SBI cuts fixed deposit interest rates again in May 2025, affecting senior citizens and special schemes. Know how much your FD returns will now shrink and what it means for your savings.
SBI Slashes FD Interest Rates Again: What Depositors Must Know
If you were under the impression the FD rates from SBI are stable, guess again. India’s largest lender SBINov reduced its fixed deposit interest rates Further back in mid-April 2025, this fresh cut came just an hour ago. SBI customers will find that their fixed deposits earn less interest starting from May 16, 2025. FD returns have been the silent income of conservative investors so this move had effects which are calmer than it seems.
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Across-the-Board Rate Cut Hits All Tenures
Now, SBI has reduced its FD interest rates by 0.20%(20 basis points) across all tenures it offers. Earlier, the bank used to give deposit-return rates ranging from 3.50%-6.90% a year for deposits of 7 days to 10-year tenure, but that was cut. Now at 3.30% to 6.70%. On paper, the cut might seem marginal, but can make a big difference yearly/longer or for larger amounts in return. This will directly affect the depositors with amount under ₹3 crore.
Special FD Schemes Also Take a Hit
SBI’s top-of-the-line FD plans including the famous Amrit Vrishti scheme too have not been spared even. This special 444 days tenure of the scheme now gives you interest rate of 6.85% as against the earlier 7.05% This shortening of interest rates could also potentially influence future investment decisions for a large category of depositors who had flocked to these slightly better returns.
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Senior Citizens and Super Seniors See Adjusted Rates
FD interest rates are better for senior citizens at the top end as such but some of them are not going to be the same. SBI has hiked the FD interest rates on special FDs to as high as 7.35% per annum, especially for seniors. On the other hand, super senior citizens (80 and above) will get a rate of 7.45% lower than the previous rates. Also, Cheque-Cum-Deposit scheme rates have been reduced to the extent that the fixed deposits seem to be the only safe destination anymore.
SBI’s move shows that the banking space, even for the most traditional of its savings options, is finding its returns squeezed. It might be time for depositors to diversify into other options or consider how much of their FD they should lock in, given the prevailing conditions.
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