The State Bank of India (SBI) has announced a significant revision to its FD interest rate structure, effective December 15, 2025. This move reflects the shifting monetary perspective; the country’s largest lender has simultaneously reduced interest rates on Fixed Deposits (FDs) and lowered its lending rates.
This is because of the recent repo rate cut of RBI, which brought down the existing value by 25 bps. However, SBI’s this new step presents a mixed bag for customers: while borrowers stand to benefit from reduced EMIs, savers will see a dip in returns on new deposit bookings.
Here is a detailed walkthrough of the SBI FD rate changes and how they impact your financials so that you can make an informed decision on borrowing and savings.
Deposit Rates Decrease: ‘Amrit Vrishti’ and Term Deposits See a Cut
For the past year, depositors have enjoyed a high-interest rate regime. However, signalling a reversal in the cycle, SBI has reduced FD interest rates on retail domestic term deposits by 5 basis points on some medium-term tenures and a 15 basis point cut for the Amrit Vrishti scheme.
The most notable change affects the popular “Amrit Vrishti” scheme (444 days tenure). The rate has now been adjusted downward to 6.45%, from the previously attractive 6.60%. This adjustment primarily impacts the 1-year to less than 2-year tenure FDs, which is a preferred choice for many short-to-medium-term savers.
SBI’s Revised FD Interest Rates (Effective Dec 15, 2025):
| Deposit Tenor | Existing Rate (w.e.f. 15-Jul-2025) – Public (% p.a.) | Revised Rate Change (bps) | Revised Rate (w.e.f. 15-Dec-2025) – Public (% p.a.) | Revised Rate (w.e.f. 15-Dec-2025) – Senior Citizen (% p.a.) |
| Amrit Vrishti (444 Days) | 6.60% | -15 bps | 6.45% | 6.95% |
| 7 days to 45 days | 3.05% | 0 bps | 3.05% | 3.55% |
| 46 days to 179 days | 4.90% | 0 bps | 4.90% | 5.40% |
| 180 days to 210 days | 5.65% | 0 bps | 5.65% | 6.15% |
| 211 days to less than 1 year | 5.90% | 0 bps | 5.90% | 6.40% |
| 1 year to less than 2 years | 6.25% | 0 bps | 6.25% | 6.75% |
| 2 years to less than 3 years | 6.45% | -5 bps | 6.40% | 6.90% |
| 3 years to less than 5 years | 6.30% | 0 bps | 6.30% | 6.80% |
| 5 years and up to 10 years | 6.05% | 0 bps | 6.05% | 7.05%* |
(Note: The rates reflect the latest revision effective December 15, 2025, following the RBI’s repo rate cut. The maximum reduction in a single FD tenure was 15 basis points (bps). Resident Senior Citizens enjoy an additional 50 bps (0.50% p.a.) premium over the general public rates, with an enhanced benefit on the 5-year and up to 10 years tenure.)
If you are planning to go for SBI’s Amrit Vrishti FD, don’t just jump right in! Use a calculator specific to this scheme, like the SBI Amrit Vrishti calculator, to know your payment and return terms.
What Fall In SBI FD Rate Means For Depositors
If you are a depositor, there can be various changes in your deposit value at SBI, as per the latest FD rate changes:
- Existing FDs: If you have already booked an FD (including Amrit Vrishti) before today, your rate remains unchanged for the duration of the tenure.
- New FDs: Any fresh deposits or renewals made from today onwards will attract the new, lower rates.
- Senior Citizens: While rates have dropped, senior citizens still retain an advantage, earning 0.50% more than the general public. The revised rate for Senior Citizens on the Amrit Vrishti (444 days) scheme is 6.95% p.a. (General Public: 6.45% p.a.). The 7.25% rate is not the current rate.
- Lending Rates: Home Loans and EMIs to Cost Less. With a fall in repo rates, the floating interest rates on the loans will provide more breathing room for borrowers (not lenders).
On the borrowing side, SBI has provided relief to millions of customers. SBI cut its MCLR by only 5 basis points (0.05%) across all major tenors (e.g., One-Year MCLR cut from 8.75% to 8.70%). The bank applies the 25 basis point (0.25%) cut to the External Benchmark Linked Rate (EBLR), which is a different benchmark.
The MCLR is the internal benchmark used to price various loans, including many home and auto loans.
Impact on Borrowers:
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Floating Rate Loans: If your home or auto loan is linked to the MCLR, your interest rate will decrease, but the bank will only adjust your EMI on your next “Reset Date” (which typically happens once a year for MCLR loans). If your loan is linked to the EBLR (Repo Rate), the bank typically adjusts your EMI much faster (usually the next month). This is a crucial distinction because the majority of new loans are EBLR-linked.
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New Borrowers: Customers applying for new loans starting today will be able to avail themselves of these lower interest rates immediately, making housing and vehicle finance more affordable.
| The MCLR is an internal benchmark used to price various loans, while the EBLR is linked directly to the RBI’s repo rate. A reduction in either rate typically signals a drop in EMI obligations for borrowers linked to that benchmark. |
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Market Outlook: Will Other Banks Follow the FD Rate Cut?
SBI often acts as the trendsetter in the Indian banking industry. With this decisive cut in both FD and lending rates, it is highly probable that other major private and public sector banks will review their rates in the coming days.
Actionable Advice for Customers:
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If you are a depositor, there can be various changes in your deposit value:
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- Existing FDs: If you have already booked an FD with SBI (including Amrit Vrishti) before today, your rate remains unchanged for the duration of the tenure.
- New FDs: Any fresh deposits or renewals made from today onwards at SBI will attract the new, lower FD rates.
- Senior Citizens: While rates have dropped, senior citizens still retain an advantage, earning 0.50% more than the general public. For the revised Amrit Vrishti scheme, senior citizens can now expect 6.95% p.a.
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For Borrowers:
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- Floating Rate Loans (EBLR): If your home or auto loan is linked to the EBLR, your interest rate will decrease. This change usually reflects in your EMI in the next monthly cycle.
- Floating Rate Loans (MCLR): Your interest rate will decrease if your loan is linked to the MCLR. However, the bank’s system will reflect this change in your EMI only on your next “Reset Date” (which typically happens once a year for MCLR loans).
- New Borrowers: Customers applying for new loans starting today will be able to avail themselves of these lower interest rates immediately, making housing and vehicle finance more affordable.
As we move into 2026, the SBI FD interest rate as well as the EMI schemes for certain loan cycles appear to be softening. While this reduces the passive income for depositors, it is a welcome change for borrowers and the broader economy, potentially boosting consumption and investment. For the strategic borrowers, this serves as a golden chance to use a personal loan for investment purposes.
Disclaimer: Interest rates are subject to periodic changes. Please verify the latest rates directly with the bank branch or the official SBI website before making any financial commitments.
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