State Bank of India (SBI), India’s largest bank, has announced two major changes for its customers. While one change relates to FD interest rates, the other could have an impact on savings account customers’ withdrawal limits and fees.
So if you are an SBI customer with money parked in an SBI FD or if you hold a savings account with the bank, this article is important for you. To many, these changes may seem routine to SBI customers, but they can have a significant impact on their deposits.
So, what exactly has SBI changed, then, and how do these announcements affect savings account holders and FD investors?
Revision in SBI FD rates
Interest rates for domestic bulk term deposits of Rs. 3 Crore and above have been revised by SBI. The latest rates take effect on August 15, 2026, replacing the previous revision date of May 15, 2026.
In response to the most recent adjustment, the bank lowered interest rates by 25 basis points for short-term terms of 7 days to 14 days, 15 days to 45 days, and 46 days to 179 days, respectively, from 4.50% to 4.25%, 5.00% to 4.75%, and 5.10% to 4.85%.
On bulk FDs maturing in 180 days to 210 days, SBI has trimmed interest rates by 10 bps from 5.60% to 5.50%. For tenures of 211 days to less than 1 year to 10 years, SBI has kept interest rates unchanged.
The interest rate would stay at 5.60% for bulk FD tenures of 211 days to less than a year, while SBI is giving the maximum interest rate of 6.25% for tenures of one year to less than two years. For bulk FD tenures of two to less than three years and three to ten years, respectively, SBI will continue to provide interest rates of 6.15% and 6%.
Senior citizens continue to receive a consistent 50 basis point (0.50%) premium over the general public rates across all long-term tenors, according to SBI.
| Tenors | Existing Rates in % for non-senior citizens w.e.f. 15/05/2026 | Revised rates for non-senior citizens w.e.f. 15/08/2026 | Existing rates for senior citizens w.e.f. 15/05/2026 | Revised rates for senior citizens w.e.f. 15/08/2026 |
| 7 days to 14 days | 4.5 | 4.25 | 5 | 4.75 |
| 15 days to 45 days | 5 | 4.75 | 5.5 | 5.25 |
| 46 days to 179 days | 5.1 | 4.85 | 5.6 | 5.35 |
| 180 days to 210 days | 5.6 | 5.5 | 6.1 | 6 |
| 211 days to less than 1 year | 5.6 | 5.6 | 6.1 | 6.1 |
| 1 year to less than 2 years | 6.25 | 6.25 | 6.75 | 6.75 |
| 2 years to less than 3 years | 6.15 | 6.15 | 6.65 | 6.65 |
| 3 years to less than 5 years | 6 | 6 | 6.5 | 6.5 |
| 5 years and up to 10 years | 6 | 6 | 6.5 | 6.5 |
Source: SBI
With effect from May 1, 2026, SBI Green Rupee Term Deposit is offered for 3 different tenors: 1111, 1777, and 2222 days, at the same rate as the aforementioned card. Both new deposits and renewals of maturing deposits will be subject to the revised interest rates.
As per the SBI website, the underlying terms and conditions pertaining to bulk and retail term deposits will remain the same; for example, all tenors will be subject to a 1% premature penalty for bulk term deposits.
Note: Individuals should be aware that SBI has not modified the interest rates on domestic retail term deposits under Rs. 3 crore. The interest rate stays at 3.05% for periods ranging from 7 to 45 days, 4.90% for tenures ranging from 46 to 179 days, 5.65% for terms ranging from 180 to 210 days, and 5.90% for terms ranging from 211 days to less than a year. SBI offers interest rates of 6.25%, 6.40%, 6.30%, and 6.05% on long-term fixed deposits for one to two years, two to three years, three to five years, and five to ten years, respectively.
Charges for Basic Saving Bank Deposit Account (BSBD)
Service charges for customers with Basic Savings Deposit Accounts (BSBDs) have been revised by SBI. The bank allows four free cash withdrawals per month. Cash withdrawal transactions beyond the first four free withdrawals in a month are subject to a charge of Rs. 15 + GST (per transaction). The revised service fees will take effect on October 1st, 2026.
Apart from this, the bank has not revised the service charges applicable to Basic Savings Bank Deposit Accounts (BSBD). Such as:
- A Basic RuPay ATM-cum-Debit Card will be issued free of cost, with no annual maintenance charge.
- Depositing or collecting cheques drawn by the Central or State Government will be free of charge.
- No charges will be levied for activating inoperative accounts.
- No account closure charges will be applicable.
- Account holders will be entitled to a minimum of four free withdrawals per month, including transfers and ATM transactions at SBI or other bank ATMs. Digital payment transactions, excluding ATM transactions, such as Point of Sale (PoS) transactions, NEFT, RTGS, UPI and IMPS, will not be counted as withdrawals for determining the monthly limit of four free withdrawals.
Lower-income or unbanked individuals are able to open BSBD accounts with SBI without having to pay any fees or charges. Anybody who does not currently have a BSBD account and has proper KYC documents is eligible to open one either singly or jointly, with either or survivor, former or survivor, anyone or survivor etc, according to SBI.
The customer must declare to the bank that they do not currently have a BSBD account at any bank before creating a new BSBD account or converting an existing savings bank account to a BSBD account.
Key features of SBI BSBD accounts include availability at all branches, no requirement of minimum Average Balance (MAB), no minimum balance amount requirement, no maximum balance/amount limit, one free cheque book of 25 leaves per year to eligible BSBD account holders, digital banking facilities such as YONO and net banking, basic RuPay Card facility for eligible customers, and no monthly deposit limits.
Disclaimer: The interest rates, service charges and other details mentioned in this article are based on information available from the SBI website at the time of publication. Rates and charges may vary depending on the type of deposit, customer category, tenure and applicable terms and conditions. Readers are advised to check SBI’s official website or contact the bank for the latest applicable rates and charges before opening, renewing or modifying any deposit or account.
Every financial journey has a turning point. What’s yours?
Financial Express is launching a new series highlighting real experiences with money, investments, and the taxman. Did a sudden tax rule catch you off guard? Did a piece of financial advice change your life? Your story could provide invaluable, practical lessons for thousands of fellow taxpayers. Share your experience with us. We respect your privacy: no stories will be featured without a direct conversation and your full consent. Thank you.