In line with recent monetary policy signals, the State Bank of India ( SBI ) has once again reduced its fixed deposit (FD) interest rates on select tenures. At the same time, the bank has reintroduced its special deposit scheme, ‘Amrit Vrishti’.
. FD interest rates for tenures ranging from one to three years have been slashed by 10 basis points.
Deposits maturing between one and two years will now offer 6.70% interest for general customers and 7.20% for senior citizens. For deposits maturing between two and three years, the rates have been revised to 6.90% and 7.40% for general and senior citizens respectively.
This reduction follows the Reserve Bank of India’s ( RBI ) second consecutive repo rate cut, which brought the benchmark lending rate down to 6%. Market experts believe SBI’s decision is aimed at easing lending costs, maintaining liquidity, and safeguarding its profit margins.
Alongside the rate cut, SBI has brought back its limited-period fixed deposit product, ‘Amrit Vrishti’. This special FD comes with a 444-day tenure and offers higher returns compared to standard rates. General depositors can earn 7.05%, while senior and super senior citizens will receive 7.55% and 7.65% respectively.
The new scheme replaces the recently discontinued ‘Amrit Kalash’ FD, which had offered up to 7.60% for a 400-day tenure. SBI is positioning ‘Amrit Vrishti’ as an appealing option for investors looking for secure returns amid a gradually softening interest rate environment.
The move is part of a wider trend among banks responding to the RBI’s dovish policy stance. With interest yields expected to decline, lenders are adjusting their deposit offerings and launching time-bound products to attract and retain customers.
