State Bank of India (SBI), the country’s largest public sector bank, continues to remain a popular choice for safe and assured investments. In 2025, SBI has revised its Fixed Deposit (FD) interest rates, bringing good news for senior citizens. Depositors in the ₹3 lakh to ₹9 lakh range can now earn up to 7.75% annually, making it one of the most attractive FD schemes in the banking sector.
What’s New in 2025 FD Rates?
For regular customers, SBI offers FD rates up to 7.25%. However, senior citizens get an additional benefit of 0.50%, which pushes the effective return to 7.75%. This enhancement applies to specific tenures where the bank is offering special schemes, giving retirees a dependable monthly or annual income option.
Deposit Range and Tenure Options
Senior citizens depositing amounts between ₹3 lakh and ₹9 lakh can enjoy higher returns on fixed tenures, especially those between 1 year and 5 years. The FD can be structured for cumulative returns (interest paid at maturity) or as a monthly income scheme where interest is credited regularly to the depositor’s account.
SBI FD Rate Chart 2025 for Senior Citizens
Here’s an overview of SBI’s latest FD rates for seniors:
| Deposit Amount | Tenure | Regular FD Rate | Senior Citizen FD Rate |
|---|---|---|---|
| ₹3 lakh – ₹9 lakh | 1 year – 2 years | 6.75% | 7.25% |
| ₹3 lakh – ₹9 lakh | 2 years – 3 years | 7.00% | 7.50% |
| ₹3 lakh – ₹9 lakh | 3 years – 5 years | 7.25% | 7.75% |
| ₹3 lakh – ₹9 lakh | Above 5 years | 6.50% | 7.00% |
(Note: Rates are indicative and subject to revision by SBI. Senior citizen rates include the extra 0.50% benefit.)
Why This Matters for Retirees
Senior citizens often rely on fixed income sources to manage household expenses and medical needs. A 7.75% FD rate on mid-range deposits means they can generate higher monthly or quarterly payouts without worrying about market risks. For example, a ₹5 lakh FD at 7.75% for 5 years can yield an annual interest income of around ₹38,750.
Taxation Angle
While the FD offers assured returns, interest earned is taxable under the Income Tax Act. However, senior citizens can claim deductions under Section 80TTB up to ₹50,000 on interest income, reducing the overall tax burden. This makes SBI’s FD scheme even more appealing for retirees.
Conclusion
SBI’s 2025 FD rates have created a win-win situation for senior citizens. With deposits between ₹3 lakh and ₹9 lakh, retirees can earn up to 7.75% interest, ensuring stability, security, and better financial planning. For those who prefer guaranteed income without taking risks, SBI’s FD continues to be one of the most dependable investment avenues in India.