State Bank of India's Bold Move: Interest Rates on Fixed Deposits Rise!

The State Bank of India (SBI) has made a significant announcement by increasing interest rates on bulk deposits exceeding Rs 3 crore by 25 basis points (bps). This decision comes amid a trend of many banks reducing their fixed deposit rates, marking a noteworthy policy shift by the country's largest bank.

Details of the Revised Interest Rates

Effective from March 15, 2026, SBI has revised its fixed deposit interest rates for general customers, also raising rates for various tenures. Deposits maturing between 46 days and 179 days will see an increase from 5.10% to 5.35%, while for tenures of 180 days to less than one year, the rate has been adjusted from 5.60% to 5.85%. Additionally, for deposits maturing within one to less than two years, the interest rate has been improved from 6.25% to 6.50%.

Benefits for Senior Citizens

In an effort to promote savings among the elderly, SBI will continue to offer higher interest rates for senior citizens over standard FD rates on these revised tenures. This means that for the same aforementioned tenures, senior citizens will see rates increase from 5.60% to 5.85% for deposits maturing between 46 and 179 days, from 6.10% to 6.35% for tenures of 180 days to less than one year, and from 6.75% to 7% for deposits maturing within one to less than two years.

What This Means for Investors

The revised rates apply to both fresh deposits and the renewal of maturing deposits, indicating a proactive approach by SBI to enhance the attractiveness of its savings products in a competitive market. Despite a penalty for premature withdrawals set at 1%, this initiative could encourage more individuals to save in fixed deposits, providing a boost to the overall savings culture in India.

In summary, SBI’s latest interest rate hikes present a positive development for both general customers and senior citizens, underlining a commitment to fostering savings while responding to market needs.