SBI Hikes FD Interest Rates by Up to 0.25%: Check Latest Returns for Investors

In a positive development for depositors, State Bank of India (SBI) has increased fixed deposit (FD) interest rates on select tenures. The revised rates, effective from March 15, 2026, come as a relief for investors at a time when several banks are either holding or reducing their deposit rates.

This move is expected to benefit both regular customers and senior citizens, offering improved returns on short- to medium-term investments.

SBI Raises FD Rates Across Select Tenures

According to the bank’s latest update, SBI has increased interest rates by up to 0.25% (25 basis points) on specific FD tenures. The revised rates apply to new deposits and renewed FDs only, while existing deposits will continue at previously agreed rates.

Here’s a breakdown of the updated FD rates for general customers:

• 46 days to 179 days: Increased from 5.10% to 5.35%
• 180 days to less than 1 year: Increased from 5.60% to 5.85%
• 1 year to less than 2 years: Increased from 6.25% to 6.50%

These revised rates make short- and mid-term FDs more attractive for investors seeking stable and predictable returns.

Senior Citizens Get Higher Returns

As per SBI’s policy, senior citizens continue to receive additional interest benefits over regular rates. With the latest revision, the updated rates for senior investors are:

• 46 to 179 days: Increased from 5.60% to 5.85%
• 180 days to less than 1 year: Increased from 6.10% to 6.35%
• 1 year to less than 2 years: Increased from 6.75% to 7.00%

This ensures that elderly investors continue to enjoy better returns, making FDs a preferred low-risk investment option for them.

Bulk Deposits Also See Rate Hike

SBI has also revised interest rates on bulk deposits (₹3 crore and above). These deposits will now earn an additional 25 basis points, providing improved returns for high-value investors and institutions.

Applicable Only on New and Renewed FDs

It is important to note that the revised interest rates are applicable only to:

• Newly opened fixed deposits
• Existing FDs that are renewed after maturity

There is no change in other terms and conditions related to FD schemes.

Penalty on Premature Withdrawal Remains

Investors should be cautious about breaking their FD before maturity. SBI continues to impose a 1% penalty on premature withdrawals, which means:

• The applicable interest rate will be reduced by 1%
• Final returns may be lower than expected

Therefore, it is advisable to choose FD tenure carefully based on financial needs.

Why This Move Matters

SBI’s decision to increase FD rates comes at a time when many banks are taking a cautious approach toward deposit rates. By offering higher returns, SBI aims to:

• Attract more retail and bulk investors
• Encourage savings through fixed deposits
• Stay competitive in the banking sector

For investors looking for safe and guaranteed returns, this revision makes FDs a more appealing option.

Conclusion

The latest FD rate hike by State Bank of India is a welcome move for depositors, especially those seeking stable and low-risk investment avenues. With rates increased by up to 0.25% across key tenures, both general customers and senior citizens stand to benefit.

However, investors should always review tenure options and penalty clauses before investing to maximize returns and avoid unnecessary losses.