SBI Slashes Bulk FD Rates: August 15, 2026 Changes

State Bank of India (SBI) has implemented a reduction in interest rates for its domestic bulk fixed deposits, specifically those valued at Rs 3 crore and above, effective August 15, 2026. This adjustment predominantly targets shorter-term deposits, influencing both new investments and renewals.

Understanding the Rate Adjustments

For general citizens, bulk deposits with tenures between seven days and 179 days will see a 25 basis points (bps) decrease. Deposits held for 180 days to 210 days will experience a smaller 10 bps reduction in their interest rates. However, bulk fixed deposits with longer durations, from 211 days up to 10 years, remain unaffected by this latest revision.

The revised interest rates for general citizens’ bulk FDs now span from 5.25% to 6.50%, depending on the chosen investment period. These changes directly impact how much earnings depositors can expect from their new or renewed bulk fixed deposits. Customers are advised to review the updated figures carefully.

Impact on Senior Citizens

Senior citizens are also subject to similar rate adjustments across specific tenures. Their bulk deposit rates have been cut by 25 bps for terms of seven days to 179 days, aligning with the changes for general citizens. A 10 bps reduction applies to deposits spanning 180 days to 210 days for this demographic.

Consistent with general citizens, senior citizens’ bulk FDs with tenures ranging from 211 days to 10 years will not see any alteration in their interest rates. Current bulk FD rates for senior citizens now range from 5.75% to 7%, varying based on the specific tenure selected. This ensures a differentiated, yet adjusted, offering for senior investors.

Key Details for Bulk Depositors

These updated rates apply universally to both fresh bulk deposits and the renewal of existing ones. Depositors whose bulk FDs are maturing should evaluate these revised rates before committing to their next investment cycle to understand potential earning shifts. The bank’s policy ensures immediate application of these new structures.

SBI maintains a 1% penalty for premature withdrawals of bulk deposits, a crucial detail for investors. This penalty is consistently applied across all tenures for new and renewed bulk deposits. Therefore, careful consideration of liquidity requirements before making a significant commitment to a bulk fixed deposit is strongly advised.

Distinction from Regular Fixed Deposits

Crucially, the interest rates for regular SBI fixed deposits, which are those below Rs 3 crore, remain unchanged. This means the latest rate revision specifically targets the bulk deposit segment and does not affect the majority of retail FD customers. Regular FDs offer a different investment profile.

General citizens’ regular FDs continue to earn between 3.05% and 6.40%, depending on their tenure. Senior citizens receive an enhanced rate of 3.55% to 7.05% for their regular fixed deposits. This distinction highlights SBI’s targeted approach to deposit rate adjustments, focusing on large-scale investments.