The State Bank of India (SBI), the country's largest public sector lender, has revised its fixed deposit (FD) interest rates for select tenors effective May 20, 2026. Notably, the bank has introduced a special 555-day FD tenor offering an attractive interest rate of 7.25% per annum for the general public. For senior citizens, the rate stands at 7.75% per annum, making it one of the most competitive options in the market.
Revised FD Rates for 555-Day Tenor
According to the latest SBI FD interest rate update, the 555-day FD now carries a rate of 7.25% for deposits below Rs 2 crore. This is a significant move by SBI to attract long-term deposits. The bank has kept the rates unchanged for other tenors. The revised rates are applicable from May 20, 2026, and will remain in effect until further notice.
Key Highlights of SBI FD Rates
- Tenor: 555 days (approximately 18 months)
- Interest Rate (General): 7.25% per annum
- Interest Rate (Senior Citizens): 7.75% per annum (additional 0.50% over general rate)
- Deposit Limit: For amounts below Rs 2 crore
Comparison with Other Tenors
For the general public, SBI offers FD rates ranging from 3.50% to 7.25% for tenors between 7 days and 10 years. The highest rate of 7.25% is now available for the 555-day tenor, matching the rate for 444-day deposits. Senior citizens continue to enjoy an extra 0.50% on all tenors, making the 555-day FD yield 7.75%.
How to Open an SBI FD
Customers can book an SBI FD through multiple channels:
- Online: Via SBI YONO app or internet banking (SBI Online)
- Offline: By visiting any SBI branch with KYC documents
- Through Agent: Using authorized SBI agents
To open an FD online, log in to YONO or SBI Online, select the 'Fixed Deposit' option, choose the 555-day tenor, and enter the deposit amount. The FD will be created instantly.
Tax Implications
Interest earned on SBI FDs is taxable as per the income tax slab of the depositor. TDS (Tax Deducted at Source) is applicable if the total interest exceeds Rs 40,000 (Rs 50,000 for senior citizens) in a financial year. Customers can submit Form 15G/15H to avoid TDS if their total income is below the taxable limit.
Why Choose SBI FD?
SBI FDs are considered safe as they are backed by the Government of India. The bank offers flexible tenors, competitive rates, and the convenience of nationwide branches. The special 555-day FD is ideal for investors looking for a medium-term investment with assured returns.
For the latest updates on SBI FD interest rates and other financial products, stay tuned to Bharat Horizon.
