SBI Cuts Interest Rates on Savings Accounts and FDs from June 15
SBI Cuts Interest Rates on Savings Accounts and FDs from June 15
Senior citizens to feel the pinch as deposit returns dip after RBI’s repo rate cut
India’s largest public sector bank, State Bank of India (SBI), has announced a reduction in interest rates on both savings bank accounts and fixed deposits (FDs) below ₹3 crore, effective June 15, 2025. The move follows the Reserve Bank of India’s (RBI) 50 basis points (bps) cut in the repo rate last week.
Key Changes in SBI Interest Rates
Savings Account Rate:
SBI has slashed its savings bank deposit interest rate to 2.5% across all account balances. Earlier, it offered:
- 2.7% on balances below ₹10 crore
- 3% on balances of ₹10 crore and aabove
Fixed Deposit (FD) Rates:
Interest rates on retail term deposits (< ₹3 crore) have been reduced by up to 25 bps across various tenors.
| Tenor | Old Rate (General) | New Rate (General) | Old Rate (Senior) | New Rate (Senior) |
|---|---|---|---|---|
| 211 days – < 1 year | 6.3% | 6.05% | 6.8% | 6.55% |
| 1 year – < 2 years | 6.5% | 6.25% | 7% | 6.75% |
| 2 years – < 3 years | 6.7% | 6.45% | 7.2% | 6.95% |
| 3 years – < 5 years | — | 6.3% | — | 6.8% |
| 5 years – 10 years | — | 6.05% | — | 6.85% |
Special Scheme – Amrit Vrishti (444 days):
- Revised Rate: From 6.85% to 6.60% (w.e.f. June 15, 2025)
Eligibility: Senior Citizens and Super Senior Citizens (80+) continue to get additional benefits:
- Senior Citizens: Extra 50 bps
- Super Seniors: Additional 10 bps over senior citizen rate
Note: This scheme does not apply to Recurring Deposits, Tax Saver FDs, Green Rupee Deposits, MODS, Capgain Scheme, or Non-Callable FDs.
Lending Rate Update
SBI has also revised its repo-linked external benchmark-based lending rate (EBLR) by 50 bps, aligning with the RBI cut. The new home loan interest rates range between 7.5% to 8.45%.
Impact and Industry-Wide Moves
This rate reduction is expected to impact depositors, especially senior citizens who rely on FD interest as a stable income source.
Other banks like HDFC Bank, ICICI Bank, Canara Bank, and Union Bank have also slashed rates.HDFC Bank is now offering a uniform 2.75% interest on all savings account balances (earlier it was 2.75% below ₹50 lakh and 3.25% above that).
While these cuts align with monetary easing efforts, depositors especially the elderly must consider their investment options carefully to ensure financial stability in the face of declining returns.
