Amazon Pay rolls out fixed deposits starting Rs 1,000, offers up to 8% interest

Amazon India's payments arm Amazon Pay has rolled out a fixed deposit (FD) offering across India, marking its latest move to deepen its financial services portfolio beyond payments and commerce-linked utilities.

Under the new service, customers can open fixed deposits starting from Rs 1,000 directly through the Amazon Pay interface, without the need to open separate savings accounts with partner institutions.

The fintech arm of the ecommerce major has partnered with two non-banking financial companies, including 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 partner institutions are offering interest rates of up to 8% per annum. All partners provide an additional 0.5% interest for senior citizens, while Shriram Finance also offers up to 0.5% extra interest for women investors.

“Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile,” said Amazon Pay CEO Vikas Bansal.

“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.”

Amazon Pay said customers will be able to compare FD offerings across partner institutions, choose tenures, and complete the investment process digitally within the app. Fixed deposits placed with partner banks are insured up to Rs 5 lakh per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India.

The launch adds to Amazon Pay’s broader push to position itself as a full-stack financial services platform. Over the years, it has expanded from payments into UPI transactions, bill payments, credit products, insurance, travel bookings, mutual fund investments, and digital gold purchases. These services currently operate within Amazon’s ecommerce app, despite reports in August 2024 suggesting the company was considering a standalone payments platform.

Amazon Pay remains among the top 10 UPI apps by usage. As of November, it processed 8.9 crore transactions worth Rs 10,147.1 crore, according to data from the National Payments Corporation of India.

On the financial front, Amazon Pay narrowed its losses by 5% year-on-year to Rs 865.7 crore in FY25, while operating revenue declined 7% to Rs 2,195.1 crore. The company said the expansion into fixed deposits is part of its long-term strategy to diversify revenue streams and strengthen its presence in India’s growing fintech market.