You can now invest in fixed deposits using PhonePe
What's the story
Leading digital payments platform PhonePe has launched a new feature on its app - the ability to book fixed deposits (FDs) with partner banks and non-banking financial companies (NBFCs). The move is aimed at making investing in FDs more accessible by digitizing the process. The company has also introduced a Daily Recurring Deposit product in partnership with Shivalik Small Finance Bank.
Feature details
Compare and book deposits digitally
The new FD feature from PhonePe lets you compare and book deposits digitally.
You can choose from a range of deposit options, compare interest rates and tenures, and open FDs with just a few clicks.
The company says that deposits booked with partner banks will be insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) framework, subject to applicable rules.
User convenience
Manage FDs across multiple partner banks
The new feature also lets you manage FDs across multiple partner banks from a single interface. Deep Agrawal, Vice President and Head of Payments at PhonePe, said this launch is about making fixed deposits more accessible by moving the process online and enabling digital investments.
Savings automation
A look at Daily RD feature
Along with the FD feature, PhonePe has also launched a Daily RD feature in partnership with Shivalik Small Finance Bank.
This lets you automate your savings by investing between ₹100 and ₹1,000 per day via UPI autopay.
You can withdraw funds after seven days or pause anytime without any penalties within a 15-day grace period for missed investments.
Booking process
Booking FDs or RDs on PhonePe app
To book FDs or Daily RDs on PhonePe, head over to the "Mutual Funds & Deposit" section of the app.
You can select a partner bank or NBFC, choose the tenure and investment amount, and complete digital verification through PAN and Aadhaar.
Payments can be made via UPI or net banking.
Digital platforms have increasingly expanded their role in distributing financial products, including deposits, insurance and mutual funds.