When people think of safe investments in India, fixed deposits (FDs) are usually the first choice. Traditional bank FDs generally offer interest rates between 6% and 7%.
Now, Amazon Pay has introduced a new digital FD option that offers interest rates of up to 8%.
Amazon Pay first launched its FD feature in 2021, but it was later withdrawn. The feature has now been reintroduced in partnership with small finance banks and selected NBFCs.
These institutions usually offer higher interest rates than large banks, which helps investors earn better returns.
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How Easy Is It to Invest in Amazon Pay FD?
One of the biggest advantages of Amazon Pay FD is its simple and completely digital process. There is no need to visit a bank branch or deal with lengthy paperwork.
Here’s how you can invest:
Open the Amazon app
Go to the Amazon Pay section
Select the Fixed Deposit option
Compare interest rates offered by different banks
Click on Explore
After this, you are redirected to the website of the partner bank or NBFC. You can complete the FD booking in 2–3 minutes by filling in a few basic details.
Interest Rates Offered on Amazon Pay FD
Amazon Pay provides multiple FD options for different tenures with attractive interest rates:
Up to 7.25% on a 1-year FD
Up to 7.5% on a 2-year FD
Up to 8% interest on FDs with tenures of up to 5 years
Senior citizens get slightly higher interest rates compared to regular investors. These rates are higher than what major banks like SBI and HDFC Bank usually offer.
How Safe Is Your Money?
FDs with partner banks are protected under DICGC insurance up to ₹5 lakh. This means your investment is considered safe within this limit.
Some NBFC FDs available on Amazon Pay also have good credit ratings, but investors should carefully read the terms and conditions before investing.
Who Can Benefit from Amazon Pay FD?
This option is useful for:
People who prefer not visiting bank branches
Investors who want to open an FD quickly
Those looking for better returns than a savings account
Important Things to Keep in Mind Before Investing
Amazon Pay only acts as a platform. The actual FD is created with a partner bank or NBFC, so it is important to:
Understand the interest rate and tenure
Read the premature withdrawal rules
Check the credit rating of the partner institution carefully