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The Reserve Bank of India (RBI )’s decision to cut a 50 -basis point in the recent repo rate has created a stir in the country’s banking sector. This change is also affecting the common man’s pocket, as the major banks are cutting the interest rates of their fixed deposit schemes.

In this episode, the country’s largest government bank, State Bank of India (SBI), has also announced a decrease in interest rates on its popular plan Amrit Vrishti FD. This change has come into force from 15 June 2025. Come, let’s understand this news in detail and know how much returns you will get in this scheme and what are your other options.

New interest rates in SBI Amrit Vrishti FD

State Bank of India has cut interest rates by 25 basis points in interest rates on fixed deposits of 444 days under its Amrit Vrishti FD scheme. Earlier, where ordinary citizens used to get 6.85% annual interest in this scheme, now it has come down to 6.6%.

At the same time, interest rate for senior citizens (Senior Citizens) has been fixed at 7.10% and 7.20% for super senior citizens (80 years or older). This change can be disappointing for investors who were expecting safe and stable returns through this scheme.

Effect of interest cuts cut

After the RBI cut the repo rate for the third time this year, other major banks like ICICI Bank, HDFC Bank and Canara Bank have also reduced their FD interest rates. This deduction can be relieved for banks, but it is a major setback for common investors, especially the middle class and retired people.

Fixed deposit schemes have been a reliable way for a long time, but due to the decrease in interest rates, now investors will not get as much returns as before.

Premature withdrawal fined

If you withdraw your deposits before the fixed period in Amrit Vrishti FD, then you have to pay a fine. According to the rules of State Bank of India, FD up to Rs 5 lakh will be fined 0.50% for premature withdrawal, while a fine of 1% will be applied to deposits ranging from Rs 5 lakh to Rs 3 crore. In such a situation, investors have to take care of this while making their financial plan.

What are other options?

If you are troubled by the declining interest rates of SBI Amrit Vrishti FD, then post office savings plans may be a better option for you. Post office fixed deposits and other investment plans give more returns many times than banks. In addition, these schemes are completely safe and supported by the government, which keeps the trust of investors. You can consider these plans based on your needs and ability to take risk.