SBI Revises FD: Whenever the country’s largest bank changes its interest rates, it directly impacts the common man’s pockets and future plans. Whether fixed deposit holders or home loan and personal loan borrowers, everyone wants to know whether they will benefit or lose. Effective December 15, 2025, the State Bank of India has revised its term deposit and lending rates, somewhat changing the picture for both investors and borrowers.
SBI’s major move following the RBI decision
The Reserve Bank of India’s Monetary Policy Committee recently cut the repo rate by 25 basis points. The repo rate is now down from 5.50 percent to 5.25 percent. Following this decision, it was expected that banks would also revise their interest rates. SBI has taken a similar step, revising not only its lending rates but also the rates of select fixed deposit schemes.
| Category | Revised Details |
|---|---|
| Bank Name | State Bank of India |
| Effective Date | 15 December 2025 |
| RBI Repo Rate | Reduced to 5.25% |
| FD Amount Limit | Below ₹3 crore |
| FD Tenure Affected | Two to three years |
| FD Rate (General Public) | Reduced from 6.45% to 6.40% |
| FD Rate (Senior Citizens) | Reduced from 6.95% to 6.90% |
| Amrit Vrishti Scheme | 444 days special FD |
| Amrit Vrishti Rate Change | Reduced from 6.60% to 6.45% |
| Lending Rates Impact | MCLR and EBLR revised |
The Truth About New Term Deposit Interest Rates
SBI has reduced interest rates on term deposits of less than ₹3 crore, especially those with a two- to three-year term. While general customers previously received 6.45 percent interest for this term, the rate has now been reduced to 6.40 percent. For senior citizens, the rate has been reduced from 6.95 percent to 6.90 percent. While this reduction may seem small, its impact can be felt on long-term investments.
Amrit Vrishti Scheme Also Changed
SBI’s popular special FD scheme, “Amrit Vrishti,” with a term of 444 days, has also seen its interest rate reduced. The scheme previously offered 6.60 percent interest, which has now been reduced to 6.45 percent. This scheme has been particularly popular among those seeking secure returns over the medium term. Despite the rate cut, this scheme remains attractive to many investors.
How will it impact senior citizens?
Fixed deposits are a key source of income for senior citizens. Even a small reduction in interest rates can impact their monthly or annual returns. Although SBI still offers senior citizens higher interest rates than regular customers, they may need to reconsider their investment strategy after the new rates.
Loans will become cheaper due to the reduction in lending rates.
SBI has also revised the interest rates linked to MCLR and EBLR. This will directly benefit those whose home loans, car loans, or other floating rate loans are linked to these benchmarks. EMI relief is expected following the repo rate cut, which may ease some of the financial pressure on middle-class families.
Time to balance investment and debt
This change in interest rates comes at a time when people are cautious about both investment and spending. FD investors may receive slightly lower returns, but borrowers can benefit from EMI relief. Therefore, the right decision is one that best suits your needs and financial goals.
What strategy should you adopt next?
If you are considering investing in FDs, it would be wise to compare different tenures and schemes. If you have a floating rate loan, it is important to understand the impact of the new rates. This move by SBI clearly indicates that the interest rate environment may remain somewhat softer in the future.
FAQs
Q1. When did SBI revise its term deposit and lending rates?
SBI revised its term deposit and lending rates from 15 December 2025.
Q2. Why did SBI reduce FD and lending rates now?
The revision follows RBI cutting the repo rate by 25 basis points.
Q3. Which FD tenures are affected by the latest rate cut?
Deposits with two to three year tenures below ₹3 crore.
Q4. What is the revised FD rate for the general public?
The revised rate is 6.40 percent for eligible term deposits.
Q5. How much interest do senior citizens get now on affected FDs?
Senior citizens now earn 6.90 percent on affected deposits.
Disclaimer: This article is for general information purposes only. Interest rates may change from time to time. Before making any investment or loan decisions, please verify the information on SBI’s official website or with your financial advisor.
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