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

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AuthorKavya Nair|Published at:
Amazon Pay Launches Fixed Deposits, Offers Up to 8% Interest
Overview

Amazon Pay has entered the fixed deposit market in India, partnering with Shriram Finance, Bajaj Finance, and five banks. Customers can open FDs digitally starting from ₹1,000, earning interest rates up to 8% annually. Senior citizens and women investors may receive additional benefits, with deposits insured by DICGC up to ₹5 lakh.

Amazon Pay Enters Fixed Deposit Arena

Amazon Pay has officially launched fixed deposit services in India, significantly expanding its financial services offerings. This new product allows customers to deposit money and earn interest through partnerships with established financial institutions, moving beyond its core payment and credit solutions.

Key Partnerships and Attractive Rates

The service is powered by collaborations with non-banking financial companies (NBFCs) Shriram Finance and Bajaj Finance, alongside five banks: Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Bank. Customers can initiate fixed deposits with a minimum investment of just ₹1,000. The platform aims to provide competitive returns, with interest rates reaching up to 8% per annum. Special benefits are extended to senior citizens, who receive an additional 0.5% interest, and women investors with Shriram Finance can earn an extra 0.5%.

Seamless Digital Account Opening

Opening a fixed deposit is designed to be a straightforward, digital process entirely within the Amazon Pay app. Users can compare offerings from various partner institutions, select their preferred option based on tenure and interest rates, and complete the entire account opening procedure without the need for separate savings accounts or physical branch visits. This digital-first approach aligns with Amazon's strategy to embed financial services into its e-commerce ecosystem.

Regulatory Safeguards and Growth Strategy

All deposits made through Amazon Pay's partners are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor, per bank. Vikas Bansal, CEO of Amazon Pay, stated the launch aims to offer customers enhanced returns on their savings and bolster the platform's position as a comprehensive financial services provider in the Indian market.

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