Amazon Pay has expanded its financial services portfolio with the launch of fixed deposits (FDs) on its platform, allowing users in India to earn interest rates of up to 8% per annum. The move positions Amazon Pay as a deeper financial ecosystem player at a time when fixed-income products continue to attract retail savers seeking predictable and low-risk returns.

The service is being rolled out in partnership with five banks—Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Bank—and two non-banking financial companies (NBFCs), Shriram Finance and Bajaj Finance.

With the launch, customers can open fixed deposits starting from as little as ₹1,000 directly through Amazon Pay, without the need to open a separate savings account with any partner institution. Users can compare interest rates and tenures across partners, choose a preferred option, and complete the entire process digitally within the app. While the booking and management will be done via the Amazon Pay app, the fixed deposits will be held on the books of the respective partner banks or NBFCs.

Interest rates go up to 8% per annum, depending on the institution and tenure selected. All partner banks and NBFCs are offering an additional 0.5 percentage point interest for senior citizens, while Shriram Finance is extending up to 0.5 percentage point extra interest for women investors.

“Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile,” said Vikas Bansal, chief executive officer, Amazon Pay. “With this launch at the start of the new year, we’re expanding customer choice and helping customers achieve better returns on their savings, giving them an optimal foundation for their 2026 financial goals.”

The FD launch builds on Amazon Pay’s evolution from a payments product into a broader financial platform offering UPI payments, credit solutions, bill payments, and travel bookings. As of November 2025, Amazon Pay ranked among the top 10 UPI apps by transaction volume, processing 8.9 crore transactions worth ₹10,147.1 crore, according to data from the National Payments Corporation of India (NPCI).

From a safety perspective, fixed deposits booked with partner banks are insured up to ₹5 lakh per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India. However, deposits placed with NBFC partners are not covered under DICGC insurance, a distinction investors are expected to factor in while choosing between options.

Amazon Pay’s entry also intensifies competition in an already crowded fixed deposit market, particularly among small finance banks that are offering interest rates of up to 8% across one- to five-year tenures. Still, the company is betting that its large user base, seamless digital experience, and ability to aggregate multiple issuers on a single platform will help it stand out in the retail savings space.

With this move, Amazon Pay continues to push beyond payments, aiming to position itself as a one-stop financial companion for Indian consumers.