Nowadays, everyone wants their money to stay safe and also grow steadily. Understanding this need, Amazon Pay has now stepped into the world of investments. Moving beyond daily payments and bill services, Amazon Pay has launched its Amazon Pay Fixed Deposit service.
This is exciting, but it needs a detailed understanding.
What Is Amazon Pay Fixed Deposit?
Amazon Pay Fixed Deposit is a digital investment facility that allows users to invest in fixed deposits directly within the Amazon app. For this service, Amazon has partnered with five banks and two NBFCs. This means there is no need to stand in long bank queues anymore.
Why Is the Interest Rate Creating Buzz?
The biggest talking point of this new service is its interest rate. Some options offer returns of up to 8%, which is higher than most traditional bank FDs.
Another attractive feature is that women investors get an extra 0.5% interest on fixed deposits offered by Shriram Finance, making the deal even more appealing.
How Easy Is the Investment Process?
Within the Amazon Pay app, users can visit the FD section to explore different options. Interest rates, tenure, and terms are clearly displayed. The entire process is online, and investments can be completed in just a few minutes.
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Safety Matters: This Is Where Awareness Is Crucial
Amazon Pay has clarified that FDs booked with partner banks are covered under DICGC insurance, which protects up to ₹5 lakh per depositor per bank. This insurance operates under the Reserve Bank of India.
However, it is important to note that this insurance does not apply to FDs with NBFCs, which means higher returns also come with higher risk.
Benefits and Concerns Go Hand in Hand
While Amazon Pay Fixed Deposit offers convenience, a smooth digital experience, and attractive returns, investing in NBFC FDs requires extra caution. Every investor has a unique risk tolerance, so decisions should be made carefully.
Conclusion
Amazon Pay Fixed Deposit can be a suitable option for those seeking a tech-driven investment experience and higher returns on fixed deposits. But it is equally important to remember that higher returns are not always completely safe. Investing with proper knowledge and understanding is the real advantage.
Disclaimer:
This article is written for general informational purposes only. Before investing, carefully read the terms, conditions, and risks associated with the respective bank or NBFC. The author or publisher is not responsible for any financial loss.
Kangkan Kishor Sharma, an M.A. in Media and Journalism, serves as the Chief Contributor at NestOfNews.com. He contributes regularly, bringing insight, passion, and a deep commitment to delivering stories that truly matter. His work reflects a thoughtful understanding of media, storytelling, and the issues shaping today’s world.