Amazon Pay has been officially launched in India as of January 6, 2026, and the company hopes that it can take its place with those early movers in the Indian community. The only thing different is that with the new feature Amazon users may direct investment of their savings through the app and thereby receive competitive interest rates up to 8 per cent per annum. Having a low barrier to entry and offering a wholly digital process, Amazon Pay is aimed at both seasoned investors and new savers nationwide.
The Important Features of Amazon Pay Fixed Deposits
The launch represents a strategically significant expansion for Amazon Pay through an ongoing bundle of UPI, insurance and bill payment solutions. Here are the gist of the new offer:
- Minimum Investment: Individuals can set up an FD for ₹1,000 only.
- High Interest Rates: Up to 8% return per annum from partner institutions, far higher than some old-style large-cap banks.
- * Senior Citizens: Gain another 0.5% interest from all partner institutions.
- Women Investors: Shriram Finance provides an additional 0.5% interest for women only.
- No Need for a New Bank Account: Users do not have to open a separate savings account with the partner banks to plan an FD.
Safety and Strategic Partnerships
Amazon Pay is partnering with a mixed group of five banks and two NBFCs with the services offered as follows:
- Banking Partners: Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Utkarsh Small Finance Bank, and Slice.
NBFC Partners: Shriram Finance and Bajaj Finance.
Is Your Money Safe?
As for safety-conscious investors, the partner banks’ deposits get insured up to ₹5 lakh per depositor per bank. This insurance is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) of the Reserve Bank of India (RBI). This insurance only covers bank deposits held with DICGCs, not NBFCs.
Booking FD by Amazon Pay
You book everything in under no time using the Amazon app and it’s all 100% digital!
- Open Amazon Pay: click on the 'Amazon Pay' in the main app of Amazon.
- Choose: Under Investment or Insurance, the new FD icon for 'Fixed Deposit'.
- Compare and Select: Compare the interest rates and terms of offerings of two or more partners (e.g. Shriram Finance and Bajaj Finance).
- Enter: Choose your investment amount (₹1,000 minimum investment rate for this case only) and tenure.
- KYC complete: If not already completed, finish the digital KYC process.
- Payment: Pay the deposit amount using Amazon Pay UPI (UPI directly under this account) or through your linked bank account.
The impact on the market
Fixed-income instruments are still a favourite among Indian households for their “low-risk profile and guaranteed returns,” according to Vikas Bansal, chief executive officer of Amazon Pay India. And then bringing these together in a platform where millions already shop and pay bills, Amazon is then poised to capture a substantial chunk of the retail investment space. This decision takes them directly up against other fintech giants such as Google Pay and PhonePe, which are also adding to their wealth management portfolios.
