This Small Finance Bank gives 5.50% RoI on savings a/c:Interest available on up to ₹1 lakh balance; find out what other banks give

A Small Finance Bank (SFB) is giving an interest rate of 5.50% on savings accounts. This is higher than what citizens usually get on balances of up to ₹1 lakh with any other lender be it any SFB or private or public bank in the country. According to ‘The Economic Times’, citizens can earn 5.50% Rate of Interest (RoI) on savings accounts with the Assam-based Slice SFB, erstwhile, the North East SFB. The striking thing is that even on balances lower than ₹1 lakh, citizens would still get the same RoI of 5.50% with the lender. This is way higher than what government-owned public banks or privants currently give on savings account. The likes of HDFC Bank, ICICI Bank, Axis Bank, SBI, PNB, etc all give comparatively lower interest. Savings A/C RoI With SFBs Lets see how much RoI citizens can get on savings accounts with other SFBs: All these lenders, follow the system of incremental interest rates (slab-wise) on balances in savings accounts. Citizens get higher RoI on higher balance. If they keep up to ₹1 lakh balance, then, they would get interest up to a certain limit. If they keep higher than ₹1 lakh balance, then, they would get higher interest. Are SFBs safe? Yes, money kept in the SFBs are absolutely safe, but, up to a certain limit. The government of India’s (GoI’s) organistion, the Deposit Insurance and Credit Guarantee Corporation (DICGC) would credit back up to ₹5 lakh (subsuming capital and interest) to each customer if the bank collapses. Which types of banks are covered by DICGC? How much Savings A/C RoI with Public Banks? SBI – 2.50% PNB – 2.50% BOB – 2.50% How much Savings A/C RoI with Private Banks? HDFC Bank – 2.50% ICICI Bank – 2.50% Axis Bank – 2.50%