SBI Lowers Interest on Savings and Term Deposits
New Rates Take Effect June 15, Including Scheme Updates
India’s largest public sector lender, the *State Bank of India (SBI), has officially revised its interest rates on both **savings accounts and fixed deposits, with the changes coming into force from June 15, 2025. This move comes shortly after the Reserve Bank of India’s repo rate cut, prompting banks to adjust their deposit and lending rates accordingly.
Savings Interest Rate Hits New Low
SBI has brought down the interest rate on its savings bank account to 2.5%, now marking the lowest rate the bank has ever offered. This cut will affect both **existing account holders and new customers, and reflects the ongoing trend of softening deposit returns* following the central bank’s monetary policy easing earlier in the month.
Fixed Deposit Rates Slashed Across Tenures
In tandem with the reduction in savings rates, SBI has also trimmed its *fixed deposit (FD) rates by 25 basis points* for deposits up to ₹3 crore. This adjustment applies across *all maturity periods, impacting both fresh deposits and those being renewed. The bank is aligning its interest payout structure with the broader **liquidity environment and funding cost management* objectives.
Amrit Vrishti Scheme Now at 6.85%
SBI has also introduced changes to the Amrit Vrishti special fixed deposit scheme, adjusting the offered return to 6.85%, effective June 15, 2025. This revised rate will be applicable to both senior citizens and super senior citizens, without any differential treatment. The update is part of SBI’s regular efforts to restructure its deposit schemes in line with shifting financial market conditions and evolving customer expectations.
Impact on SBI Customers
These rate changes are likely to affect depositors’ earnings, especially for those who rely heavily on interest income from traditional banking instruments. Investors may now find themselves looking toward alternative investment vehicles such as debt mutual funds, equity-linked products, or government bonds to compensate for reduced returns. Reviewing and diversifying portfolios will be important steps for individuals aiming to preserve their financial stability in a low-rate environment
Summary:
SBI just hit the brakes on your savings with a fresh rate cut—bringing savings interest to an all-time low and trimming FDs across the board. Even the once-glamorous Amrit Vrishti scheme isn’t spared, now capped at 6.85% for seniors. Translation? If you’re counting on bank interest to grow your money, it might be time to get a little more creative with your portfolio. Safe is fine, but smart is better.
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