SBI Cut "Amrit Vrishti" FD Rate to 6.6% — What It Means for Your Saving

State Bank of India (SBI), India's largest public sector lender, has cut the interest rate on its hugely popular 444-day "Amrit Vrishti" fixed deposit scheme from 6.85% to 6.60% per annum. The revision comes into effect on June 15, 2025, and comes after the Reserve Bank of India's recent 50-basis point repo rate reduction in its June monetary policy review. This policy action was meant to control inflation as well as spur economic activity, and so many of the top banks like HDFC Bank, ICICI Bank, and Canara Bank came down with their deposit rates. 

All Investor Category Revised Rates

SBI officially confirmed the revision in a statement: "The interest rate of the specific tenor scheme of 'Amrit Vrishti' (444 days) has been revised from 6.85% to 6.60% with effect from 15-June-2025." While the new base rate for the general public is 6.60%, senior citizens will get 7.10%, and super senior citizens over 80 years of age will get 7.20%. These rates are inclusive of additional interest advantages of 50 and 60 basis points, respectively.

Heavy Charges on Early Withdrawals

SBI still levies heavy charges for early withdrawal of fixed deposits. Deposits up to ₹5 lakh continue to incur a 0.50% charge, while deposits between ₹5 lakh and ₹3 crore incur a 1% charge. Moreover, there is no interest for deposits made seven days from the date of opening.

FD Rates for Other Tenors

Other than the exclusive 444-day Amrit Vrishti offer, SBI FD rates vary between 3.30% (7–45 days) and 6.70% (2–3 years) for general customers. Senior citizens are paid an additional 50 basis points on all maturities, with the maximum rate at 7.30% for five- to ten-year deposits.

What Savers Should Do Now

Experts suggest fixed-income investors must adjust their strategy. FD laddering distributing your investment across multiple tenures—can help lock in better rates while maintaining liquidity. Comparing rates from other banks, especially private lenders, is also wise, as some continue to offer higher yields. For those willing to explore, small savings schemes, debt mutual funds, and non-convertible debentures may offer better post-tax returns.

Brace for More Cuts Ahead

With inflation under control and the RBI willing to ease more if growth slows down, deposit rates could keep declining. Savers need to remain vigilant, check their financial plans from time to time, and be willing to change gears to maximize opportunities. Where interest rates are declining, intelligent planning rather than mere saving is the way to preserve your wealth.

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