SBI New FD Rates: Largest PSU, State Bank of India (SBI) has reduced its fixed deposit rates by 10 basis points on several tenures. The new rates are announced after the bank withdrew its popular Amrit Kalash scheme, a move that was fuelled by a 25 bps repo rate cut by RBI in April policy. Furthermore, SBI's other special FD schemes like Amrit Vrishti will give 7.05% returns ahead. The new rates will come into effect from April 15, 2025.
SBI FD Rates:
General Category: On fixed deposits below Rs 3 crore, SBI is going to offer a 6.70% rate on 1 Year to less than 2 years tenure, which is down by 10 bps from the current 6.80%. Further, SBI will pay a 6.90% rate on 2 years to less than 3 years maturity from a 7% rate. Other rates are kept unchanged.
Depositors can continue to earn up to a 3.50% rate from 7 days to 45 days; 5.50% rate on 46 days to 179 days; 6.25% rate on 180 days to 210 days; and 6.75% rate on 3 years to less than 5 years tenures. SBI also kept 6.50% rate unchanged for maturities like 211 days to less than 1 year; and 5 years and up to 10 years.
Senior Citizens: Similarly, an elderly will get a 7.20% rate on 1 Year to less than 2 years tenure, which is lower by 10 bps from a 7.30% rate. Also, senior citizens will get a 7.40% rate on 2 years to less than 3 years tenure, down from current 7.50%.
Meanwhile, 7.50% is offered on 5 years and up to 10 years; 7.25% on 3 years to less than 5 years; 7% on 211 days to less than 1 year; 6.75% on 180 days to 210 days; 6% on 46 days to 179 days; and 4% on 7 days to 45 days tenures. These rates were kept unchanged.
SBI Special FD Rates:
On its website, SBI said, the specific tenor scheme of "444 days" (Amrit Vrishti) at a Rate of Interest of 7.05 % is effective from 15th April 2025 and senior citizens are offered a Rate of interest of 7.55%. Super senior citizens are offered a Rate of Interest of 7.65% with effect from April 15 as well.
SBI is also offering green rupee term deposits on three tenures namely for 1111, 1777 & 2222 days, at 10 bps below Card Rate.
SBI Amrit Kalash Scheme:
SBI has discontinued its Amrit Kalash scheme after RBI trimmed the repo rate by another 25 bps for the second time in a row. The repo rate is brought to 6% now. The majority of banks have linked their lending and FD rates with external benchmarks such as repo rates.
SBI's Amrit Kalash scheme was a popular special FD investment option. Launched in 2023, the FD scheme had a tenure of 400 days. The scheme was available for all categories with special additional rates to senior citizens, staff members and staff pensioners.
It needs to be noted that SBI lowered its latest FD rates by 10 bps, which is shorter by 15 bps from the exact 25 bps cut by RBI on the repo rate.
Also, noteworthily, after SBI, another PSU lender, Bank of India has also withdrawn its special FD scheme. Bank of India's special fixed deposit stood of 400 days, offering as high as 7.3% rate of return. However, the new scheme is discontinued with effect from April 12. Additionally, BOI has also reduced its short to medium term FD rates.
How Repo Rate Impacts FD Rates, as per ClearTax website:
The repo rate increase may be highly beneficial for investors looking for fixed deposits with low risk and competitive rates. FDs are expected to appreciate in value as investments. Changes to the RBI's policy repo rate will impact bank lending and deposit rates. The various banks and NBFCS will make the decisions on the actual rate adjustments.
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