SBI Amrit Vrishti FD Investors Get a Shock: State Bank Cuts Interest Rates on Special Deposit Scheme

State Bank of India (SBI), the country’s largest public sector lender, has delivered disappointing news for fixed deposit investors just ahead of the new year. The bank has reduced interest rates on its popular special fixed deposit scheme, Amrit Vrishti, affecting both new and prospective investors. Along with this, SBI has also lowered interest rates on select regular fixed deposits, reflecting the broader trend of declining rates in the banking system.

The latest revision came into effect on December 15, 2025, and it marks another cut in returns for customers who were relying on this scheme for higher guaranteed income.

What Is SBI’s Amrit Vrishti Fixed Deposit Scheme?

The Amrit Vrishti FD is a special-term deposit scheme offered by SBI with a fixed tenure of 444 days. When the scheme was initially launched, it attracted significant interest due to its comparatively high returns, especially for senior citizens and super senior citizens.

At the time of launch, SBI offered:

• 7.25% annual interest to general customers

• 7.75% to senior citizens

• 7.85% to super senior citizens (aged 80 years and above)

However, amid changing interest rate dynamics, SBI has revised these rates multiple times. The latest cut has further reduced the attractiveness of this once high-yield FD scheme.

Revised Interest Rates on Amrit Vrishti FD

With effect from December 15, 2025, SBI has lowered the interest rates on the Amrit Vrishti FD as follows:

• General customers: 6.60% per annum

• Senior citizens: 7.10% per annum

• Super senior citizens (80+ years): 7.20% per annum

This reduction means investors locking in funds under this scheme will now earn significantly less than what was initially promised when the product was launched.

Earlier Rates vs Current Rates

Before the latest revision, the Amrit Vrishti FD offered higher returns, making it one of the most attractive short-term deposit options among public sector banks. The continued rate cuts, however, have narrowed the gap between special FDs and regular term deposits, reducing the relative advantage of choosing this scheme.

Why Has SBI Cut FD Interest Rates?

Although SBI has not issued a detailed explanation, the rate cut aligns with broader market trends. With policy rates stabilizing at lower levels and banks focusing on managing their cost of funds, many lenders have started trimming deposit rates. Reduced demand for deposits and ample liquidity in the banking system also play a role in these decisions.

For fixed-income investors, especially retirees, such cuts are a setback as they limit opportunities to earn higher risk-free returns.

Key Features of SBI Amrit Vrishti FD Scheme

Despite the rate cut, the Amrit Vrishti scheme continues to offer certain features that may still appeal to conservative investors:

• Tenure: 444 days

• Eligibility: Resident Indians and Non-Resident Indians (NRIs)

• Deposit limit: Less than ₹3 crore

• Interest payout options: Monthly, quarterly, or half-yearly

• Guaranteed returns: Fixed interest for the entire tenure

The scheme applies automatically when customers choose the 444-day tenure while opening an FD.

How Can Customers Invest in This Scheme?

Investing in the Amrit Vrishti FD is simple and accessible through multiple SBI channels. Customers can open the deposit via:

• SBI branch

• YONO SBI mobile app

• YONO Lite app

• SBI Internet Banking

Once the 444-day tenure is selected, the special FD scheme is applied automatically.

What Should Investors Do Now?

For investors who have already booked the Amrit Vrishti FD earlier, the interest rate at the time of booking remains unchanged. However, new investors will have to settle for lower returns. Those planning fresh investments may want to compare returns across banks, explore other special FD schemes, or consider alternatives such as debt mutual funds, depending on their risk appetite and liquidity needs.

Senior citizens, in particular, should evaluate whether post-tax returns from FDs still meet their income requirements or if diversification is necessary.

Bottom Line

SBI’s decision to cut interest rates on the Amrit Vrishti Fixed Deposit scheme comes as a disappointment for conservative investors seeking stable and higher returns. While the scheme still offers safety and predictable income, its reduced rates mean customers need to reassess their fixed-income strategies carefully before investing.

Disclaimer: Interest rates are subject to change. Investors should check the latest rates on SBI’s official channels and consult financial advisors before making investment decisions.