The State Bank of India (SBI) has announced a revision in interest rates on bulk fixed deposits, which may result in lower earnings for depositors. This adjustment specifically affects deposits categorised as bulk, particularly those with larger amounts. The changes took effect on August 15, 2026, as outlined on the bank’s official website.

Impact on Shorter-Term Deposits

The latest revisions are primarily focused on bulk deposits with shorter tenures. For general customers, SBI has reduced the interest rate by 25 basis points on deposits with maturities ranging from seven days to 179 days. Furthermore, deposits held for 180 days to 210 days have seen a decrease of 10 basis points. Importantly, rates for bulk fixed deposits with maturities extending from 211 days to ten years remain unchanged.

For ordinary depositors, the current interest rates for bulk fixed deposits now vary between 5.25 per cent and 6.50 per cent, contingent on the duration of the deposit. This applies equally to both new deposits and those that are due for renewal.

Senior citizens have also been affected by these rate cuts. SBI has implemented similar adjustments for bulk deposits held by senior citizens, mirroring the changes seen for general customers. Specifically, rates have decreased by 25 basis points for tenures falling within the seven to 179-day range and by 10 basis points for those within the 180 to 210-day range. Rates for longer tenures, from 211 days to ten years, have remained consistent for senior citizens as well.

Senior citizens can now expect bulk FD rates to range from 5.75 per cent to 7 per cent, depending on the tenure selected. Customers who currently hold bulk fixed deposits due for renewal should review the new rates carefully before proceeding.

Premature Withdrawal Penalties Explained

Depositors are advised to be aware of SBI’s policy regarding premature withdrawals when considering investments in bulk fixed deposits. The bank imposes a penalty of 1 per cent for withdrawals made prior to maturity across all tenures. This penalty applies not only to new deposits but also to any renewed deposits, indicating that customers should assess their liquidity needs before making large investments into fixed deposits.

Stable Rates for Regular Fixed Deposits

In contrast to the adjustments affecting bulk deposits, rates for smaller fixed deposits below Rs 3 crore remain unchanged. For regular fixed deposits, general customers currently earn interest between 3.05 per cent and 6.40 per cent, influenced by the duration of the deposit. Senior citizens enjoy a heightened benefit, with rates ranging from 3.55 per cent to 7.05 per cent.

Consequently, for a vast majority of retail FD customers, there is no immediate impact on their interest earnings. The recent rate revisions specifically target the bulk deposit segment, particularly those with shorter maturities, leaving regular depositors unaffected.

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