SBI Cuts Fixed Deposit Rates by Up to 20 Basis Points Across Tenures Effective May 16:

Suspense crime, Digital Desk : SBI – State Bank of India, which is a largest public service bank in India – has informed about the decrement in fixed deposit (FD) interest rates by 20 basis points (bps) or less for the offered tenures. These rates will now be in effect from May 16, of 2025, and pertain to retail term deposits under ₹3 crore for both senior citizens and general public.

Updated SBI Fixed Deposit Rates

According to SBI's official page, now the interest rates will be offered at these updated positions:

7 - 45 days: Reduced to 3.30%

46-179 days: Slashed further to 5.30% from 5.50%

180-210 days: Now at 6.05%, down from 6.25%

211 days to <1 year: Further cut to 6.30% from 6.50%

1 year to <2 years: Reduced again to 6.50% from 6.70%

2 years to <3 years: Now at 6.70%, down from 6.90%

These reductions illustrate the movements by the financial institution in precedes to global economic changes and action taken by Reserve Bank of India (RBI).

RBI Policy and Inflation Outlook

On April 9, the RBI cut the repo rate by 25 bps to 6%, shifting the monetary stance “accommodative” from “neutral”. The goal is to stimulate growth with declining inflation in the economy.

The Monetary Policy Committee (MPC) of the central bank will hold its next meeting in early June 2025 for the strategic policy review. Economists believe that it will cut interest rates further if the inflation rate continues to decline.