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.
Amrit Vrishti Scheme Returns
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.