SBI Interest Rates Hike: Public sector lender State Bank of India (SBI) has raised interest rates on bulk fixed deposits by 25 basis points (0.25%) for investments above ₹3 crore.
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SBI Interest Rates Hike: If you’re planning to invest your savings in fixed deposits (FDs), there’s some good news for you. The country’s largest public sector lender, State Bank of India (SBI), has increased interest rates on bulk fixed deposits by 25 basis points (0.25%). This increase applies to investments above ₹3 crore. However, the old interest rates will remain applicable for deposits below ₹3 crore. According to ET, the new increased interest rates came into effect on March 15, 2026. Let’s learn more about the increased interest rates for different time periods.
Interest rates of up to 6.50% will be available here
Following this increase in FD rates, SBI’s general customers will receive interest rates ranging from 5.35% to 6.50% for different tenures. It’s worth noting that after this increase, the bank will offer 5.35% interest on FDs ranging from 46 days to 179 days, up from 5.10% previously. On FDs ranging from 180 days to less than 1 year, the bank will offer 5.85% interest, up from 5.60% previously. Furthermore, on FDs ranging from 1 year to 2 years, the bank will offer 6.50% interest, up from 6.25% previously.
Senior Citizen Customers Will Earn Up to 7% Interest
On the other hand, interest rates have also been increased for the bank’s senior citizen customers. The bank will now offer senior citizen customers interest rates of up to 5.85% on FDs ranging from 46 days to 179 days, up from 5.60% previously. Furthermore, on FDs ranging from one year to two years, the bank will offer senior citizen customers interest rates of up to 7%, up from 6.75% previously. SBI typically offers its senior citizen customers up to 0.50% higher interest rates.
Penalty for Early Withdrawal
If you’re thinking of prematurely withdrawing your FD, be careful. SBI has now clarified that you’ll be charged a 1% penalty for premature withdrawals. This means that if you withdraw money mid-term, 1% of your interest will be deducted. This new rule applies to all new deposits and renewals of old deposits. This move by the bank is a major update for investors who plan to withdraw their deposits prematurely.
