Most banks offer very low interest rates on small savings deposits — usually around 2.5% to 3% on amounts up to ₹1 lakh.
But Slice Small Finance Bank has taken a bold step by offering a 5.5% interest rate on savings accounts for deposits up to ₹1 lakh.
This move comes at a time when several major banks have reduced their interest rates following the RBI’s 1% repo rate cut earlier this year.
While big names like SBI, HDFC Bank, and ICICI Bank continue to offer only 2.5% on small deposits, Slice Bank has chosen to maintain its higher rate, making it an attractive option for new savers.
Why Slice Bank Can Offer Higher Returns
According to Slice Bank, its interest rate is directly linked to the RBI’s repo rate, which currently stands at 5.5%.
The bank says this allows them to pass the benefit directly to their customers.
Rajan Bajaj, Founder and Executive Director of Slice Bank, explained that the bank’s business model focuses on lending efficiently.
He said,
“Our money is kept at a risk-free cost. We earn higher profits through lending. We learned this strategy from global banks and are now applying it in India.”
This approach helps Slice Bank maintain a high interest rate even when most banks are cutting theirs.
Interest Rates Compared: Slice vs Other Banks
While Slice Bank leads the pack with 5.5% on savings up to ₹1 lakh, some banks offer higher interest rates on deposits above ₹1 lakh.
However, for small depositors, Slice remains one of the best options.
Here’s a comparison of savings account rates offered by major banks:
| Bank Name | Interest Rate on Savings |
|---|---|
| Slice Small Finance Bank | 5.50% |
| Utkarsh Small Finance Bank | 3.25% |
| Capital Small Finance Bank | 3.25% |
| ESAF Small Finance Bank | 3.00% |
| RBL Bank | 3.00% |
| Ujjivan Small Finance Bank | 2.75% |
| SBM Bank (India) | 2.75% |
| Equitas Small Finance Bank | 2.75% |
| Bandhan Bank | 2.70% |
| Axis Bank | 2.50% |
| Yes Bank | 2.50% |
| Shivalik Small Finance Bank | 2.50% |
| Suryoday Small Finance Bank | 2.50% |
| SBI | 2.50% |
| HDFC Bank | 2.50% |
| ICICI Bank | 2.50% |
The Bottom Line
For depositors with smaller balances, Slice Small Finance Bank offers one of the highest savings account interest rates in the market.
With its repo rate-linked structure and focus on smart lending, Slice Bank is positioning itself as a competitive alternative to traditional public and private banks
