Good news for SBI FD investors: Bank hikes interest rates on select deposits, check details

The State Bank of India (SBI) raised interest rates on bulk deposits (over Rs 3 crore) by 25 basis points (bps) at a time when many banks are lowering their fixed deposit interest rates. The bank's website states that the updated rates came into effect on March 15, 2026.

State Bank of India (SBI) has increased fixed deposit interest rates for general customers by 25 basis points (bps) on select tenures. For deposits maturing between 46 days and 179 days, the interest rate has been raised from 5.10% to 5.35%. For tenures of 180 days to less than one year, the rate has been increased from 5.60% to 5.85%, while for deposits with a maturity of one year to less than two years, the rate has been revised from 6.25% to 6.50%.

Senior citizens will continue to receive higher interest rates than general customers on these revised tenures, as SBI offers an additional interest rate benefit over and above the standard FD rates. For senior citizens, in case of deposits maturing between 46 and 179 days, the rate has been raised from 5.60% to 5.85%. The rate for tenures of 180 days to less than one year, has been increased from 6.10% to 6.35%, while for deposits with a maturity of one year to less than two years, the rate has been revised from 6.75% to 7%.

The revised rates of interest rates are applicable to fresh deposits and renewals of maturing deposits. All other terms and conditions of retail and bulk term deposits will remain unchanged.

Premature penalty for bulk term deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals. This means that if an investor chooses to withdraw the deposit before its maturity period, the interest rate payable will be reduced by 1% from the applicable rate.