SBI has changed the interest rates it offers on bulk fixed deposits, but the revision does not affect the majority of its retail FD customers.
The latest move by State Bank of India (SBI) applies to domestic bulk term deposits of Rs 3 crore and above, with the biggest reductions being made on shorter-duration deposits. The revised rates came into force on August 15, 2026, according to information published by the bank.
For customers whose SBI fixed deposits are below Rs 3 crore, the bank has retained its existing retail FD rates.
Which Depositors Need To Take Note?
The immediate impact of the revision is on customers placing or renewing large-value deposits.
SBI has reduced the interest rate for general customers by 25 basis points (bps) on bulk FDs with maturities from seven days to 179 days. For deposits running from 180 days to 210 days, the reduction is 10 bps.
There is no rate change for bulk deposits with maturities of 211 days to 10 years.
After the revision, general customers can earn between 5.25 per cent and 6.50 per cent on SBI's bulk fixed deposits, depending on the tenure.
The same shorter-term categories have also seen reductions for senior citizens. Their rates have been cut by 25 bps for seven-day to 179-day deposits and by 10 bps for deposits with tenures of 180 days to 210 days.
SBI has kept senior citizen bulk FD rates unchanged for maturities of 211 days to 10 years. Depending on the tenure, senior citizens can currently earn between 5.75 per cent and 7 per cent on these deposits.
Your SBI FD Is Below Rs 3 Crore? Here's What Changes
For retail depositors, the latest announcement does not alter the existing rate structure.
SBI continues to offer general customers interest rates of 3.05 per cent to 6.40 per cent on regular fixed deposits, depending on the maturity chosen.
Senior citizens continue to get an additional interest benefit, with rates ranging from 3.55 per cent to 7.05 per cent.
Therefore, customers holding regular SBI FDs below Rs 3 crore are not directly affected by the latest bulk-deposit rate revision.
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Maturing Bulk FD? Check The New Rate Before Renewing
The change becomes particularly relevant when a bulk FD reaches maturity.
SBI has clarified that the revised rates apply to both fresh deposits and renewals of maturing deposits. Someone who is due to reinvest a large deposit should therefore check the applicable rate rather than assuming that the earlier rate will continue.
This is especially relevant for shorter tenures, where the latest cuts have been concentrated.
The decision on whether to renew and for how long will also depend on when the depositor may need access to the money.
Large Deposits Come With A Premature Withdrawal Cost
Liquidity is another consideration for investors using bulk FDs.
SBI levies a 1 per cent penalty when a bulk deposit is withdrawn before its maturity date. The penalty applies across tenures and is applicable to both new and renewed deposits.
For someone placing a substantial sum in a fixed deposit, the possibility of needing the money before maturity should therefore be considered before choosing the tenure.
Longer-Term Bulk Rates Remain Unchanged
Despite the latest cuts, SBI has not made a blanket reduction across its bulk FD portfolio.
Deposits with maturities of 211 days to 10 years have retained their existing rates for both general customers and senior citizens.
The latest revision is therefore concentrated on the shorter end of the bulk-deposit maturity range, while regular retail FDs below Rs 3 crore continue under the existing rate structure.
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