SBI reduces FD interest rates by 20 bps across all durations following RBI rate cut

The State Bank of India (SBI), the country’s largest lender, has slashed its fixed deposit (FD) interest rates by up to 20 basis points across multiple tenures. The revised rates came into effect on May 16 and apply to retail domestic term deposits under ₹3 crore for both general customers and senior citizens.

As per the updated structure, the interest rate for deposits of 7–45 days has been reduced to 3.30% from the previous 3.50%. Deposits of 46–179 days will now fetch 5.30%, down from 5.50%, while those held for 180–210 days will earn 6.05% instead of 6.25%.

Longer-term deposits have also seen similar reductions. FDs of 211 days to less than one year now offer 6.30%, down from 6.50%. The rate for one-year to less than two-year deposits has been revised to 6.50%, and the two- to three-year tenure now carries a 6.70% rate, down from 6.90%.

The move comes on the heels of the Reserve Bank of India’s decision on April 9 to lower the repo rate by 25 basis points to 6.00% and shift its monetary policy stance from “neutral” to “accommodative.” The RBI’s rate cut aims to support economic growth as inflation continues to decline.

With the central bank’s monetary policy committee scheduled to meet again in early June, analysts expect another possible rate cut, which may further influence deposit and lending rates across the banking sector.