If you're looking for a safe and rewarding fixed deposit (FD) scheme, State 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 FD, you 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.

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.

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 tenure, here 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.

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

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

• Maturity Amount: ₹1,22,781

• Interest Earned: ₹22,781

• 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.

• ✅ 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)

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