The country’s largest public sector bank, State Bank of India (SBI), has given good news to its customers. At a time when many banks are reducing fixed deposit (FD) interest rates, SBI has taken a different step.
The bank has increased interest rates by 0.25% (25 basis points) on bulk deposits above ₹3 crore.
These new rates have been effective from March 15, 2026. However, there is no change in interest rates for deposits below ₹3 crore.
Updated Interest Rates by Tenure
Here are the new interest rates for bulk deposits:
46 days to 179 days: Increased from 5.10% to 5.35%
180 days to less than 1 year: Increased from 5.60% to 5.85%
1 year to less than 2 years: Increased from 6.25% to 6.50%
Senior citizens will also benefit from a similar 0.25% increase. For example, they can now earn up to 7% interest on deposits between 1 to 2 years.
What Remains Unchanged
There are no changes in the following cases:
FDs with a tenure of more than 2 years
FDs with an amount of less than ₹3 crore
This means the new rates mainly benefit large investors, while small investors will continue to get the same interest rates as before.
Rules for Premature Withdrawal
If you withdraw your FD before maturity, SBI will charge a 1% penalty, which will reduce your interest earnings.
Also, the new interest rates will apply only to new FDs and renewed deposits. Existing or old FDs will not be affected.
Overall, this move shows that SBI is focusing on attracting high-value deposits from large investors.