Saving Account Interest Rate: This offer from the bank is very special. The RBI reduced the repo rate by 1% this year. Following this, most banks have reduced interest rates on fixed deposits and savings accounts.
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SBI-HDFC-ICICI Bank Interest Rate: If you have a savings account with a major bank like SBI or HDFC, it will likely offer an interest rate of 2.5 to 3 percent. But isn’t it surprising if a bank offers you 5.5% interest on your savings account? Yes, many public and private banks offer 2.5 to 3% interest. But Slice Small Finance Bank is offering 5.5% interest on all deposits. According to BankBazaar.com, the 5.5% interest rate is the highest among all banks and small finance banks for deposits less than Rs 1 lakh.
RBI reduced the repo rate by 1%
This offer from the bank is very unique. In fact, the RBI reduced the repo rate by 1% this year. Following this, most banks have reduced interest rates on fixed deposits and savings accounts. However, Slice Bank has maintained its 5.5% interest rate. Banks like SBI, HDFC, and ICICI Bank offer only 2.5% interest on savings up to ₹1 lakh. Most banks offer 3% or less.
How does the bank pay such high interest?
Slice Small Finance Bank claims that its interest rate is 100% linked to the RBI’s repo rate. The repo rate is currently 5.5%, which was retained at the same level in the September-October 2025 MPC. Slice Bank’s founder and executive director, Rajan Bajaj, explained that the bank earns money by lending. “Our money is held at a risk-free cost. We earn higher profits by lending,” he said. “We have learned this skill from global banks and are implementing it in India.”
Interest on deposits above ₹1 lakh
Slice Bank doesn’t offer the highest interest rates for deposits above ₹1 lakh. Some other banks offer up to 8% interest on savings accounts above ₹1 lakh. However, for smaller amounts, Slice Bank offers a better offer.
Interest rates on bank and savings accounts
| Slice Small Finance Bank | 5.50% |
| Utkarsh Small Finance Bank Limited | 3.25% |
| Capital Small Finance Bank Limited | 3.25% |
| ESAF Small Finance Bank Limited | 3.00% |
| RBL Bank Limited | 3.00% |
| Ujjivan Small Finance Bank Limited | 2.75% |
| SBM Bank (India) Limited | 2.75% |
| Equitas Small Finance Bank Limited | 2.75% |
| Bandhan Bank Limited | 2.70% |
| Axis Bank Limited | 2.50% |
| Yes Bank Limited | 2.50% |
| Shivalik Small Finance Bank Limited | 2.50% |
| Suryoday Small Finance Bank Limited | 2.50% |
| SBI | 2.50% |
| HDFC Bank | 2.50% |
| ICICI Bank | 2.50% |
