SBI Cuts FD Rates AGAIN! Latest Fixed Deposit Interest Rates Reduced By 20 Bps; Amrit Vrishti Rate Revised Too

SBI FD rates: The largest PSU bank has reduced its fixed deposit rates for the second time after a month, a trend followed by banks since RBI started to trim repo rate in 2025. With effect from May 16, the State Bank of India (SBI) has cut FD interest rates by 20 basis points for all customers including senior citizens. The bank also revised its Amrit Vrishti rate as well, which is a special FD scheme.

SBI FD Interest Rates:

Senior citizens FD Rates:

Now, the bank is offering a 7.30% rate on 5 years and up to 10 years tenure, compared to the earlier 7.50%. The rate is 7.20% on 2 years to less than 3 years tenure and 7.05% on 3 years to less than 5 years maturity period, compared to 7.40% and 7.25% earlier.

Also, the bank is offering a 7% rate on 1-year to less than 2 years tenure, from the previous rate of 7.20%. The interest rate is 6.80% on 211 days to less than 1-year tenure against 7%, while the new rate is 6.55% on 180 days to 210 days from the previous 6.75%.

Senior citizens now get a 5.80% rate on 46 days to 179 days tenure, as against 6%. For the shortest tenure of 7 days to 45 days, the new rate is lowered to 3.80% from the earlier 4%.

Previously, the bank trimmed rates by 25 basis points on April 15, 2025, after RBI cut the repo rate by 25 basis points for the second time in a row. So far, RBI has reduced the repo rate by 50 basis points during February and April 2025 policies.

General Category FD Rates:

To these individuals, SBI is offering a 3.30% rate on 7 days to 45 days tenure, compared to the previous 3.50%. Also, the bank is offering a 5.30% rate on 46 days to 179 days tenure, compared to the earlier 5.50%. Additionally, the rate is at 6.05% on 180 days to 210 days tenure, as against 6.25%.

Furthermore, SBI's new interest rate is at 6.30% on 211 days to less than 1-year tenure, compared to the earlier 6.50%. The rate is further lower to 6.50% on 1 Year to less than 2 years tenure, as against 6.70% that was offered earlier.

Meanwhile, on the longest tenures, the rate is reduced to 6.70% on 2 years to less than 3 years tenure, compared to earlier 6.90%. Also, the rate is down to 6.55% on 3 years to less than 5 years tenure, from the previous 6.75%. Lastly, the interest rate is lower to 6.30% from the earlier 6.50% on 5 years and up to 10 years maturity period.

SBI Amrit Vrishti FD Rates:

On its website, SBI said, the interest rate of specific tenor scheme of "Amrit Vrishti"(444 days) has also been revised from 7.05% to 6.85% wef 16-May-2025. Senior Citizens and Super Senior Citizens are eligible for their additional benefits in rate of interest.

SBI Patrons FD Rates:

Also, SBI said that an additional benefit of 10 bps is applicable for Super Senior Citizens (80 years and above) over the interest rate applicable for senior citizens. The scheme is not applicable to Recurring Deposit Scheme, Green Rupee Term Deposit, Tax Savings Scheme 2006, MODS, Capgain Scheme and Non-Callable Term Deposits.

SBI Green Rupee Term Deposit Rate:

SBI GREEN RUPEE TERM DEPOSIT is available for three specific tenors of 1111, 1777 & 2222 days, at 10 bps below Card Rate, as per the website.

The latest reduction in SBI FD rates comes ahead of the prediction that RBI may cut the repo rate in June 2025 policy as well. The reason is the sharp cooling in CPI inflation in April 2025.

RBI Repo Rate Cut Outlook:

"CPI inflation decelerated further to 3.2% in April with continued moderation in food prices. Core inflation remains stable at elevated levels, driven by personal care and effects. With an even more benign outlook for inflation, we revise our inflation estimate for FY2026E to 3.5% and stick to our base case of a deeper-than-consensus rate cut cycle of another 75-100 bps by the end of FY2026," as per Kotak Institutional Equities note.

While inflation remains benign, growth prospects remain muted amid increasing uncertainties. The high-frequency indicators continue to indicate tepid growth. Corporate earnings data for 4QFY25 have remained muted amid compressed margins reported by companies and banks reporting weak credit growth. The FMCG companies also remain wary of urban demand. Global uncertainties on trade/tariff policies along with geopolitical risks on India's border also pose downside risk to consumer and investor confidence. Given these headwinds to growth, Kotak's note said, "we stick to our base case of a deeper-than-consensus rate-cutting cycle of 75-100 bps by the RBI by the end of FY2026."

For June 2025 monetary policy, Aditi Nayar, Chief Economist & Head-Research & Outreach at ICRA note said, "We anticipate the CPI inflation to average 3.5% in FY2026, with the prints for Q2 and Q3 sharply trailing the MPC's projections for these quarters, allowing for an additional 75 bps of rate cuts in this calendar year." Adding, the economist said, "A 25 bps rate cut appears forthcoming in the June 2025 policy, followed by easing of 25 bps each in the August and October 2025 policy reviews."