If you’re looking for a safe and rewarding fixed deposit (FD) schemeState Bank of India (SBI) continues to offer attractive interest rates, especially for senior citizens. Even after the recent reduction in interest rates, SBI’s FD options remain among the most reliable and popular choices for Indian investors. In fact, by investing just ₹1,00,000 in a 3-year FDyou can earn up to ₹24,604 in fixed interest.

Let’s break down the key details of SBI’s FD rates and how much you can earn.

SBI Slashes Interest Rates After RBI Repo Rate Cut

Earlier this month, the Reserve Bank of India (RBI) reduced the repo rate by 0.25%leading several banks, including SBI, to adjust their interest rates on both loans and deposits. As a result, SBI has reduced its FD rates by up to 0.25%depending on the tenure and customer category.

Updated SBI FD Interest Rates

As per the latest update:

• General citizens now get 3.50% to 7.05% interest on fixed deposits, depending on the tenure.

• Senior citizens enjoy 4.00% to 7.55% interest—a slightly higher rate to support retirement savings.

For the 2 to 3-year tenurehere are the latest interest rates:

• 6.90% for general citizens

• 7.40% for senior citizens

Earlier, these were 7.00% and 7.50%, respectively—indicating a 0.10% reduction in rates.

How Much Will You Earn by Depositing ₹1 Lakh in a 3-Year FD?

Here’s what your return will look like if you invest ₹1,00,000 in a 3-year fixed deposit:

For General Citizens (Below 60 years):

• Interest Rate: 6.90% per annum (compounded quarterly)

• Maturity Amount: ₹1,22,781

• Interest Earned: ₹22,781

For Senior Citizens (Above 60 years):

• Interest Rate: 7.40% per annum (compounded quarterly)

• Maturity Amount: ₹1,24,604

• Interest Earned: ₹24,604

Thus, senior citizens earn ₹1,823 more than regular depositors for the same investment.

Why Choose SBI FD Schemes?

• Backed by the Government of India

• Flexible tenure options (7 days to 10 years)

• Additional 0.50% interest for senior citizens

• Quarterly compounding for better returns

• Premature withdrawal facility available

• Tax-saving FDs available under Section 80C (5-year lock-in)

How to Open an SBI FD Account

You can open a fixed deposit account through both online and offline methods:

Online mode (via sbi yono or netbanking):

1. Log in to your SBI online banking portal or YONO app

2. Select “Fixed Deposit” option

3. Choose deposit amount, tenure, and interest payout mode

4. Confirm and submit

Offline Mode:

1. Visit your nearest SBI branch

2. Fill out the FD application form

3. Submit identity, address, and PAN proof

4. Deposit the desired amount and collect the receipt