State Bank of India (SBI), the country’s largest lender, has cut fixed deposit rates by 20 basis points across tenors effective May 16.

According to the bank’s website, the cut in interest rates on retail domestic term deposits below ₹3 crore is applicable for both the general public and senior citizens.

Deposits for two years to less than 3 years will offer the maximum interest to investors at 6.7 per cent, followed by three years to less than five years which will give a 6.55 per cent interest from May 16.

Fixed deposits of five years to 10 years now get an interest of 6.30 per cent for the general public, while it is 6.5 per cent for deposits of duration one year to less than two years.

The interest rate of the specific tenor scheme of “Amrit Vrishti”(444 days) has also been revised from 7.05 per cent to 6.85 per cent, effective May 16, 2025. Senior citizens and super senior citizens (aged above 80 years) are eligible for their additional benefits in the rate of interest.

Last month also, SBI had cut deposit rates by 10-25 basis points, taking a cue from the policy rate cuts by the RBI.

The Reserve Bank in April had slashed key interest rate by 25 basis points for the second time in a row to support growth facing the threat of reciprocal tariffs by the US. The policy repo rate now stands at 6 per cent.

Shares of SBI were trading at ₹793.95, up 0.27 per cent over the previous close on the BSE.