Amazon Pay Launches Fixed Deposits, Offers Up To 8% Interest

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AuthorRiya Kapoor|Published at:
Amazon Pay Launches Fixed Deposits, Offers Up To 8% Interest
Overview

Amazon Pay has launched fixed deposit offerings in India, partnering with five banks and two NBFCs. Users can now open FDs digitally with a minimum investment of ₹1,000, earning interest rates up to 8% annually. Additional benefits are available for senior citizens and women investors, enhancing savings options on the platform.

Amazon Pay has officially launched fixed deposit (FD) services for its users in India, expanding its financial services portfolio. This new offering is facilitated through partnerships with five prominent banks: Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Utkarsh Small Finance Bank, and fintech firm Slice, alongside NBFCs Shriram Finance and Bajaj Finance.

Competitive Interest Rates

The fixed deposits will offer annual interest rates reaching up to 8 percent, with variations based on the chosen partner institution and the deposit tenure. Customers can start investing with a minimal amount of ₹1,000. The service sweetens the deal with an additional 0.5 percent interest for senior citizens across all partners, and a further 0.5 percent for women investors from Shriram Finance.

Digital Convenience and Security

A key feature is the entirely digital onboarding process, allowing users to compare FD options, select preferred institutions and tenures, and complete the entire transaction via the Amazon Pay app without needing a separate bank account. All deposits with partner banks are insured up to ₹5 lakh per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation (DICGC), offering a layer of security.

Vikas Bansal, CEO of Amazon Pay, stated, "Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile." He added that the launch aims to "expand customer choice and help customers achieve better returns on their savings, giving them an optimal foundation for their 2026 financial goals."

Market Positioning

This move positions Amazon Pay as a more comprehensive financial platform, building on its existing UPI, credit, and bill payment services. The company noted its significant presence in the digital payments space, ranking among top UPI apps by transaction volume. However, Amazon Pay enters a crowded market where several small finance banks already provide FDs with similar high-interest rates, highlighting the need for competitive pricing and user experience.

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