SBI FD Interest Rates: If you have ₹1 lakh available and want to keep it invested for around one year with relatively low risk, a Fixed Deposit (FD) can be an option worth considering. State Bank of India (SBI), one of India’s largest public sector banks, offers fixed deposits across different tenures.

The applicable interest rate depends on the duration of the deposit and whether the customer is a regular depositor or a senior citizen. For investors, the interest rate is only one part of the calculation.

The final maturity amount also depends on the tenure, deposit type and the way interest is calculated. SBI revised its retail term deposit rates for deposits below ₹3 crore with effect from December 15, 2025. Before opening an FD, customers should check the latest rate applicable on the date of booking because bank rates can change.

SBI FD Interest Rates

FD Tenure	Regular Customers	Senior Citizens
7 to 45 days	3.05%	Higher applicable rate
46 to 179 days	4.90%	Higher applicable rate
180 to 210 days	Check latest SBI rate	Check latest SBI rate
211 days to less than 1 year	Check latest SBI rate	Check latest SBI rate
1 year to less than 2 years	Check latest SBI rate	Check latest SBI rate
2 years to less than 3 years	Check latest SBI rate	Check latest SBI rate
3 years to less than 5 years	Check latest SBI rate	Check latest SBI rate
5 years to 10 years	Check latest SBI rate	Check latest SBI rate

SBI FD Interest Rates for Regular Customers

SBI offers different interest rates depending on the period for which money is kept in the FD. Short-term deposits generally carry different rates from deposits held for one year or longer. For deposits below ₹3 crore, the rate applicable to the selected tenure determines how much interest the customer can earn during the investment period.

As per the rates mentioned for deposits effective from December 15, 2025, regular customers receive 3.05% for deposits maturing in 7 to 45 days. The rate rises to 4.90% for deposits with a maturity period of 46 to 179 days. Customers should check SBI’s latest official rate chart before investing, particularly if they are planning a one-year FD.

SBI FD Rates for Senior Citizens

Senior citizens generally receive an additional interest rate over the standard rate offered to regular customers for eligible fixed deposits. This extra benefit can make an SBI FD more attractive for older investors who are looking for predictable returns from their savings.

The additional rate, however, depends on the applicable SBI deposit scheme and tenure. Therefore, senior citizens should compare the standard rate with the senior-citizen rate for their chosen period before making the deposit. The bank’s latest rate schedule should always be used to calculate the exact maturity value.

What Happens If You Invest ₹1 Lakh in an SBI FD?

Suppose an investor deposits ₹1 lakh in an SBI FD for approximately one year. The amount earned at maturity will depend on the interest rate applicable to the exact tenure. Even a small difference in the interest rate can change the final interest earned, so investors should not calculate returns solely on the basis of the principal amount.

The actual maturity amount may also differ depending on whether the FD is cumulative or non-cumulative. In a cumulative FD, interest is generally accumulated and paid at maturity, while non-cumulative deposits can provide interest payouts at selected intervals. Investors should choose the option according to their cash-flow requirements.

Five Important Things to Know About SBI FDs

• SBI offers different FD interest rates for different deposit tenures.
• Deposits below ₹3 crore fall under the retail term-deposit rate structure mentioned above.
• Senior citizens can receive an additional interest benefit on eligible deposits.
• The maturity amount depends on the applicable rate, tenure and deposit type.
• FD rates can change, so investors should verify the latest rate before booking a deposit.

SBI FD Tenure Makes a Big Difference

The period for which you keep your money invested is an important factor when selecting an FD. SBI offers different rates for different maturities, so an FD with a few weeks’ duration can have a different rate of interest as compared to a longer-term FD held for months or years.

So investors should determine the duration of the investment depending on the time they anticipate using it. If the money might need to be used in the near future, it may not be suitable to keep it locked in for too long. However, if you opt for a very short term you may not earn as much interest as you would with a longer term deposit.

Cumulative and Non-Cumulative SBI FDs

SBI FD can be configured the way the investor desires the interest to be paid. A cumulative deposit pays interest at the end of the term, for the person who wants to invest without regular interest payments. This can be useful for people saving towards a future financial goal.

A non-cumulative FD, however, is meant for the people who wish to get interest payments at regular intervals. Interest may be due periodically, depending upon the option selected. This could be better for investors seeking steady cash inflows from their investments instead of at maturity.

Is SBI FD an ideal investment option for all investors?

For investors who prefer stability and steady income over more volatile investments, an FD can be beneficial. The interest rate is fixed when the investor books the deposit, so they can make more accurate estimates of their returns, compared to investments with market links.

But investors need to also keep in mind other factors, such as inflation, tax, and their financial objectives. FD Interest income can be taxable within the tax rules. Therefore, it’s important for individuals to view the post-tax return, not the interest rate that is being advertised.

Things to Check Before Opening an SBI FD

Customers should check the current interest being offered for exactly how much they wish to invest and for how long. They also need to consider if they are eligible for any senior-citizen benefit and if they would like to receive cumulative or periodic interest payments.

It’s also crucial to be aware of the bank’s early withdrawal policies and any penalties that may apply. If investors are likely to need the funds before the end of the long term, they should not select a long term just for a specific rate. Comparing the FD terms with personal financial requirements can help in making a more suitable decision.

Those who prefer to invest in a relatively simple manner without directly assuming risk on market linked investments may consider SBI fixed deposit. The interest rate is different for different tenures and eligible senior citizens can avail an extra interest rate as per the relevant rules.

Disclaimer: This article is a general information article only and is not a financial or investment advice. The terms, conditions, interest rates and rules applicable to SBI FDAAA may change. Investors are advised to check the up to date information directly with State Bank of India before taking any investment decision.

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