The State Bank of India (SBI), the country’s largest public sector bank, has once again slashed its Fixed Deposit (FD) interest rates, dealing a blow to conservative investors. According to an official update on the bank’s website, the revised rates came into effect from May 16, 2025.
SBI has reduced the interest rates by 20 basis points (bps) across all tenures for deposits below ₹3 crore. The rate cut applies to both general customers and senior citizens. Special FD schemes are excluded from this revision.
Revised Interest Rates
After the latest reduction, SBI is now offering annual interest rates ranging from 3.30% to 6.70% for regular depositors. This is down from the earlier range of 3.50% to 6.90%.
Senior citizens, who generally receive an additional interest benefit, will now earn 3.80% to 7.30%, compared to the earlier 4.00% to 7.50%. This includes rates under the SBI WeCare scheme, which is specifically designed for senior citizens.
SBI Amrit Vrishti Scheme Also Affected
The interest rates under SBI’s Amrit Vrishti Scheme, a special 444-day deposit plan, have also been revised. General customers will now get 6.85%, down from 7.05%, while senior citizens will receive 7.35%. For super senior citizens (aged 80 and above), the rate under this scheme is now 7.45% per annum.
Second Rate Cut in One Month
This marks the second FD rate cut by SBI in a month. The previous reduction took place on April 15, 2025. Frequent cuts in interest rates are concerning for retirees and senior citizens, who typically rely on fixed deposits for stable and secure returns.
