The country’s largest public sector bank, State Bank of India (SBI), has given a setback to its customers by reducing interest rates on Fixed Deposits (FDs). With this change, people investing in SBI FDs will now earn slightly lower returns than before.
SBI has cut FD interest rates by 0.05 percent across all tenures. These revised rates apply to FDs of amounts below ₹3 crore. The new rates have come into effect from December 15, 2025.
This decision comes after the Reserve Bank of India (RBI) reduced the repo rate. Following this move, many banks across the country have started lowering their FD interest rates, and SBI has now joined this trend.
SBI FD Interest Rates: Tenure-Wise Details
SBI offers Fixed Deposit options starting from 7 days up to 10 years, giving customers flexibility based on their financial needs.
Even after the rate cut, SBI continues to offer higher interest rates to senior citizens compared to the general public.
After the latest reduction, SBI is now offering interest rates ranging from 3.05 percent to 7.05 percent, depending on the deposit tenure and customer category.
Here are the updated SBI FD interest rates:
7 days to 45 days
General public: 3.05%
Senior citizens: 3.55%
46 days to 179 days
General public: 4.90%
Senior citizens: 5.40%
180 days to 210 days
General public: 5.65%
Senior citizens: 6.15%
211 days to less than 1 year
General public: 5.90%
Senior citizens: 6.40%
1 year to less than 2 years
General public: 6.25%
Senior citizens: 6.75%
2 years to less than 3 years
General public: 6.40%
Senior citizens: 6.90%
3 years to less than 5 years
General public: 6.30%
Senior citizens: 6.80%
5 years to 10 years
General public: 6.05%
Senior citizens: 7.05%
Special Benefit for Senior Citizens
Senior citizens continue to receive better returns on SBI Fixed Deposits. Under the SBI WeCare Deposit Scheme, senior citizens get an additional 0.50 percent interest on long-term FDs.
Because of this benefit, the highest interest rate of 7.05 percent is available to senior citizens for FD tenures between 5 and 10 years.
What This Means for Investors
Due to the rate cut, FD investors—especially small and middle-class savers—will earn slightly lower interest income than earlier.
However, SBI FDs remain a safe and reliable investment option, particularly for senior citizens who still enjoy comparatively higher returns.