Amazon Pay launches fixed deposits offering up to 8% annual returns

Amazon Pay broadens its savings products with easy, app-based fixed deposit options

Amazon Pay has expanded its financial services portfolio by launching fixed deposits (FDs) on its platform, allowing customers to earn interest rates of up to 8 per cent per annum. The new offering is aimed at retail savers looking for simple, low-risk investment options, especially at a time when fixed-income products continue to remain popular among Indian households.

 

How does the Amazon Pay fixed deposit work?

According to Amazon Pay, customers can open fixed deposits starting from Rs 1,000. The facility is available through partnerships with two non-banking financial companies (NBFCs), Shriram Finance and Bajaj Finance, and five small finance banks:

 

 

• Shivalik Small Finance Bank
• Suryoday Small Finance Bank
• South Indian Bank
• Slice
• Utkarsh Small Finance Bank

One key feature is that customers do not need to open a separate savings account with any of these partner institutions. The entire process, from selection to investment, can be completed digitally through the Amazon Pay app.

 

Interest rates and benefits for specific investors

The partner institutions are offering interest rates of up to 8 per cent per annum, depending on the tenure and institution chosen. Senior citizens are eligible for an additional interest of up to 0.5 percentage points across all partner banks and NBFCs. Shriram Finance is also offering up to 0.5 percentage points extra interest for women investors.

 

These features make the product particularly attractive for retirees and conservative investors who prioritise stable and predictable returns.

 

Safety and regulatory cover

Fixed deposits booked with partner banks come with deposit insurance of up to Rs 500,000 per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India. This provides an added layer of safety for investors, alongside the assurance of fixed returns.

 

However, deposits with NBFCs are not covered under DICGC insurance, and investors are expected to factor this into their decision while comparing options on the platform.

   

Why Amazon Pay is pushing fixed deposits

 

“Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile,” said Vikas Bansal, chief executive officer, Amazon Pay. He added that the launch at the start of the New Year is aimed at helping customers earn better returns on their savings while supporting their financial goals for 2026.