State Bank of India (SBI) has brought good news for its customers.
At a time when many banks are cutting FD interest rates, SBI has taken a different step.
The bank has increased interest rates on certain fixed deposits (FDs), giving better returns to investors.
SBI Increases FD Interest Rates
SBI has increased interest rates by 0.25% (25 basis points), but this change is only for bulk deposits above ₹3 crore.
The new rates have come into effect from March 15, 2026.
Here are the updated rates:
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%
For senior citizens, the benefit is even higher.
They can now get up to 7% interest on deposits between 1 to 2 years.
Who Will Benefit the Most?
This increase is mainly for large investors.
Only deposits above ₹3 crore will get the higher interest rates.
If your FD amount is less than ₹3 crore, there is no change in rates.
So, small investors will not see any difference in their returns.
What Has Not Changed
There are no changes in FD interest rates for tenures above 2 years.
Also, all existing FDs will continue with their old interest rates.
The new rates will apply only to fresh deposits or renewals.
Important Rule on Premature Withdrawal
If you break your FD before maturity, SBI will charge a penalty.
The bank will reduce your interest rate by 1% in such cases.
So, it is important to plan your investment carefully before opening an FD.
Final Take
SBI’s move shows that the bank is focusing on attracting big investors by offering better returns on large deposits.
While this may not benefit small investors, it is still a positive sign for those planning to invest large amounts in fixed deposits.
