Fixed deposits (FDs) have long been a preferred choice for Indian savers who seek safe and steady returns from their savings. Now, a new-age twist is making them even more accessible wherein FDs can be booked directly using Unified Payments Interface (UPI) for as low as Rs 1,000 with interest rates reaching up to 9.5 per cent.
super.money, a flipkart-backed fintech company, has launched ‘superFD’ which is a first-of-its-kind product allowing users to book FDs through UPI in just a few taps. This product, designed to simplify savings and make fixed deposits more accessible, offers interest rates of up to 9.5 per cent, with a minimum deposit requirement of just Rs 1,000.
According to recent data from the Ministry of Statistics and Programme Implementation, there has been a significant fall in net financial savings of households by over Rs 9 lakh crore between 2020-21 and 2022-23. The service of FD on UPI addresses the challenges posed by the widening gap between credit and deposit growth in the banking sector by providing a low-risk savings tool.
This product is expected to help individuals offset inflation and achieve steady returns on their investments.
superFD has been launched in partnership with RBI-approved small finance banks and aims to cater to investors looking for low-risk and high-return savings options. It offers a fully digital, paperless process that caters to the preferences of young, tech-savvy investors who prioritise convenience and efficiency.
Which Banks Are Offering FD On UPI?
Investors can book FDs through superFD through the following five RBI-regulated small finance banks:
- North East Small Finance Bank (SFB)
- Utkarsh SFB
- Suryoday SFB
- Shivalik SFB
- South Indian Bank
Moreover, all deposits will be insured up to Rs 5,00,000 by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Interest Rates And Key Terms To Note
The interest rates for these superFD range between 6 per cent and 9.5 per cent, depending on factors like the tenure of the deposit and the investor’s age.
While the maximum interest for a regular investor is up to 9.5 per cent for a tenure of 3 years, the minimum interest rate offered on the platform is 6 per cent for 6-month tenure with Shivalik SFB, Outlook Money finds.
For example:
- A short-term FD could offer a lower interest rate starting at 6 per cent, ideal for those looking for quick liquidity.
- Long-term deposits, particularly for senior citizens, can yield up to 9.5 per cent, making it a lucrative option for those seeking stable growth over time.
How Can You Book an FD on UPI?
The users on super.money application can get started by first downloading a financial app offering FD booking on UPI.
The application is offering this service on select small-financing banks, you can check and review its FD offerings. Choose your choice of Bank FD Offering.
Once on this app, complete the eKYC process.
When KYC is done, set up your deposit using UPI and confirm the transaction.
The ability to book FDs through UPI, currently available and being offered only by super.money, at an attractive rate can help investors use traditional savings tools more conveniently.
