SBI: If you’re considering making a significant fixed deposit (FD) with SBI (State Bank of India), this update is crucial for you. SBI has lowered the interest rates on domestic bulk term deposits of Rs 3 crore and above for a certain period. These new rates took effect on August 15, 2026. Notably, the adjustments in interest rates primarily impact short-term bulk FDs, which will influence both general customers and senior citizens. However, these changes do not apply to general retail FDs of less than Rs 3 crore.
SBI has decreased the interest rate on bulk FDs with maturities between 7 days and 179 days by 25 basis points, or 0.25 percent. For bulk FDs with maturities from 180 days to 210 days, the interest rate has been cut by 10 basis points, or 0.10 percent. Importantly, there have been no alterations to the interest rates on bulk FDs with maturities ranging from 211 days to 10 years. This indicates that customers with substantial deposits at SBI for extended periods will see their interest rates on these maturities remain stable.
Senior citizens are also affected by this change. For them, the interest rate on bulk FDs of 7 days to 179 days has been reduced by 25 basis points, while the rate for 180 to 210 days has been lowered by 10 basis points. There are no changes to the interest rates for senior citizens on bulk FDs of 211 days to 10 years. The new interest rates will apply to new FDs and the renewal of maturing FDs. Therefore, if a customer plans to renew their old bulk FD after maturity, it’s essential to verify the new applicable rate.
Additionally, SBI has clarified the rules regarding premature withdrawals of bulk deposits. A penalty of 1% will be imposed on premature withdrawals for bulk deposits of all tenors. This rule is applicable to both new deposits and renewed FDs. Hence, before committing a large sum to an FD, investors should ensure they won’t need access to the funds in the meantime.
Thus, SBI’s new interest rate changes are primarily important for large investors and customers making bulk FDs of Rs 3 crore or more. However, these changes have not yet affected the regular FDs of smaller investors. Before making an FD, it’s important to understand the term, interest rate, taxes, and premature withdrawal requirements.