In today’s time, when people like Fixed Deposit (FD) the most to secure and increase their hard earned money, if the bank cuts interest rates, it is a big shock for the common man. Recently, the country’s largest government bank State Bank of India (SBI) has cut its FD Interest Rates. With this decision, those who make millions of SBI FD will feel a direct impact. Especially those people who were expecting their savings to get good returns by putting them in FD, this news is disappointing for them.
This deduction of SBI has come after the reaction in Reserve Bank of India (RBI). In the last two policy meetings, the RBI had cut the repo rate by a total of 50 basis points, after which SBI has also reduced its deposit rates. This decision has been taken keeping the country’s economic condition, inflation and trends of global markets. Let us know in detail what will be the effect of SBI FD Interest Rate Cut, what are the new rates, and what can happen next.
SBI FD interest rate cut 2025: full observation
The changes made by SBI to the FD interest rates will directly affect the savings. Below the table has a brief overview of SBI FD interest rates:
| Speciality | Description |
| Bank name | State Bank of India (SBI) |
| New interest rates implemented | From 16 May 2025 |
| Cause of deduction | RBI Repo Rate Decreased |
| Interest rate reduction | 10-20 Base Point (0.10%-0.20%) |
| 444 days special FD | 6.85% (General), 7.35% (Senior Citizen) |
| General fd range | 3.50% – 6.90% (General), 4.00% – 7.50% (Senior) |
| Minimum investment | ₹ 1,000 |
| Maximum investment | Up to ₹ 3 crore (Retail FD) |
| Additional benefits | 1% additional interest to SBI Staff |
Why change SBI FD interest rates?
- RBI has cut the repo rate by 50 basis points.
- There is a trend of rate cutting in the banking sector due to fall in inflation and economic lethargy.
- Depositors will get less interest, but it may be beneficial for loans.
SBI FD Interest Rate Cut 2025: Main things
The most discussed 444 -day Amrit Vrishti FD Scheme has been in the most discussion after SBI cuts FD interest rates. The interest rate in this scheme has now come down to 6.85% (General) and 7.35% (Senior Citizen). Earlier this rate was 7.05% (General) and 7.55% (Senior).
SBI FD Interest Rates (as per May 2025)
| Duration | Old rate (general) | New rate (general) | Old Rate (Senior) | New Rate (Senior) |
| 7 days to 45 days | 3.50% | 3.50% | 4.00% | 4.00% |
| 46 days to 179 days | 5.50% | 5.50% | 6.00% | 6.00% |
| 180 days to 210 days | 6.25% | 6.25% | 6.75% | 6.75% |
| 211 days to 1 year | 6.50% | 6.50% | 7.00% | 7.00% |
| 1-2 years | 6.80% | 6.70% | 7.30% | 7.20% |
| 2-3 years | 7.00% | 6.90% | 7.50% | 7.40% |
| 3-5 years | 6.75% | 6.75% | 7.25% | 7.25% |
| 5-10 years | 6.50% | 6.50% | 7.50% | 7.50% |
| 444 days (special) | 7.05% | 6.85% | 7.55% | 7.35% |
Note: These rates are applicable to FD of less than ₹ 3 crore. There are different rates for Bulk Deposit (above ₹ 3 crore).
Who will affect SBI FD interest rate cut?
- General Public: Now the interest on FD will be reduced, which will reduce returns on savings.
- Senior Citizens: They will still get 0.50% additional interest, but the total returns will be reduced.
- SBI Employees: They will get 1% more interest from the card rate, that is, more benefit than the rest of the people.
- Loans takers: Loans can be cheaper due to decrease in interest rates, which can reduce EMI.
What will happen next? (SBI FD Interest Rate Future Trend)
SBI has cut FD interest rates for the second time in 2025. Experts believe that if inflation rate further or RBI reduces the repo rate again, other banks including SBI can also cut FD interest rates further.
Possible cause:
- Decline in inflation
- RBI’s softening in monetary policy
- Global markets lethargic
Should investors invest in FD?
- If you want safe investment then FD is still a good option, but the return may be reduced.
- The market is still getting better interest from the market for senior citizens.
- If you want more returns, you can see mutual funds, bonds or other options.
SBI Amrit Vrishti FD Scheme: What is special?
SBI’s Amrit Vrishti FD Scheme is a special tenure (444 days) FD, in which the interest rate has now been reduced compared to earlier.
- General Customer: 6.85% Interest
- Senior Citizen: 7.35% interest
- Super Senior Citizen: 7.45% Interest
This scheme is for limited period and does not have premature withdrawal facilities.
SBI FD Interest Rate Cut: Benefits and Damage
Advantage
- EMI will be cheaper for loans takers.
- Liquidity will increase in economy.
Loss
- Those investing in FD will get less interest.
- The income of senior citizens and retired people will be affected.
- The return of savings will decrease.
Suggestions for investors after FD Interest Rate Cut
- Review your financial planning.
- Apart from FD, consider other investment options such as mutual funds, post office schemes, bonds etc.
- Invest in Senior Citizens FD Schemes, where additional interest is received.
- Apply FD on different tenures in small parts so that the effect of change in interest rates is reduced.
SBI FD interest rate change: last 3 years trend
| Year | 1-2 years FD (General) | 2-3 years FD (General) | 1-2 years FD (Senior) | 2-3 years FD (Senior) |
| 2022 | 6.75% | 6.75% | 7.25% | 7.25% |
| 2023 | 6.80% | 7.00% | 7.30% | 7.50% |
| 2024 | 6.80% | 7.00% | 7.30% | 7.50% |
| 2025 | 6.70% | 6.90% | 7.20% | 7.40% |
Frequently asked questions (FAQ)
Q1. Who will have the most impact of SBI FD interest rate cut?
A1. The biggest impact will be on those who had made a plan to get FD recently or soon. Senior citizens will also feel a decrease in returns, but they still get additional interest.
Q2. Can SBI also reduce the FD interest rate further?
A2. If RBI reduces repo rate or inflation rate further, other banks including SBI can also reduce interest rates.
Q3. Is SBI FD still safe?
A3. Yes, SBI FD is still one of the safest investment options, but may decrease the return.
Q4. Will senior citizens get more interest?
A4. Yes, senior citizens get 0.50% more interest than normal customers.
conclusion
SBI FD Interest Rate Cut 2025 has shocked millions of investors. Now those who make FD will get less interest, which will affect the savings. However, this policy of the bank is according to the country’s economic condition, inflation and the policy of RBI. Investors should review their financial strategy and also pay attention to other options besides FD.
Disclaimer:
This article has been written with the aim of giving full information. The news of cutting the SBI FD interest rates is absolutely correct and this can also be confirmed on the bank’s website. Always confirm the bank’s official website or branch before investment. FD is a safe investment, but changes in interest rates directly affect your returns. Therefore, do financial planning carefully.
