In a significant move to expand its financial services footprint in India, Amazon Pay has officially launched a new feature allowing users to open Fixed Deposits (FDs) directly through its platform. This initiative aims to simplify the investment process for millions of its customers by offering a digital-first, comparative marketplace for fixed-income products.
Partnerships and Key Features
To power this service, Amazon Pay has forged strategic alliances with seven major financial institutions. The partners include two leading Non-Banking Financial Companies (NBFCs) – Shriram Finance and Bajaj Finance – and five banks: Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Bank.
The platform is designed for utmost convenience. Customers can now open a Fixed Deposit with a minimum amount of just ₹1,000. A major advantage is that users are not required to maintain separate savings accounts with each partner institution to avail of their FD schemes. The entire process, from comparison to completion, is handled digitally through Amazon Pay's interface.
Competitive Interest Rates and Special Benefits
The partner institutions are offering attractive interest rates, with some going as high as 8% per annum. Furthermore, all participating banks and NBFCs provide an additional 0.5% interest for senior citizen investors, enhancing returns for this demographic.
In a push for financial inclusion, Shriram Finance extends an extra benefit of up to 0.5% additional interest specifically for women investors. This feature positions the service as a tailored financial tool for diverse customer segments.
Strategic Vision and Market Impact
Vikas Bansal, CEO of Amazon Pay, highlighted the strategic rationale behind the launch. He stated that fixed-income instruments continue to be immensely popular in India due to their straightforward nature, guaranteed returns, and low-risk profile. "With this launch at the start of the new year, we're expanding customer choice and helping customers achieve better returns on their savings, giving them an optimal foundation for their 2026 financial goals," Bansal explained.
He further emphasized that this step is part of Amazon Pay's broader journey to construct a comprehensive financial solutions ecosystem that caters to the varied needs of Indian consumers. By integrating FD services, Amazon Pay strengthens its position as a one-stop destination for not just payments and shopping, but also for savings and investment products.
The launch is expected to intensify competition in the digital banking and fintech space, pushing other players to innovate and improve accessibility to traditional financial instruments like Fixed Deposits for the tech-savvy Indian investor.
