Amazon Pay has introduced fixed deposit accounts in India, offering up to 8 percent annual returns. Partnering with five banks and two NBFCs, the service aims to provide accessible investment options starting at Rs.1,000. Deposits are insured up to Rs. 5 lakh under DICGC.

Amazon Pay has introduced the ability to create fixed deposit (FDs) accounts in India. The payment services platform says that consumers in India can now earn up to 8 percent returns on their savings through their platform. Amazon Pay is expanding beyond its core services, such as UPI payments, credit solutions, bill payments, and travel reservations, with this launch.

Amazon partnerships for new fixed deposit feature

Amazon has partnered with five banks - Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Ban. It has also partnered with two non-banking financial companies (NBFCs), Shriram Finance and Bajaj Finance, to enable the fixed deposits.

Amazon Pay fixed deposit: Interest rates and key features

On their fixed deposits, clients can earn interest rates of up to 8 percent annually. Women investors can receive an additional 0.5 percent interest from Shriram Finance, while senior citizens can receive an additional 0.5 percent. The FDs are positioned as an accessible, low-risk investment option because they start at just Rs. 1,000. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, deposits are insured up to Rs. 5 lakh per depositor per bank.

Steps to open an Amazon Pay fixed deposit account

Opening a fixed deposit account via Amazon Pay is a straightforward digital process. Here are the key steps:

1. Download or open the Amazon Pay app on your smartphone.

2. Navigate to the Fixed Deposits section within the app.

3. Compare the offerings from the partner banks and NBFCs, including interest rates and tenures.

4. Select your preferred institution and deposit tenure.

5. Complete the account opening digitally by providing necessary details and verification, all through the app.

No physical visits or paperwork are required, ensuring a hassle-free experience.

Vikas Bansal, CEO of Amazon Pay, emphasised that the initiative aims to provide better returns on savings and strengthen the platform's role as a comprehensive financial services provider in India.