If you have a substantial amount invested in a fixed deposit, even a small movement in interest rates can make a difference to your overall returns. State Bank of India (SBI) has revised the interest rates on its bulk fixed deposits, with the changes limited to certain shorter-duration tenures.
SBI has reduced interest rates by 25 basis points (bps) on domestic bulk term deposits of Rs 3 crore and above for specific tenures. The revised rates took effect from August 15, 2026, according to the bank’s website.
SBI REDUCES RATES ON SHORT-TERM BULK FDs
The latest revision primarily impacts bulk deposits with shorter maturity periods. For general customers, SBI has lowered the interest rate by 25 bps on deposits held for seven days to 179 days.
For deposits with tenures between 180 and 210 days, the rate has been reduced by 10 bps.
There has been no change in the rates for bulk fixed deposits with maturities ranging from 211 days to 10 years.
Following the revision, SBI’s bulk FD rates for general citizens range from 5.25% to 6.50%, depending on the tenure.
SENIOR CITIZENS ALSO FACE RATE REDUCTIONS
Senior citizens have also been affected by the latest revision. SBI has introduced similar reductions in bulk deposit rates for this category.
The bank has cut rates by 25 bps on deposits with tenures of seven days to 179 days, while deposits kept for 180 to 210 days will earn 10 bps less.
Rates for longer tenures of 211 days to 10 years remain unchanged.
The current bulk FD rates for senior citizens range between 5.75% and 7%, depending on the deposit period.
The revised rates apply to both new deposits and renewals of maturing deposits. This means customers whose existing bulk FDs are approaching maturity will also have to consider the updated rates when choosing their next tenure.
WHAT IF THE FD IS WITHDRAWN BEFORE MATURITY?
Customers investing large sums in bulk FDs should also be aware of SBI’s rules regarding premature withdrawals.
The bank has specified that a 1% penalty will be charged when a bulk deposit is withdrawn before its maturity date. The penalty applies across tenures and also covers renewed deposits.
Therefore, investors need to assess their liquidity requirements before committing a substantial amount to a fixed tenure.
REGULAR SBI FDs SEE NO CHANGE
Customers with smaller fixed deposits have not been affected by this revision. SBI has left interest rates on deposits below Rs 3 crore unchanged.
For regular FDs, general customers currently receive interest rates ranging from 3.05% to 6.40%, depending on the tenure. Senior citizens receive an additional interest benefit, with rates ranging from 3.55% to 7.05%.
As a result, most retail FD customers will see no immediate change in their applicable rates. The latest revision is specifically focused on SBI’s bulk deposit category, particularly deposits with shorter maturities.
