The State Bank of India (SBI) has recently announced the new changes in its Fixed Deposits (FDs) interest rates, which will be effective from December 15, 2025. The bank has decided to lower the rates on the long-term plans, which will affect the returns for those investors who invest for longer periods and will reduce them.
However, the interest rates for most short-term and medium-term deposits will not change, offering stable options for earnings for investors with short-term goals. With these changes, the bank is trying to adapt to the current market conditions.
The changes mainly affect deposits with terms of two to less than three years. The interest rates for most people have dropped by 5 basis points to 6.40%. Now, senior citizens will receive 6.90%, decreased from 6.95%.
Interest rates for short-term deposits and savings accounts of three years or more remain the same. This shows that changes are made carefully and not applied to all types of deposits at once.
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The Reserve Bank of India recently lowered the policy rate by 25 basis points. This change has reduced overall interest rates, leading banks to reconsider how they set their deposit rates. They are under ongoing pressure to attract more deposits.
Here are the changed fixed deposit interest rates from SBI:
| Tenure | Public Rate (%) | Senior Citizen Rate (%) |
|---|---|---|
| 7 days to 45 days | 3.05 | 3.55 |
| 46 days to 179 days | 4.9 | 5.4 |
| 180 days to 210 days | 5.65 | 6.15 |
| 211 days to less than 1 year | 5.9 | 6.4 |
| 1 year to less than 2 years | 6.25 | 6.75 |
| 2 years to less than 3 years | 6.4 | 6.9 |
| 3 years to less than 5 years | 6.3 | 6.8 |
| 5 years and up to 10 years | 6.05 | 7.05 |
Additionally, SBI has also reduced its lending benchmarks or rates due to a recent policy rate cut. Starting December 15, the bank will lower its External Benchmark Linked Rate (EBLR) by 0.25% to 7.90%. This change makes loans linked to external benchmarks cheaper for both new and existing borrowers.
SBI has also reduced its Marginal Cost of Funds–Based Lending Rate (MCLR) by 5 basis points across all terms. The one-year MCLR is now 8.70%. The bank's Base Rate and Benchmark Prime Lending Rate (BPLR) are now both set at 9.90%.
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