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IIE DIGITAL DESK : The State Bank of India (SBI), India’s largest public sector bank, has announced a cut in its fixed deposit (FD) interest rates by 10 basis points for select tenures, with the revised rates taking effect from April 15, 2025. This change comes as part of the bank’s routine interest rate review, aligning with the current economic climate and monetary trends. The revision is expected to influence retail investors, especially those dependent on fixed income instruments for stable returns. The new SBI FD interest rates apply to deposits below ₹2 crore and are relevant for both general customers and senior citizens.

Under the latest revision, SBI has lowered the interest rate on FDs with a tenure of one year to less than two years from 6.90 percent to 6.80 percent. Other tenures such as two to three years have also seen a reduction of 10 basis points. Long-term FDs of five to ten years remain unaffected and continue to offer 6.50 percent for regular depositors. Senior citizens, who enjoy an additional 50 basis points across all tenures, will now receive up to 7.30 percent interest for deposits maturing between one and two years. The decision to reduce the interest rate follows the Reserve Bank of India’s consistent policy to maintain the repo rate, as the central bank adopts a cautious approach in managing inflation and supporting economic growth. In such a scenario, banks including SBI are rebalancing their interest rate structures to manage funding costs and ensure sustainable margins.

SBI’s FD rate cut could affect a broad segment of investors, particularly retirees and low-risk savers who rely heavily on fixed deposit interest for their regular income. With inflation remaining high and the gap between nominal and real returns widening, the reduction in FD rates may prompt investors to explore alternative investment options such as debt mutual funds, government savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), and other fixed-income securities. However, fixed deposits still remain among the safest investment options for Indian households due to guaranteed returns, flexibility in tenures, and the assurance of capital protection, especially when parked with a trusted bank like SBI.

This rate change is also reflective of surplus liquidity conditions in the banking system and a moderate credit growth environment, which allows banks to optimize their cost of capital. Experts suggest that in the absence of further rate hikes from the RBI, banks may continue to maintain or lower deposit rates in the near term. Investors looking to secure higher returns are advised to lock in their funds at current rates or consider FD laddering strategies to mitigate the impact of future rate changes.

For customers seeking updated SBI fixed deposit rates, it is advisable to visit the official SBI website or contact the nearest branch. The new FD rates are applicable across all SBI branches in India and for both offline and online bookings. Keywords such as SBI FD interest rates 2025, SBI revised fixed deposit rates, SBI senior citizen FD rates, SBI interest rate cut April 2025, fixed deposit interest SBI today, best FD rates India 2025, SBI deposit interest update, and secure investment options with SBI are highly relevant for those researching this topic.