Looking to keep your money safe and growing with SBI? Here’s an important update on interest rates that every saver and investor should know.
State Bank of India, the country’s largest bank, has reduced its savings account interest rate. Now, all SBI savings accounts will earn 2.5% per annum, no matter how much money you keep in your account. Previously, the rate was 2.7% for balances below ₹10 crore and 3% for higher balances. This new rate is effective from June 15, 2025.
Fixed Deposit Rates Get a Cut Too
SBI has also lowered the interest rates on fixed deposits below ₹3 crore. The reduction ranges up to 25 basis points (0.25%) across different deposit periods. Here’s a quick look at the new rates:
| Tenure | Old Rate (General) | New Rate (General) | Old Rate (Senior) | New Rate (Senior) |
| 211 days – < 1 year | 6.3% | 6.05% | 6.8% | 6.55% |
| 1 year – < 2 years | 6.5% | 6.25% | 7.0% | 6.75% |
| 2 years – < 3 years | 6.7% | 6.45% | 7.2% | 6.95% |
| 3 years – < 5 years | — | 6.3% | — | 6.8% |
| 5 years – 10 years | — | 6.05% | — | 6.85% |
Special Scheme: Amrit Vrishti Fixed Deposit
The popular Amrit Vrishti FD scheme (444 days) now offers a lower interest rate of 6.60%, down from 6.85%. Senior citizens will get 7.10%, and super senior citizens (80 years and above) receive 7.20%. These changes also take effect from June 15, 2025.
Who Gets Extra Benefits?
- Senior citizens get an extra 0.50% interest on most fixed deposits.
- Super senior citizens (80+) enjoy an additional 0.10% over the senior citizen rate.
- These special rates do not apply to recurring deposits, tax saver FDs, Green Rupee deposits, MODS, Capgain Scheme, or non-callable FDs.
Why the Rate Cut?
These changes follow the Reserve Bank of India’s recent decision to lower the repo rate by 0.50%. When the RBI cuts rates, banks often reduce deposit rates too, making borrowing cheaper but also lowering returns for savers.
What Should You Do?
If you rely on interest income, especially as a senior citizen, it’s a good idea to review your savings and investment plans. Compare rates across banks and consider other investment options if you need higher returns.
