SBI cuts fixed deposit, savings account rates: What customers need to know

State Bank of India (SBI) has lowered interest rates on savings accounts and fixed deposits. These changes are effective from June 15, 2025. Here's a breakdown of the details.

SBI Cuts Interest Rates

SBI has lowered interest rates for both savings accounts and FDs. Effective June 15, 2025, this follows RBI's recent policy easing. The new rate for all SBI savings accounts is 2.65%, down 5 bps.

Fixed Deposit Rates

FD rate changes vary by term, with reductions of 5 to 75 bps for deposits under ₹3 crore. For example, 7-45 day FDs are now at 3.00%, down from 3.50%, impacting short-term depositors. Other terms also saw reductions, reflecting the current economic outlook.

SBI Savings Account

The rate cuts also led to the withdrawal of SBI's 'Amrit Kalash' special FD scheme. Depositors now revert to standard FD rates, ranging from 3.00% for short-term to 6.50% for regular customers. Senior citizens get an extra 50 bps, up to 7.00%.

Fixed Deposit Rate Cuts

SBI's move reflects a growing trend. ICICI Bank also recently cut FD rates, offering 6.60% for deposits under Rs 3 crore for 1 day to 10 years. Senior citizens get up to 7.10%. These changes signal an industry-wide interest income restructuring.

FD Rate Reductions

With RBI's accommodative monetary policy, banks are managing costs by cutting deposit rates. For customers, especially risk-averse investors relying on FDs, this may mean exploring alternative investments. As more banks follow suit, depositors should monitor rates and reassess savings strategies.