SBI Increases FD Interest Rates for Deposits, Offers Higher Returns to Customers

State Bank of India (SBI) has announced an increase in fixed deposit (FD) interest rates, bringing good news for customers looking for safer investment options. While several banks have recently reduced their deposit rates, SBI has chosen to move in the opposite direction by raising rates for certain tenures.

According to information shared on the bank’s official website, the revised interest rates came into effect from March 15, 2026. The changes apply mainly to bulk deposits above ₹3 crore, where interest rates have been raised by 25 basis points.

New Interest Rates for Different Tenures

SBI has also revised rates for selected deposit periods for general customers. Deposits maturing between 46 days and 179 days will now earn 5.35% interest, up from the earlier 5.10%.

Similarly, deposits with a tenure of 180 days to less than one year now offer 5.85% interest, compared with the previous 5.60%. For deposits ranging from one year to less than two years, the interest rate has increased from 6.25% to 6.50%.

These revised rates aim to attract customers who prefer fixed deposits as a low-risk investment for steady returns.

Extra Benefits for Senior Citizens

As with most banking schemes, senior citizens continue to receive higher interest rates compared to regular depositors. Under the revised structure, senior citizens will earn 5.85% interest on deposits with tenures between 46 and 179 days, up from 5.60%.

For deposits ranging from 180 days to less than one year, the rate has increased from 6.10% to 6.35%, while deposits between one and two years now offer 7.00% interest, up from the earlier 6.75%.

Bank officials clarified that the revised rates apply only to new deposits and renewed FDs after maturity. Existing terms and conditions for retail and bulk term deposits remain unchanged. However, customers who withdraw their deposit before maturity will face a 1% penalty, which will reduce the applicable interest rate accordingly.

Overall, the rate revision could benefit investors seeking stable returns through fixed deposits, especially at a time when many banks are lowering their deposit interest rates.