SBI FD Interest: Good news for SBI customers. In a period where numerous banks are cutting their fixed deposit (FD) interest rates, the State Bank of India (SBI) has opted to raise interest rates on bulk deposits (over Rs 3 crore) by 25 basis points (bps), while maintaining the rates for FDs below Rs 3 crore. As per the bank’s website, these updated rates will take effect from March 15, 2026. Let’s explore SBI’s current fixed deposit interest rates.
Which tenures have seen an increase in FD interest rates?
SBI has raised its fixed deposit interest rates by 25 basis points (bps) for certain tenors. For deposits maturing between 46 days and 179 days, the interest rate has been increased from 5.10% to 5.35%. For tenors from 180 days to less than one year, the rate has been adjusted from 5.60% to 5.85%, and for deposits maturing between one year and less than two years, the rate has been modified from 6.25% to 6.50%.
For senior citizens, the interest rate for FDs maturing between 46 and 179 days has been raised from 5.60% to 5.85%. For FDs maturing between 180 days and less than one year, the rate has been increased from 6.10% to 6.35%, and for deposits maturing between one year and less than two years, the rate has been revised from 6.75% to 7%.
The updated interest rates will be applicable to new deposits as well as renewals of maturing deposits. The bank has stated that all other terms and conditions for retail and bulk term deposits will remain unchanged.
What is the penalty for early withdrawal on SBI bulk deposits?
Bulk term deposits for all tenors will incur a 1% penalty for premature withdrawal. This penalty will apply to all new deposits, including renewals. Therefore, if an investor decides to withdraw their deposit before the maturity date, the interest rate will be decreased by 1% from the applicable rate.
To whom will the new rates apply?
This will apply to new FDs and those FDs that mature and get renewed, all other terms and conditions will remain the same as before.
What to think before investing?
If you’re considering investing a large sum in an FD, this could be a good time. However, small investors should consider other options as rates remain unchanged.
