SBI FD Rate Cut: Check New Rates for Deposits of Rs 3 Crore and Above

The State Bank of India (SBI) has revised interest rates on certain domestic bulk term deposits with effect from August 15, 2026. The reduction applies mainly to shorter-term bulk FDs, while longer tenures have been left unchanged.

Which SBI FD Rates Have Been Cut?

The revised rates apply to domestic bulk term deposits of ₹3 crore and above.

For these deposits:

• 7 days to 179 days: Interest rate reduced by 25 basis points, or 0.25%.
• 180 days to 210 days: Interest rate reduced by 10 basis points, or 0.10%.
• 211 days to 10 years: No rate cut under this revision.

This means the impact is mainly on customers parking large amounts in SBI FDs for short periods.

What Does a 25 Basis Point Cut Mean?

A basis point is a unit used to describe changes in interest rates. One hundred basis points equal 1%.

Therefore, a 25-basis-point reduction means the interest rate has fallen by 0.25 percentage points, while a 10-basis-point reduction means a 0.10 percentage point cut.

Even a small rate difference can affect the overall interest earned when the deposit amount is several crore rupees.

Senior Citizens Also Affected

The revised bulk FD rates also apply to senior citizens. SBI generally provides resident senior citizens with an additional interest rate over the applicable standard rate.

However, for bulk deposits, senior citizens will also see a reduction of 0.25% for eligible short-term tenures and 0.10% for deposits of 180 to 210 days.

There is no reduction under this revision for bulk FDs with tenures from 211 days to 10 years.

What About Existing SBI Bulk FDs?

The new rates do not normally change the interest rate on an FD that has already been booked and is still running.

The revised rate becomes relevant when you open a new FD or renew an FD after maturity. So, if your high-value SBI FD is nearing maturity, check the latest rate before automatically renewing it.

FDs Below ₹3 Crore Are Not Covered

The latest change is specifically for SBI domestic bulk term deposits of ₹3 crore and above.

So, if you have invested ₹50 lakh, ₹1 crore or ₹2 crore in a standard retail FD, this particular bulk FD rate cut does not directly apply to your deposit.

However, SBI can revise retail FD rates separately, so investors should always check the latest applicable rates before opening a new deposit.

Bulk FD vs Retail FD: What Is the Difference?

The main difference is the amount deposited.

A bulk FD refers to a large-value term deposit. Under the SBI rates discussed here, domestic bulk term deposits are those of ₹3 crore and above.

A deposit below ₹3 crore generally falls under the retail term deposit category. This is why a rate revision for bulk deposits does not automatically mean that retail FD rates have also changed.

Keep Premature Withdrawal in Mind

Putting a large amount into an FD also means considering how easily you may need the money later.

For SBI bulk deposits, a 1% penalty may apply to premature withdrawal, according to the applicable terms. Breaking a high-value FD before maturity can therefore reduce the effective return.

Before investing, consider not just the interest rate but also your liquidity needs, premature withdrawal conditions, tax and TDS implications and the rate that may apply on renewal.

What Should Investors Do Now?

If you are planning to invest ₹3 crore or more in an SBI FD, compare the available tenures carefully. The latest reduction is concentrated in shorter-term deposits, while bulk FD rates from 211 days to 10 years have not been reduced under this revision.

However, unchanged rates today do not guarantee the same rates in the future. Banks can revise deposit rates depending on prevailing conditions.

The key takeaway is simple: check the applicable SBI FD rate on the day you make the investment, choose the tenure according to your financial needs and do not overlook withdrawal and tax-related conditions.

Disclaimer