India’s leading fintech platform Zerodha launches fixed deposits on its investment platform Coin, enabling users to invest in bank FDs digitally alongside mutual funds and other financial products.
The move marks a strategic expansion into fixed-income products as the company aims to strengthen its position as a comprehensive wealth management platform.
Key Highlights
- Zerodha launches fixed deposits on Coin app for digital investing.
- Users can compare FD rates and track maturity easily.
- The move aims to boost investor retention and expand savings share.
With the new feature, users can book fixed deposits across multiple partner banks, compare interest rates, and track maturity timelines through a single interface. The fully digital process eliminates the need to open a savings account with the respective banks, making FD investments more accessible and seamless.
The platform also allows investors to monitor accrued interest and manage multiple deposits in one place, addressing the fragmentation typically associated with traditional FD investments.
Zerodha has partnered with small finance banks such as Suryoday Small Finance Bank, Utkarsh Small Finance Bank, and Unity Small Finance Bank, offering competitive interest rates of up to around 8% annually.
The minimum investment starts from Rs 1,000, with flexible tenures ranging from short-term to long-term options, catering to both conservative and retail investors. The launch reflects Zerodha’s strategy to capture a larger share of household savings, particularly from risk-averse investors who prefer fixed-income instruments.
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Zerodha operates as a distributor for bank FDs, earning backend commissions from partner banks while maintaining a zero-fee structure for users.
The FD segment is witnessing increasing competition from fintech platforms and wealth-tech platforms, as companies look to tap into India’s large base of fixed-income investors. By integrating FDs into Coin, Zerodha is positioning itself as a unified investment platform that combines equity, mutual funds, pensions, and now fixed deposits under one roof.
