Digital Savings Gets a Boost as PhonePe Launches FD Booking Facility

Digital Savings Gets a Boost as PhonePe Launches FD Booking Facility

New Delhi, Aug 6: Digital payments platform PhonePe has expanded its financial services portfolio by launching fixed deposit (FD) distribution on its app, allowing users to compare and book deposits from partner banks and non-banking financial companies (NBFCs) through a fully digital process.

The new feature enables customers to explore multiple fixed deposit options, compare interest rates and investment periods, and complete the booking process without paperwork. The move aims to make traditional savings products more accessible and convenient for digital users.

Along with fixed deposits, PhonePe has introduced a Daily Recurring Deposit (RD) facility in partnership with Shivalik Small Finance Bank, allowing users to build savings through daily investments starting from ₹100.

The Daily RD product is designed to encourage small and regular savings by allowing users to automate daily contributions through UPI Autopay. Customers can invest between ₹100 and ₹1,000 per day based on their financial goals.

PhonePe said users will have flexibility with the Daily RD option, including the ability to withdraw funds after seven days and manage their UPI mandate according to their requirements. A grace period for missed investments has also been introduced to provide additional convenience.

Under the FD facility, customers can manage deposits from multiple partner institutions through a single platform. Deposits placed with eligible partner banks will receive insurance coverage of up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) framework, subject to applicable guidelines.

Users can access the FD and Daily RD services through the “Mutual Funds & Deposit” section on the PhonePe application. The process includes selecting a financial institution, choosing the deposit amount and tenure, completing digital verification and making payments through online payment options.

The launch reflects the growing shift towards digital financial services in India, where consumers are increasingly adopting online platforms for savings, investments and personal finance management.

With the introduction of digital fixed deposits and small-ticket savings solutions, PhonePe aims to strengthen its role in expanding access to financial products and encouraging a culture of convenient digital savings.