India’s largest public sector bank, the State Bank of India (SBI), has delivered a blow to its crores of retail customers. The bank has reduced interest rates on certain short-term fixed deposits (FDs) by 15 basis points (0.15%), effective July 15, 2025. This change will affect both general customers and senior citizens.
If you are planning to invest in fixed deposits or already have short-term deposits with SBI, here’s what you need to know.
🔻 Which FD Tenures Are Affected?
SBI has revised interest rates downward on three short-term FD tenures. The revised rates apply to both general public and senior citizens.
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FD Tenure: 46 to 179 days
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Old Rate: 5.05%
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New Rate: 4.90%
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FD Tenure: 180 to 210 days
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Old Rate: 5.80%
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New Rate: 5.65%
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FD Tenure: 211 days to less than 1 year
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Old Rate: 6.05%
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New Rate: 5.90%
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These changes might impact your short-term savings returns, especially if you’re planning to renew an FD in this range or open a new one.
📉 Latest SBI Fixed Deposit Interest Rates (As of July 15, 2025)
Below is the complete list of latest SBI FD rates for various tenures for general customers and senior citizens:
| FD Tenure | General Public | Senior Citizens |
|---|---|---|
| 7 to 45 days | 3.05% | 3.55% |
| 46 to 179 days | 4.90% | 5.40% |
| 180 to 210 days | 5.65% | 6.15% |
| 211 days to < 1 year | 5.90% | 6.40% |
| 1 year to < 2 years | 6.25% | 6.75% |
| 2 years to < 3 years | 6.45% | 6.95% |
| 3 years to < 5 years | 6.30% | 6.80% |
| 5 years to 10 years | 6.05% | 7.05%* |
*Senior citizens under the SBI WeCare Scheme get an extra 0.50% interest over the regular rates.
🧓 What Is SBI WeCare Scheme?
The SBI WeCare Scheme is designed exclusively for senior citizens and offers an additional 50 basis points (0.50%) on FD interest rates for tenures of 5 years and above. This scheme ensures higher returns and safety for elderly investors.
💡 Should You Still Invest in SBI FDs?
While the reduction in short-term FD rates may appear disappointing, SBI still offers competitive rates for medium to long-term FDs. Senior citizens especially continue to benefit from the WeCare scheme, making long-term investment an attractive option.
If you're looking for liquidity and safety, FD still remains a stable investment tool. However, you may want to compare returns with debt mutual funds or other small savings schemes before locking in your money.
✅ Key Takeaways:
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SBI has cut short-term FD rates (46 to 364 days) by up to 0.15%.
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New FD rates are effective from July 15, 2025.
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Senior citizens still enjoy up to 7.05% interest on long-term FDs.
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SBI WeCare scheme offers extra benefits for elderly investors.
📌 Plan your investments accordingly. If you are planning to invest in a short-term FD, it may be wise to re-evaluate your options, or go for a longer tenure to earn better returns.
