When people think about safe investment options in India, Fixed Deposits (FDs) are usually the first choice. Traditional bank FDs generally offer interest rates between 6% and 7%, which many investors consider secure but not very high.
Now, Amazon Pay has introduced a digital FD option that offers interest rates of up to 8%, making it an attractive alternative for investors looking for better returns without taking high risks.
Amazon Pay first launched its FD feature in 2021, but it was later discontinued. The feature has now been reintroduced with a new approach.
This time, Amazon Pay has partnered with small finance banks and selected NBFCs (Non-Banking Financial Companies).
These institutions usually offer higher interest rates than large commercial banks, which helps investors earn better returns on their money.
How Easy Is It to Invest in Amazon Pay FD?
One of the biggest advantages of Amazon Pay FD is its simple and fully digital process. Investors do not need to visit a bank branch or deal with long paperwork.
Here’s how you can invest:
Open the Amazon app on your smartphone
Go to the Amazon Pay section
Select the Fixed Deposit (FD) option
Compare interest rates offered by different banks and NBFCs
Click on Explore, which will redirect you to the partner bank or NBFC’s website
Fill in the required details and complete the FD booking in 2–3 minutes
The entire process is quick, convenient, and can be completed from home.
Interest Rates Offered on Amazon Pay FD
Amazon Pay offers several FD options based on different investment tenures. The interest rates are quite attractive compared to major banks.
Up to 7.25% interest on 1-year FDs
Up to 7.5% return on 2-year FDs
Up to 8% interest on FDs with tenures of up to 5 years
Senior citizens get slightly higher interest rates than regular investors. Overall, these rates are higher than those offered by large banks like State Bank of India (SBI) and HDFC Bank.
How Safe Is Your Money?
Safety is a major concern when investing. Bank FDs up to ₹5 lakh are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
This means that if you invest in an FD with a partner bank, your money is protected up to this limit.
Some NBFC FDs available on the platform also have good credit ratings. However, investors should carefully read the terms and conditions
and check the institution’s rating before investing, as NBFC FDs are not covered under DICGC insurance in the same way as bank FDs.
Who Can Benefit the Most from Amazon Pay FD?
Amazon Pay FD is especially useful for:
People who prefer not visiting bank branches
Investors who want to open an FD quickly and digitally
Those looking for higher returns than a savings account
Users who are comfortable using mobile apps for financial services
Important Things to Keep in Mind Before Investing
While Amazon Pay provides the platform, the actual FD is opened with a partner bank or NBFC. Therefore, investors should:
Clearly understand the interest rate and tenure
Read the premature withdrawal rules carefully
Check the credit rating of the partner bank or NBFC
Go through all terms and conditions before finalizing the investment
Making informed decisions will help you enjoy better returns while keeping your money safe.
