Amazon Pay launches fixed deposits with up to 8% interest
What's the story
Amazon Pay has launched a new service in India, offering Fixed Deposits (FDs) through its platform. The move is part of the company's expansion into financial services, which already includes UPI payments, credit solutions, bill payments, and travel bookings. The FDs are offered in partnership with two non-banking financial companies (NBFCs)—Shriram Finance and Bajaj Finance—and five banks: Slice, Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, and Utkarsh Small Finance Bank.
Service details
Amazon Pay's new FD service offers competitive interest rates
The new FD service from Amazon Pay allows customers to start a fixed deposit with as little as ₹1,000. The company is offering interest rates of up to 8% per annum on these deposits. Senior citizens can avail an additional 0.5% on their deposits while women investors can get up to 0.5% more from Shriram Finance.
Insurance coverage
Amazon Pay's FD deposits are insured up to ₹5 lakh
All deposits made through Amazon Pay's new FD service are insured up to ₹5 lakh per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that in case of a bank failure, customers' money is safe up to this limit. To open an FD account, customers need to go directly through the Amazon Pay app, compare offerings, select their preferred institution and deposit tenure, and complete the account opening process digitally.
Investment opportunity
Amazon Pay's FD service is a low-risk investment option
The launch of the FD service comes as Amazon Pay continues to expand its financial services portfolio. The company sees fixed deposits as a low-risk, fixed-income investment opportunity for customers looking to grow their savings. Vikas Bansal, CEO of Amazon Pay, said that this move is aimed at giving customers better returns on their savings while strengthening the platform's position as a financial services provider in India.