SBI Cuts FD Interest Rates From December 15 2025: The State Bank of India (SBI) has revised its fixed deposit (FD) interest rates with effect from December 15, 2025. The reduction applies to new deposits and renewals opened on or after this date and also impacts the popular Amrit Vrishti special FD. Existing deposits booked before the effective date will continue to earn interest at the old rates until maturity.
Why SBI Has Reduced FD Interest Rates
The rate cut aligns with softer interest rate conditions, easing inflation and liquidity adjustments across the banking system. As market rates moderate, banks periodically recalibrate deposit returns to maintain balance between funding costs and lending needs.
Latest SBI FD Interest Rates Effective December 15, 2025
| Tenure | New SBI FD Rate (General) | New SBI FD Rate (Senior Citizen) |
|---|---|---|
| 7 days to 45 days | Revised downward | Revised rate plus 0.50% |
| 46 days to 179 days | Revised downward | Revised rate plus 0.50% |
| 180 days to 2 years | Revised downward | Revised rate plus 0.50% |
| 2 years to 3 years | Revised downward | Revised rate plus 0.50% |
| 3 years to 5 years | Revised downward | Revised rate plus 0.50% |
Exact rates vary by specific tenure and should be checked on SBI’s official rate card.
Amrit Vrishti FD Scheme: What Has Changed
SBI has also revised the interest rate on the Amrit Vrishti FD in line with the general FD reduction. While the scheme continues to offer relatively better returns than standard FDs, the overall yield is now lower than before. Investors considering this scheme should reassess expected returns against their time horizon.
How the Rate Cut Affects Depositors
New FDs and renewals from December 15, 2025 will earn lower interest, resulting in reduced maturity values. Senior citizens will still receive an additional 0.50 percent over the general public rate, although from a lower base. Deposits opened prior to the revision remain unaffected until they mature.
Is It Still Sensible to Invest in SBI FDs
Despite lower rates, SBI FDs continue to be among the safest savings options, backed by the country’s largest public sector bank. Conservative investors may still prefer FDs for capital protection and predictable returns. Aligning tenure with financial goals and staggering deposits across maturities can help manage reinvestment risk.
How to Open or Renew an SBI FD
Customers can open or renew FDs through the SBI YONO app, internet banking or by visiting a branch. Interest can be received quarterly or at maturity, depending on the payout option selected.
One Quick Takeaway Section
From December 15, 2025, SBI has reduced FD interest rates across tenures, including the Amrit Vrishti scheme, while senior citizens continue to earn an extra 0.50 percent over standard rates.
Conclusion: SBI’s FD rate cut reflects prevailing economic conditions. While returns are lower on fresh deposits, FDs remain a reliable option for risk-averse investors. Reviewing the updated rate card and choosing suitable tenures can help optimize outcomes.
Disclaimer: Interest rates and terms are subject to change. Investors should verify the latest rates directly with SBI before investing.
