Fixed Deposits (FDs) are considered one of the safest investment options. Consequently, a large number of people still prefer investing in FDs. However, continuous cuts in interest rates often make investors question the profitability of such investments.

Amidst this, the State Bank of India (SBI) has taken a significant decision regarding customers opening high-value FDs. If you are planning to invest in an FD, this news is relevant to you. SBI has reportedly reduced interest rates on bulk FDs of ₹3 crore or more. Additionally, new RBI regulations concerning FDs are set to come into effect on October 1, 2026; these are likely to impact large investors and new FD accounts in particular.

**Which FDs are affected by SBI's rate cut?**
Under the new rates effective from August 15, 2026, SBI has lowered interest rates on FDs of ₹3 crore and above. A reduction of 0.25% (25 basis points) has been implemented for bulk FDs with tenures ranging from 7 to 179 days, and a cut of 0.10% applies to deposits with tenures between 180 and 210 days. However, interest rates for FDs with tenures ranging from 211 days to 10 years remain unchanged.

**Impact on renewals as well as new FDs**
The bank's decision is not limited to new FDs alone. Customers whose high-value FDs are maturing and who wish to renew them will also be subject to the new interest rates. Therefore, investors are advised to check the interest rates before opting for renewal.

**What changes from October 1?**
The RBI has decided to implement new regulations regarding FDs. Under these rules, banks will no longer be permitted to offer different interest rates at different branches for FDs of the same amount and with identical terms. Additionally, banks will be required to publicly display their FD rates on their websites in advance, making it easier for customers to compare them.

No need for general customers to panic
The good news is that SBI has not made any changes to standard retail FDs of less than ₹3 crore for the time being. The new RBI regulations are primarily aimed at enhancing transparency and clarifying provisions related to bulk deposits. Therefore, there will be no immediate impact on the existing FDs of small investors.

Penalty for premature FD withdrawal
SBI has clarified that a 1% penalty will apply to the premature closure of bulk FDs. This rule will apply to both new deposits and renewed FDs.

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