SBI to IDBI: Revised Fixed Deposit interest rates of 4 banks in May 2025

6 min read | Updated on May 20, 2025, 09:44 IST

SUMMARY

When the Reserve Bank of India (RBI) announces a repo rate cut, more money is flushed into the economy and borrowing gets cheaper for both banks and the public. Lower borrowing reduces the need for banks to offer FDs with high interest rates. Many banks have revised their interest rates twice since the announcement of the repo rate cut in April.

SBI has once again revised its interest rates effective from May 16, 2025, cutting them by 20 bps.

After the RBI’s repo rate cut announcement in April 2025, many banks revised their fixed deposit (FD) interest rates, cutting them down to align with the cheaper borrowing rates. Several banks revised their rates in April 2025 and have recently announced new rates starting from the month of May. Let’s have a look at them.

Indian Bank

Indian Bank offers interest rates ranging from 2.80% to 7.15% to general citizens for FD schemes with tenure starting from 7 days. The highest interest rate of 7.15% is for the special tenor scheme (444 days).

Here are the FD interest rates offered currently by Indian Bank:

Period / Tenor of Deposit	Interest Rate (% p.a.)
7 days to 14 days	2.80%
15 days to 29 days	2.80%
30 days to 45 days	3.00%
46 days to 90 days	3.25%
91 days to 120 days	3.50%
121 days to 180 days	3.85%
181 days to less than 9 months	4.50%
9 months to less than 1 year (other than 300 days)	4.75%
1 year	6.10%
444 days	7.15% *
555 days	6.80% *
Above 1 year to less than 2 years (excluding 444 and 555 days)	7.10%
2 years to less than 3 years	6.70%
3 years to less than 5 years	6.25%
5 years	6.25%
Above 5 years	6.10%

* Special FD scheme

Note: These are revised rates for FDs less than ₹3 crore. Additionally, an additional 0.50% is applicable for senior citizens, and an additional 0.75% for super senior citizens (above the age of 80). For senior citizens with FDs with a tenure of 5 years and up to 10 years, an additional 0.25% is offered over and above the normal senior citizen interest rate (so the additional interest offered for this deposit bracket becomes 0.75%).

State Bank of India

In April, the SBI had cut its FD interest rates by 10 bps for deposits with a tenure between one and three years. The bank has once again revised its interest rates effective from May 16, 2025, cutting them by 20. Here are the revised interest rates offered by the SBI:

Current Fixed Deposit Interest Rates (Effective from 16 May 2025)

Tenor	General Public (% p.a.)	Senior Citizen (% p.a.)
7 days to 45 days	3.30%	3.80%
46 days to 179 days	5.30%	5.80%
180 days to 210 days	6.05%	6.55%
211 days to less than 1 year	6.30%	6.80%
1 year to less than 2 years	6.50%	7.00%
2 years to less than 3 years	6.70%	7.20%
3 years to less than 5 years	6.55%	7.05%
5 years to up to 10 years	6.30%	7.30%*

* Includes additional benefit for Senior Citizens

Punjab & Sindh Bank

The PSB offers interest rates ranging from 3.5% to 7.25% to the general public for FDs with a tenure between 7 days and 10 years. The highest rate of 7.25% is for its special scheme of 375 days.

Here are the FD rates for PSB:

Maturity Period	General Public (% p.a.)	Senior Citizen (% p.a.)
7 - 14 Days	3.50	3.50
15 - 30 Days	3.50	3.50
31 - 45 Days	4.00	4.00
46 - 90 Days	4.50	4.50
91 - 120 Days	4.50	4.50
121 - 150 Days	4.50	4.50
151 - 179 Days	6.00	6.00
180 – 364 Days	5.25	5.75
1 Year	6.30	6.80
Above 1 Year – 374 Days	6.00	6.50
375 Days	7.25	7.75
376 Days – 443 Days	6.00	6.50
444 Days	7.10	7.60
445 Days – less than 22 Months	6.00	6.50
Above 22 Months – less than 2 Years	6.00	6.50
2 Years – 776 Days	6.30	6.80
778 Days – 998 Days	6.30	6.80
1000 Days – less than 3 Years	6.30	6.80
3 Years – less than 44 Months	6.00	6.50
Above 44 Months – 5 Years	6.00	6.50
5 Years	6.50	7.00
Above 5 Years – less than 66 Months	6.25	6.75
Above 66 Months – 10 Years	6.25	6.75

These rates are as of April 1, 2025.

Note: The minimum amount for FD deposits with tenor 7 to 14 days is ₹1 lakh.

IDBI Bank

IDBI Bank has revised its FD interest rates, announcing cuts effective from May 16, 2025. It offers interest rates ranging from 3 to 7% to general customers for tenures ranging from 7 days to 20 years. The highest rate of 7% is for deposits with a tenure of above 2 years but less than 3 years.

IDBI Bank regular interest rates:

Maturity Slab	General Customers (% p.a.)	Senior Citizens (% p.a.)
0 – 6 Days	NA	NA
07 – 30 Days	3.00	3.50
31 – 45 Days	3.25	3.75
46 – 60 Days	4.50	5.00
61 – 90 Days	4.75	5.25
91 Days to 6 Months	5.50	6.00
6 Months 1 Day to 270 Days	6.00	6.50
271 Days to less than 1 Year	6.25	6.75
1 Year to 2 Years (excluding 444, 555, 700 Days)	6.80	7.30
Above 2 Years to less than 3 Years	7.00	7.50
3 Years to 5 Years	6.50	7.00
Above 5 Years to 10 Years	6.25	6.75
Above 10 Years to 20 Years	4.80	5.30

Banks and financial institutions usually react to repo rate cuts by reducing their FD interest rates, as a lower repo rate means that the Reserve Bank of India (RBI) lends money to commercial banks at lower interest rates, decreasing the need for the banks to offer high interest rates on FDs. More repo rate cuts are expected in the coming months, as per media reports, which can lead to a further decrease in FD interest rates by banks and financial institutions.