Opening an FD Just Got Even Easier: Invest Directly in Fixed Deposits Using the Coins in Your App—Here’s How!

Zerodha Coin: Zerodha has introduced a Fixed Deposit (FD) facility on its Coin platform. The objective is to make investing low-risk, market-linked, and hassle-free.

Fixed Deposit: To secure your future, it is essential to invest consistently over time. Fixed Deposits (FDs) serve as an excellent option for investment. With this in mind, Zerodha has integrated a new feature into its Zerodha Coin platform.

With this feature, users can now easily invest in FDs without having to visit a bank branch or wait for hours in long queues. The aim is to provide investors with access to secure, market-linked investment options—all within a single platform. Zerodha has launched this service in collaboration with Blostem. Thanks to this partnership, investors can now channel their savings into FDs with just a single click.

Currently, this feature includes three Small Finance Banks—Suryoday Small Finance Bank, Utkarsh Small Finance Bank, and Unity Small Finance Bank—which are offering annual interest rates of up to approximately 8% on FDs. Another key highlight of this feature is that investors can choose FD tenures ranging from as short as 7 days up to 60 months.

Multiple Investment Options in One Place

The Coin App already offers long-term investment options such as Direct Mutual Funds, Insurance, and NPS; now, FDs have also become a part of this ecosystem. This means you can now invest across three distinct asset classes—Equity, Debt, and Fixed Income—all from a single unified platform. This new initiative by Zerodha is effectively transforming the company from a mere ‘discount broker’ into a ‘complete wealth manager.’

Here is the Complete Process:

First, open the Zerodha Coin App, navigate to the ‘More’ tab, and select the ‘Fixed Income/FD’ option. Now, choose one of the three Small Finance Banks (Suryoday Small Finance Bank, Utkarsh Small Finance Bank, and Unity Small Finance Bank) based on your preferred interest rates and tenure.
Next, enter your PAN and Aadhaar numbers to complete the eKYC process. This will be followed by a Video KYC session, during which a bank representative will interact with you via a video call.
Subsequently, you can transfer funds from your linked bank account using either UPI or Net Banking.
Once the FD is booked, you will receive the certificate and a digital receipt directly within the app.

Insurance Coverage on FDs

From a security standpoint, investing in FDs through this app is considered a superior option. This means there is no risk of losing your invested capital. FDs opened through the app are covered by an insurance guarantee of up to ₹5 lakh, provided by the DICGC (a subsidiary of the RBI). Typically, Small Finance Banks offer interest rates that are 1–2 percentage points higher than those offered by major banks like SBI or HDFC. The facility for premature withdrawal (withdrawing funds before maturity) is also available; however, doing so may attract a penalty ranging from 0.5% to 1%.