBI has kept a penalty clause for those who might need to withdraw their deposit before maturity. You will be assessed a penalty of 0.50% for early withdrawal if your deposit is less than ₹5 lakh.

The penalty doubles to 1% for deposits between ₹5 lakh and ₹3 crore. This implies that anyone seeking early liquidity may want to reconsider, even though the plan may still be beneficial for those who intend to keep their deposit for the entire term.

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Final Thoughts

SBI’s latest revision is a response to the wider economic changes that have come after RBI repo rate revisions. While it is a small setback for common investors, senior and super senior citizens can still boast of being provided with competitive interest rates. If you are considering investment in this FD, June 15 is the day when these revisions take effect. So, think twice before doing so.