The State Bank of India has reduced fixed deposit rates by 20 basis points across all tenors for both the general public and senior citizens. The action comes ahead of another anticipated rate cut in June and comes after the RBI's 25 basis point repo rate cut in April. The RBI also added nearly Rs 5 lakh crore of liquidity to the system, lowering funding costs. HDFC Bank has already reduced rates, and SBI's move is expected to prompt other lenders to follow suit.

Key Highlights

SBI reduced fixed deposit interest rates for both general and senior citizen depositors by 20 basis points across all tenors as of May 16, 2025.

Business loans might become more affordable as funding costs drop in the wake of the Reserve Bank of India's recent 25 basis point repo rate cut and liquidity infusion.

For the second time this fiscal year, SBI has changed its deposit rates. The biggest bank in the nation lowered its fixed deposit rates by as much as 25 basis points on April 15.

SBI's FD rates for the general public are now 3.3% for 7-45 days (previously 3.5%) and 6.3% for 5-10 years (previously 6.5%). Senior citizen rates have also dropped, with the highest now at 7.3% for 5-10 years, which includes the SBI We-care premium (previously 7.5%).

In the Rs 1.01 cr-Rs 3 cr non-callable category, 1- and 2-year FDs now offer 6.8% and 7.1% to the public, respectively, and 7.3% and 7.6% to senior citizens. The Amrit Vrishti (444-day) scheme's rate was reduced from 7.05% to 6.85%. Super senior citizens continue to receive a 10-basis-point premium over the senior rate. Recurring deposits, MODS, and Green Rupee Term Deposits are among the products excluded by the revised rates.

SBI's home loan rates have already fallen in line with the repo rate cut. With the reduction in deposit rates, loans to businesses are expected to become more affordable, as they are linked to the marginal cost of lending.