In a latest development, the State Bank of India, which is abbreviated as SBI, has cut the interest rates on fixed deposits, effective May 16, 2025. Following this rule, the customers will get less interest on the deposited money.
It is not the first time that SBI has decreased the interest rates; the bank also announced a cut on Fixed Deposits from April 15, 2025.
What does the latest development mean -
According to the official website of the SBI, the bank has cut the FD rates by around 20 basis points (bps) across tenures. Following this cut, the return offered by SBI has been reduced to the range between 3.30% and 6.70% per annum for ordinary citizens for amounts less than Rs 3 crore.
Previously, the bank used to offer interest rates between 3.50% and 6.90% per annum for a time period ranging from 7 days to 10 days.
Changes in Amrit Varsha Yojana -
Following this change, the bank has also cut interest rates offered on its special FD Scheme Amrit Vrishti by 20 bps. In this matter, the official site of SBI announced that the Amrit Vrishti scheme runs for approximately 444 days, and now it has revised its returns to 6.85% from 7.05% for the general public.
Interest rates for Senior Citizens -
Senior citizens are offered an interest rate of 7.35% per annum on SBI's special FD scheme. After the revision, super senior citizens (aged 80 years and above) are offered an interest rate of 7.45% per annum.