Amazon Pay Launches Fixed Deposit Service With Returns of Up to 8%

Amazon Pay has expanded its financial services portfolio by launching a fixed deposit (FD) investment facility on its platform, enabling users to invest directly through the Amazon app. With this move, Amazon Pay goes beyond payments, bill settlements, and shopping rewards, offering customers a simple digital route to park their savings in fixed deposits with returns of up to 8% per annum.

The newly launched service allows Amazon Pay users to book fixed deposits in partnership with multiple financial institutions, without the need to open a separate savings account. The entire investment journey — from comparing options to completing the deposit — is carried out digitally within the Amazon Pay section of the app, making it accessible even for first-time investors.

Partner Banks and Financial Institutions

Amazon Pay’s fixed deposit offering is powered by tie-ups with a mix of banks and non-banking finance companies (NBFCs). Partner institutions include Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Utkarsh Small Finance Bank, Shriram Finance, Bajaj Finance, and Slice. Users can view and compare FD options offered by these partners based on tenure and interest rates before making a decision.

A key feature of the platform is convenience. Customers are not required to open or maintain a savings account with any of the partner institutions, which significantly reduces friction and paperwork. This makes the service particularly attractive for users looking for quick and straightforward fixed-income investments.

Interest Rates and Investor Benefits

Fixed deposits booked via Amazon Pay currently offer interest rates of up to 8% annually, depending on the partner institution and tenure selected. The minimum investment amount starts at Rs 1,000, allowing small investors to participate without committing large sums.

Certain partner institutions also provide additional benefits. For instance, women investors can earn up to 0.5% extra interest on fixed deposits offered by Shriram Finance, enhancing returns for specific investor categories.

Before confirming an investment, users can review detailed information including interest rates, maturity value, tenure, and terms and conditions, ensuring transparency in the decision-making process.

Safety and Deposit Insurance

Amazon Pay has clarified that fixed deposits booked with partner banks are covered under deposit insurance provided by the Deposit Insurance and Credit Guarantee Corporation. Under this framework, bank deposits are insured up to Rs 5 lakh per depositor per bank. The DICGC functions under the Reserve Bank of India, offering an additional layer of protection to depositors.

However, this insurance coverage applies only to bank fixed deposits and does not extend to deposits placed with NBFCs. Investors are advised to factor this distinction into their investment choices.

How to Open a Fixed Deposit on Amazon Pay

To invest, users need to open the Amazon app, navigate to the Amazon Pay section, and select the Fixed Deposit option. After accepting the terms, they can choose a partner institution, select a tenure, and enter the deposit amount. The account opening and FD booking process is completed fully online by submitting the required details through the app.

With this launch, Amazon Pay strengthens its position in India’s growing digital financial ecosystem, offering users a low-effort, competitive fixed-income investment option alongside everyday payment services.