India’s largest public sector bank, the State Bank of India (SBI), has adjusted its fixed deposit (FD) interest rates following the Reserve Bank of India’s (RBI) recent 25 basis point reduction in the repo rate to 6.00%. These changes, effective from April 15, 2025, impact various FD tenures and include the reintroduction of the special “Amrit Vrishti” scheme with updated rates.
For individuals looking for safe investment avenues, understanding these new updates is important. This article breaks down everything you need to know—from revised interest rates to how to make the most of the Amrit Vrishti scheme.
SBI Reduces FD Interest Rates Amid Repo Rate Cut
| Feature | Details |
|---|---|
| Effective Date | April 15, 2025 |
| Repo Rate | Reduced by 25 basis points to 6.00% |
| General FD Rates | Adjusted across various tenures (see detailed table below) |
| Amrit Vrishti Scheme | Reintroduced with revised interest rates |
| Interest Rate (General) | 7.05% per annum for 444-day tenure |
| Interest Rate (Senior Citizens) | 7.55% per annum for 444-day tenure |
| Interest Rate (Super Senior Citizens) | 7.65% per annum for 444-day tenure |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | Less than ₹3 crore |
| Premature Withdrawal Penalty | 0.50% for deposits up to ₹5 lakh; 1% for deposits above ₹5 lakh but below ₹3 crore |
| Investment Channels | SBI branches, Internet Banking, YONO app |
| Scheme Validity | Until March 31, 2025 |
| Official Website | SBI Interest Rates |
The SBI FD rate cut reflects a broader effort to stimulate the economy by making loans cheaper, while still offering competitive returns for savers. The Amrit Vrishti FD scheme stands out for short-term investors seeking slightly better returns than regular FDs. Whether you’re a retiree looking for fixed income or a working professional building your savings, this update helps you plan better.
Understanding the Revised FD Rates
General FD Rates (Below ₹3 Crore)
SBI has revised its FD interest rates across different tenures. Here’s a quick look:
| Tenure | General Public (%) | Senior Citizens (%) |
|---|---|---|
| 7 days to 45 days | 3.50 | 4.00 |
| 46 days to 179 days | 5.50 | 6.00 |
| 180 days to 210 days | 6.25 | 6.75 |
| 211 days to less than 1 year | 6.50 | 7.00 |
| 1 year to less than 2 years | 6.70 | 7.20 |
| 2 years to less than 3 years | 6.90 | 7.40 |
| 3 years to less than 5 years | 6.75 | 7.25 |
| 5 years and up to 10 years | 6.50 | 7.50 |
Spotlight on the Amrit Vrishti Scheme
The Amrit Vrishti scheme is a special fixed deposit plan with a fixed tenure of 444 days. It offers better returns than standard FDs and is ideal for those looking to park funds for a little over a year.
Key Features of the Scheme
- Tenure: 444 days
- Interest Rates:
- General Public: 7.05% per annum
- Senior Citizens: 7.55% per annum
- Super Senior Citizens: 7.65% per annum
- Minimum Deposit: ₹1,000
- Maximum Deposit: Less than ₹3 crore
- Interest Payout Options: Monthly, quarterly, half-yearly, or at maturity
- Premature Withdrawal Penalty:
- 0.50% for deposits up to ₹5 lakh
- 1% for deposits above ₹5 lakh and below ₹3 crore
- Loan Facility: Available
- Investment Channels: SBI branches, Internet Banking, YONO app
- Scheme Validity: Available till March 31, 2025
see also: SBI 444-Day FD Scheme Now Offers 7.65% Return
Practical Example: How Much You Can Earn
Let’s say you invest ₹2,00,000 in the Amrit Vrishti scheme.
- For General Citizens
- Interest Rate: 7.05% per annum
- Maturity Amount (after 444 days): Approx. ₹2,18,729
- For Senior Citizens
- Interest Rate: 7.55% per annum
- Maturity Amount: Approx. ₹2,19,574
These are estimates based on quarterly compounding.
How to Invest in the Amrit Vrishti Scheme
Via SBI Internet Banking or YONO App
- Log in to SBI Internet Banking or open the YONO app.
- Go to ‘Fixed Deposit’ section.
- Select ‘Open Fixed Deposit’.
- Enter the amount and select tenure as 444 days.
- Choose interest payout and maturity options.
- Confirm and submit.
Via SBI Branch
- Visit your nearest SBI branch.
- Ask for the FD opening form.
- Fill in details—especially the 444-day tenure.
- Submit the form and your deposit.
What Does This Mean for Loan Seekers?
While FDs may now offer slightly lower returns on some tenures, borrowers stand to gain. Lower repo rates signal cheaper home loans, auto loans, and personal loans in the coming months. SBI, along with other major banks, is expected to pass on the benefits of reduced interest rates to customers.
see also: Bank Is Giving the Highest Return on 1-Year FD, You Will Get Profit Up to Rs 23,000
SBI Reduces FD Interest Rates Amid Repo Rate Cut FAQs
1. Is the Amrit Vrishti scheme available to NRIs?
No, this scheme is only available for resident individuals and not NRIs.
2. Can I close the FD before 444 days?
Yes, but a penalty of 0.50% or 1% will apply depending on the amount.
3. Is TDS applicable on the interest earned?
Yes, if the total interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), TDS is applicable.
4. Is the scheme available online only?
No. It can be booked via online banking, the YONO app, or by visiting an SBI branch.
5. Will interest rates change again soon?
Interest rates are influenced by RBI’s monetary policy. If inflation remains under control, further changes may occur in the next policy review.
