If you’re considering investing in an SBI fixed deposit (FD), this update is important. The country’s largest public sector bank, State Bank of India (SBI), has cut interest rates on bulk term deposits of Rs 3 crore and above for a limited period. The bank’s new interest rates are effective from August 15, 2026. However, interest rates on fixed deposits of several tenures haven’t been reduced. Interest rates on some larger, longer-term FDs remain unchanged.
SBI FD rates reduced by 25 basis points
SBI has reduced the interest rate by 25 basis points, or 0.25 per cent, on FDs of Rs 3 crore or more for tenors ranging from seven days to 179 days. This means that customers making new FDs during this period will receive lower interest rates than before. This change is significant for customers who make large deposits in a short period. Therefore, be sure to check the new rates before making an FD.
SBI FD interest rates on amount above Rs 3 crore
| Duration | Old rates for general public | New rates for general public | Old rates for senior citizens | New/Revised Rates for Senior Citizens |
| 7 days to 14 days | 4.50% | 4.25% | 5.00% | 4.75% |
| 15 days to 45 days | 5.00% | 4.75% | 5.50% | 5.25% |
| 46 days to 179 days | 5.10% | 4.85% | 5.60% | 5.35% |
| 180 days to 210 days | 5.60% | 5.50% | 6.10% | 6.00% |
| 211 days to less than 1 year | 5.60% | 5.60% | 6.10% | 6.10% |
| 1 year to less than 2 years | 6.25% | 6.25% | 6.75% | 6.75% |
| 2 years to less than 3 years | 6.15% | 6.15% | 6.65% | 6.65% |
| 3 years to less than 5 years | 6.00% | 6.00% | 6.50% | 6.50% |
| Up to 5 years and 10 years | 6.00% | 6.00% | 6.50% | 6.50% |
Reduction in interest rates on FDs of 180 to 210 days
The bank has also reduced interest rates on FDs with maturities of 180 to 210 days. The reduction for this period is 10 basis points, or 0.10 per cent. However, interest rates for FDs ranging from 211 days to 10 years have remained unchanged. This means that the previous interest rates will remain applicable for deposits with these maturities.
FD interest rates for senior citizens also affected
This change by SBI will also affect FDs held by senior citizens. The interest rate for senior citizens has been reduced by 0.25 per cent for FDs with maturities of 7 days to 179 days and by 0.10 per cent for FDs with maturities of 180 to 210 days. However, the interest rate for senior citizens on FDs with maturities of 211 days to 10 years remains unchanged.
The new rates will apply not only to new bulk FDs but also to renewals of maturing FDs. So, if you have a large-value FD that’s about to mature and you’re planning to redeposit it, be sure to check the applicable interest rate at renewal.
1% penalty for premature withdrawal
SBI has also clarified the rules for premature withdrawals from bulk deposits. A 1 per cent penalty will apply for premature withdrawals from bulk FDs of all tenors. This rule applies to both new deposits and renewal FDs. Meanwhile, SBI has stated that it has revised the cash withdrawal charges, effective 1 October 2026.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
