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Under the scheme, customers currently earn 5.25% per annum on their balances, matching the prevailing repo rate in full
Deposits are insured up to Rs 5 lakh, appealing to savers seeking higher returns. (Representative/News18 Hindi)
In a market where most commercial banks offer barely 2.5-3% interest on savings deposits, Slice Small Finance Bank has rolled out a savings account product that pegs returns directly to the Reserve Bank of India’s repo rate. The account also comes with the added comfort of zero minimum balance requirements and no maintenance charges.
Under the scheme, customers currently earn 5.25% per annum on their balances, matching the prevailing repo rate in full. Interest is calculated on a daily basis and credited to the account every day, allowing depositors to benefit from faster compounding. The rate applies uniformly, irrespective of the deposit size. For instance, a balance of Rs 1 lakh earns roughly Rs 14 per day at the present rate, which compounds into a sizeable sum over the course of a year.
The account is being positioned as an attractive option for customers who do not want to worry about maintaining average monthly balances or paying penalty fees, which are still common across legacy banks. Slice Small Finance Bank emerged following the merger of fintech firm Slice with North East Small Finance Bank. The merged entity was formally renamed Slice Small Finance Bank after regulatory approval, with the RBI issuing its notification on May 21, 2025.
Account opening is fully digital through the Slice mobile application, with Aadhaar and PAN-based documentation and video KYC verification enabling onboarding within minutes. Customers can then use the app for UPI transactions, bill payments and fund transfers.
Depositors are also covered under the Deposit Insurance and Credit Guarantee Corporation’s insurance scheme, which protects deposits, including principal and interest, up to Rs 5 lakh per depositor per bank in the event of a bank failure or licence cancellation. The cover applies across all account types, including savings and fixed deposits, with the insurance premium paid by the bank.
Industry observers say the repo-linked savings rate and daily credit feature may appeal particularly to small savers seeking higher returns without locking funds into term deposits, even as the broader market continues to monitor interest rate movements set by the RBI.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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January 06, 2026, 17:14 IST
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