SBI slashes FD, savings rates after repo rate cut: Offers up to 7.05%

SBI lowers fixed deposit and savings rates after RBI's repo rate cut; investors may need to rethink strategies as returns dip across tenures

The country’s largest lender, State Bank of India (SBI), has slashed interest rates on fixed deposits (FDs) across all tenures by 25 basis points (bps), and also lowered savings account rates. The new rates came into effect on June 15 following the Reserve Bank of India’s repo rate cut earlier this month.

 

Rate cut triggered by RBI's move

SBI’s decision aligns with the broader trend among major banks such as HDFC Bank and ICICI Bank, which also reduced deposit rates after the RBI cut the repo rate by 50 bps in its June 6 policy review. This move by the central bank aims to make borrowing cheaper and boost economic growth, but it also means lower returns for savers.

 

SBI’s FD rates in June

Post the rate revision, SBI FDs will now earn from 3.05 per cent to 6.45 per cent for the general public and 3.55 per cent to 7.05 per cent for senior citizens. The interest rates vary by deposit tenure.

 

Here’s the detailed table of rates and tenures offered by the bank

 

General Public		Senior Citizen
Tenors	Revised Rates for Public w.e.f. 15/06/2025	Revised Rates for Senior Citizen w.e.f. 15/06/2025
7 days to 45 days	3.05	3.55
46 days to 179 days	5.05	5.55
180 days to 210 days	5.8	6.3
211 days to less than 1 year	6.05	6.55
1 Year to less than 2 years	6.25	6.75
2 years to less than 3 years	6.45	6.95
3 years to less than 5 years	6.3	6.8
5 years and up to 10 years	6.05	7.05

Source: SBI website

 

SBI savings account rates in June

In a related move, SBI has also reduced its savings account interest rate to a uniform 2.5 per cent per annum for all balances. Earlier, accounts with balances above Rs 10 crore earned 3 per cent, while those below Rs 10 crore earned 2.7 per cent.

 

SBI special FD schemes in June

The Amrit Vrishti FD scheme, which has a 444-day tenure, will now offer 6.60 per cent interest instead of the earlier 6.85 per cent. Senior citizens will continue to receive additional interest as per bank norms.

 

SBI non-callable FD in June

The lender has also adjusted rates for non-callable retail FDs (Rs 1.01 crore to less than Rs 3 crore). One-year non-callable FD now offers 6.55 per cent to general customers and 7.05 per cent to senior citizens on a one-year tenure and 6.85 per cent for general customers and 7.35 per cent for senior citizens on 2 2-year tenure

 

What should investors do?

 

With returns from bank deposits shrinking, the FD investors should:

 

·  Compare FD rates across banks.

 

·  Consider laddering deposits across tenures.

 

·  Explore other fixed-income options like debt mutual funds or government bonds.

 

For risk-averse savers, SBI’s revised rates remain competitive, but the declining interest trend may prompt many to reassess their savings strategy.