Your SBI FDs may earn less after latest rate cut: Check new rates

If you are keeping a large amount of money in a fixed deposit, a small change in the interest rate can affect your returns. State Bank of India (SBI) has now revised the rates on its bulk fixed deposits, although the change is limited to certain shorter tenures.

SBI has cut interest rates by 25 basis points (bps) on domestic bulk term deposits of Rs 3 crore and above for select tenures. The revised rates came into effect on August 15, 2026, according to the bank’s website.

SBI CUTS RATES ON SHORTER-TERM BULK FDs

The latest rate revision mainly affects bulk deposits with shorter maturities. For general citizens, SBI has reduced the interest rate by 25 bps on deposits with tenures of seven days to 179 days.

For deposits kept for 180 days to 210 days, the bank has reduced the rate by 10 bps.

There is no change for bulk fixed deposits with tenures of 211 days to 10 years.

For general citizens, the latest SBI bulk FD rates range from 5.25% to 6.50%, depending on the tenure.

SENIOR CITIZENS ALSO SEE RATE CUTS

Senior citizens are not exempt from the latest revision. SBI has made similar changes to its bulk deposit rates for senior citizens.

The bank has cut rates by 25 bps for tenures of seven days to 179 days and by 10 bps for deposits with a tenure of 180 days to 210 days.

However, rates for longer tenures, starting from 211 days and going up to 10 years, remain unchanged.

For senior citizens, the current bulk FD rates range from 5.75% to 7%, depending on the tenure.

The revised rates will apply to both fresh deposits and renewals of deposits that are maturing. So, customers whose existing bulk FDs are due for renewal will also need to look at the new rates before deciding on the next tenure.

WHAT HAPPENS IF YOU WITHDRAW EARLY?

Depositors should also keep SBI’s premature withdrawal rule in mind before putting a large amount into a bulk FD.

The bank has stated that a 1% penalty will apply if a bulk deposit is withdrawn before maturity. This rule applies across tenures and will be applicable to new deposits, including renewed deposits.

This means investors should consider their liquidity needs before locking away a large sum for a fixed period.

REGULAR SBI FDs REMAIN UNCHANGED

There is some relief for customers with smaller fixed deposits. SBI has not changed the interest rates on deposits below Rs 3 crore.

For regular FDs, general citizens currently earn between 3.05% and 6.40%, depending on the tenure. Senior citizens get an additional benefit, with rates ranging from 3.55% to 7.05%.

So, for most retail FD customers, there is no immediate change in the interest rates. The latest revision is specifically aimed at SBI’s bulk deposit segment, particularly shorter-duration deposits.

– Ends