State Bank of India (SBI) has announced a revision in select deposit rates and lending benchmarks, aligning with the recent 25 basis points (bps) cut in the policy rate. The changes will be effective from December 15, 2025, signalling the bank’s strategy to pass on the benefits of the repo rate reduction while maintaining its margin.
SBI has lowered the rate on its 444-day fixed deposit from 6.6% to 6.5%. Deposits ranging from two to less than three years have been reduced to 6.4%, while senior citizens will now earn 6.9% on the same tenure, down from 7.0%. Rates on short-term deposits (seven days to less than one year) and long-term deposits (three years and above) remain unchanged.
The rate adjustment comes amid strong bank credit growth, which has outpaced deposit growth in late November. Lending surged 11.5% year-on-year, marking the highest growth since April 2025, while deposits expanded at a slower pace.
SBI stated that these changes are designed to balance the impact on net interest margins, ensuring stability in returns for depositors while keeping lending competitive. The move reflects the bank’s careful approach to interest rate management in a shifting economic environment.
For depositors planning their investment strategy, the revised rates highlight the importance of monitoring bank announcements closely. Short-term savers may not see immediate changes, but those looking for mid-term fixed deposits could consider acting before further adjustments.
Key Highlights:
- Effective Date: December 15, 2025
- 444-day FD: 6.5% (from 6.6%)
- 2–3 year FD: 6.4%, Senior Citizens: 6.9%
- Short-term & long-term deposits: No change
- Credit growth: 11.5% YoY, outpacing deposits
SBI’s strategic revision showcases the bank’s proactive stance in balancing deposit returns and credit growth. Depositors and borrowers should stay updated to optimize their financial planning in the evolving market.
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Akanksha Sinha
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