Fixed deposit (FD) interest rates across banks have been on a downward trend over the past year, largely due to repeated repo rate cuts by the Reserve Bank of India (RBI). In line with this broader trend, the State Bank of India (SBI) has revised its fixed deposit interest rates for select tenures, with the new rates coming into effect from December 15, 2025.
According to information available on SBI’s official website, the country’s largest public sector lender has reduced interest rates on some popular FD tenures for both general and senior citizens.
FD tenures where rates have been cut
Revision in interest rates on retail domestic term deposits (below Rs 3 crore)
| Tenors | Existing Rates for Public w.e.f. 15/07/2025 | Revised Rates for Public w.e.f.15/12/2025 | Existing Rates for Senior Citizen w.e.f. 15/07/2025 | Revised Rates for Senior Citizen w.e.f. 15/12/2025 |
| 7 days to 45 days | 3.05 | 3.05 | 3.55 | 3.55 |
| 46 days to 179 days | 4.9 | 4.9 | 5.4 | 5.4 |
| 180 days to 210 days | 5.65 | 5.65 | 6.15 | 6.15 |
| 211 days to less than 1 year | 5.9 | 5.9 | 6.4 | 6.4 |
| 1 Year to less than 2 years | 6.25 | 6.25 | 6.75 | 6.75 |
| 2 years to less than 3 years | 6.45 | 6.4 | 6.95 | 6.9 |
| 3 years to less than 5 years | 6.3 | 6.3 | 6.8 | 6.8 |
| 5 years and up to 10 years | 6.05 | 6.05 | 7.05* | 7.05* |
| *Including additional premium of 50 bps under ”SBI We-care” deposit scheme. |
(Source: SBI website)
SBI has lowered the interest rate on fixed deposits with a tenure of 2 years to less than 3 years by 5 basis points (bps). For general citizens, the rate has been reduced from 6.45% to 6.40%, while senior citizens will now earn 6.90%, down from 6.95% earlier.
Amrit Vrishti scheme rates revised
The bank has also revised rates under its special tenor FD scheme, ‘Amrit Vrishti’, which has a tenure of 444 days. The interest rate for this scheme has been reduced from 6.60% to 6.45% for general depositors.
Senior citizens investing in the Amrit Vrishti FD will now earn 6.95%, down from 7.10%, while super senior citizens will receive 7.05%, compared to 7.20% earlier.
Why FD rates are coming down
FD rates have softened over the past year as the RBI cut the repo rate by a total of 125 basis points across four monetary policy meetings. The repo rate is the rate at which the RBI lends money to banks. When the repo rate is reduced, banks get funds at a lower cost, which eventually leads to lower lending rates as well as reduced returns on deposits like fixed deposits.
Non-banking financial companies (NBFCs) also tend to align their deposit rates with the broader interest rate cycle, although their rates may remain slightly higher to attract investors.
Are bank FDs still safe?
Despite falling interest rates, bank fixed deposits remain one of the safest investment options, especially for conservative investors and retirees. Deposits in scheduled commercial banks are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures deposits up to ₹5 lakh per depositor per bank, including both principal and interest.
For investors seeking capital safety, predictable returns, and liquidity, bank FDs—particularly with large public sector banks like SBI—continue to be a reliable choice, even in a lower interest rate environment.