State Bank of India (SBI) has once again surprised its customers. The bank has once again cut the interest rates on the FD. Let us tell you that SBI has cut the interest rates of its fixed deposit (FD) for both common people and senior citizens, which has become effective from 16 May 2025. According to the bank’s website, SBI has cut the FD rates of all tenures by 20 basis points (bps). Earlier, SBI had reduced the interest rates on FD on 15 April 2025. That is, this is the second cut just a month after the last FD rate cut. So, if you have got an FD in SBI or are thinking of getting one done, then you need to know this news.

New interest rates on FD after the cut

SBI FD SCHEME
SBI FD SCHEME

After SBI cut rates by 20 bps across all tenures, it will offer interest rates between 3.30% to 6.70% per annum (excluding special FDs) to common citizens on FDs for amounts less than ₹3 crores. Earlier, SBI was offering interest between 3.50% to 6.9% per annum on FDs with tenures ranging from 7 days to 10 years. This cut will slightly reduce the returns on your FD.

Duration                            Interest rate till 15 April                Interest rate from 16 May 2025

7 days to 45 days                            3.5%                                                          3.3%

46 days to 179 days                        5.5%                                                          5.3%

180 days to 210 days                     6.25%                                                        6.05%

211 days to less than 1 year          6.5%                                                           6.3%

1 year to less than 2 years            6.7%                                                            6.5%

2 years to less than 3 years          6.9%                                                            6.7%

3 years to less than 5 years          6.75%                                                          6.55%

5 years to 10 years                          6.5%                                                            6.3%

The interest rate of Amrit Vrishti Yojana has also been reduced

SBI has also reduced the interest rate of its special FD scheme, Amrit Vrishti, by 20 bps. According to the bank’s website, “The normal period of Amrit Vrishti Yojana is 444 days, with the interest rate revised from 7.05% to 6.85% for the general public.” The bank offers interest rates between 4% to 7.50% (including SBI We Care) to senior citizens. SBI’s special FD scheme offers senior citizens an interest rate of 7.35% per annum. After the revision, super senior citizens (aged 80 years and above) are offered an interest rate of 7.45% per annum. That is, senior citizens will also face this cut.