SBI Bulk FD Rates Cut: What Investors Must Know

State Bank of India (SBI), the nation’s largest lender, has altered its interest rates for domestic bulk fixed deposits valued at ₹3 crore and above. These revisions, which specifically target shorter maturities, became effective on August 15, 2026.

The adjustments mean that general customers will see reductions in certain tenure brackets. Deposits maturing between seven and 179 days have experienced a 25 basis point (bps) decrease, while those with tenures from 180 to 210 days face a 10 bps cut.

Understanding the Rate Adjustments

For general customers, the new interest rates on bulk fixed deposits now span from 5.25% to 6.50%, depending on the chosen tenure. No changes were made to rates for deposits with maturities ranging from 211 days to 10 years.

• Deposits for 7-179 days: 25 bps reduction
• Deposits for 180-210 days: 10 bps reduction
• New rates for general customers: 5.25% to 6.50%

Senior citizens are also affected by these revisions for similar short-term bulk deposits. They will experience a 25 bps reduction for tenures of seven to 179 days and a 10 bps cut for 180 to 210 days.

Impact on Senior Citizens

Despite these changes, senior citizens continue to receive preferential rates. Their rates for longer-term deposits, specifically those from 211 days to 10 years, remain unchanged.

• Senior citizen deposits for 7-179 days: 25 bps reduction
• Senior citizen deposits for 180-210 days: 10 bps reduction
• New rates for senior citizens: 5.75% to 7%

It is important for investors to note that these revised rates apply to both newly opened bulk deposits and the renewal of existing ones. This prompts a review of investment strategies before reinvesting funds.

Important Considerations for Investors

Customers should also be aware of the penalty structure for early withdrawals. A 1% penalty is levied for premature withdrawals of bulk deposits, a rule consistent across all tenures.

Retail Deposits Remain Unchanged

Crucially, customers holding retail fixed deposits, defined as those below ₹3 crore, will not be impacted by these recent modifications. SBI has maintained its existing retail FD rates.

• General retail FD rates: 3.05% to 6.40%
• Senior citizen retail FD rates: 3.55% to 7.05%

This distinction highlights that SBI’s latest adjustments are specifically aimed at the bulk-deposit segment, particularly affecting those with shorter investment horizons.