The country’s largest public sector bank, State Bank of India (SBI), has given good news to its crores of customers. The bank has increased interest rates on some of its fixed deposits (FDs).
At a time when many banks are reducing FD interest rates, SBI has taken a different step. It has increased rates by 0.25% (25 basis points) on bulk deposits above ₹3 crore. These new rates came into effect from March 15, 2026.
However, there is no change in interest rates for deposits below ₹3 crore.
Revised FD Interest Rates (Bulk Deposits)
Here is how the interest rates have increased for different time periods:
46 days to 179 days: Increased from 5.10% to 5.35%
180 days to less than 1 year: Increased from 5.60% to 5.85%
1 year to less than 2 years: Increased from 6.25% to 6.50%
Senior citizens also get a similar increase of 0.25%, and they can now earn up to 7% interest on deposits between 1 to 2 years.
What Remains Unchanged
There are no changes in the following cases:
FDs with a tenure of more than 2 years
Deposits of less than ₹3 crore
This means the benefit of increased rates is mainly for large investors. Small investors with deposits below ₹3 crore will continue to get the same interest rates as before.
Premature Withdrawal Rules
If you withdraw your FD before maturity, SBI will charge a 1% penalty, which will reduce your interest earnings.
Also, the new interest rates will apply only to:
New FDs
Renewed deposits
Existing or old FDs will not be affected.
