Fixed Deposits are now live on Coin

Zerodha Feature Announcements
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Despite the surge in equity investing since 2020, most Indian households still keep a large part of their savings in fixed deposits. And that’s understandable. FDs offer guaranteed returns, no market risk, and predictable outcomes. For emergency funds, near-term goals, or simply a break from market volatility, they quietly do the job of keeping money safe.

The problem isn’t the product. FDs are simple, but the ecosystem around them is messy. Rates are scattered across bank websites, processes differ from bank to bank, and once you have multiple FDs, tracking maturity dates, renewals, and interest becomes unnecessarily hard.

That’s what we’re trying to solve by bringing FD investment on Coin.

We’re starting with two small finance banks:

  • Suryoday Small Finance Bank (rates up to 8.0%)
  • Utkarsh Small Finance Bank (rates up to 8.0%)

Both banks are CRISIL/ICRA-rated, offer tenures ranging from 7 days to 60 months, and deposits up to ₹5 lakh are insured by DICGC. Premature withdrawals are allowed after 7 days.

Visit fd.zerodha.com or click “Fixed Deposit” from the Coin dashboard. You’re already logged in through Kite; no separate sign-up is required. Browse available banks and compare rates across tenures. Use the FD calculator to see exactly what you’ll earn.

Select the bank, tenure, and amount (minimum ₹1,000). Choose the payout mode and what you want to do at maturity:

Refund (principal + interest is credited to bank account) or reinvest (principal + interest is reinvested).

Complete KYC: PAN verification, Aadhaar authentication via OTP, address confirmation, personal details, nominee addition, and bank account linking. You can link your bank account via UPI (scan a QR, pay ₹1 which is refunded) or enter the details manually.

Make the payment via UPI or net banking, then complete video KYC within three days. Once that’s done, your FD is confirmed.

Your FD will appear in the Holdings tab with maturity dates and interest details. Orders and payment history are tracked as well.

One important thing about KYC:

KYC is required for each bank separately. This is a regulatory requirement. Once you complete KYC with a bank, repeat investments with the same bank are much faster; just the amount, tenure, payment, and video KYC are needed. Make sure you have your PAN handy. If video KYC isn’t completed within three days of payment, the amount is refunded automatically.

Additional Investment

Once the invetsment and KYC is done, in the future the investments are seamless m.

Additional Investment clip

Why banks, not NBFCs

We’re offering only bank FDs. Banks provide deposit insurance up to ₹5 lakh; NBFCs don’t. For most people, safety matters more than marginally higher rates.

We’re working on:

  • FD holdings on your main Coin dashboard alongside mutual funds and stocks
  • Maturity alerts and auto-renewal options
  • Better analytics and reports
  • More bank partnerships

A note on how this works

The FD page at fd.zerodha.com is powered by Blostem. We’ve integrated it via Kite Connect, so you’re authenticated through your Zerodha account, and no client information is stored on Blostem’s end.

Any of your bank account can be used for payment, but maturity proceeds are credited to the account you register with Blostem (linked to your PAN). This is a banking requirement.

If you have any feedback, please share it in comments.

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Any possiblity of pledging it for margin in near future ?

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@Neelesh
Is premature withdrawal instant? How long does it take to get the money in your bank account after placing the request.

Is the withdrawal available 24x7?

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Hmm only 2 banks available

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Since you now have access to fds via Coin, how about allowing pledging for fds done via Coin?

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My suggestion, please do put up a FAQ on this. It will help.

Few Points which need clarification.

  1. Is it only for residents or even for NRI.
  2. Is it only FDs that is available or is RD also can be booked.
  3. Can a customer approach the bank irrespective from where the FD was sourced i.e coin.
  4. Are there any charges to book the FD. If the FD to be closed, will there by another charge. If there are charges why should anyone book the FD when you have standalone FD mechanism offered by these bank.
  5. Why only these two small finance bank. As per screener, Suryoday ranks 38 and utkarsh ranks 36th out of 41 banks (based on market cap). I am aware upto 5 lack is insured. Is this the only reason to include these two SFB.
  6. This service on paper sounds great and convenient. How come major private banks not incuded. Is there any catch. Is the target market only for those customers who will place upto 5 l which is insured.
  7. Can a customer contact the branch of these two banks for any service - what are the terms and condition.
  8. On each and every renewal, will it be auto renewed or will you take a charge. If customer wants quarterly interest will this be possible.
  9. What happens if Coin goes bankrupt. Is the FD which resides in the bank accessible to customers or will customers will be asked to wait until all the legal issues are sorted out.
  10. There are benefits in booking FD via this method, but what are the demerits which the customer SHOULD know. This is critical. There should be transparancy as to the dos and donts or what can be done or not done. Example: AT1 Bonds, even seasoned investors did not know that in case of closure of the bank, these bonds will be written off in full - Equity shareholders were spared but these bond holders got wiped off (Yes Bank) Not an exact example, I am sure the experts in Zerodha who has come out with this service will be aware and this should be put out.

Remember this is FD which people expect to be safe and secure at least upto 5 lack. Hence the responsibility is on sourcer of funds i.e coin to explain every thing when going through this route as I understand you are the second service provider. Not sure if Icici Direct provides this service.

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SEBI guidelines discontinued FDs as a standard margin product for brokers around December 2023.

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Premature withdrawal is not instant, but it’s fairly quick. Once you place a premature withdrawal request from the FD details page in the Holdings section, the withdrawal amount is typically credited to your registered bank account within 6-8 hours after the request is processed by the bank.

The timeline may vary slightly depending on:

  • Bank processing times
  • Time of withdrawal request (banking hours vs non-banking hours)
  • Whether it’s a working day or a holiday

You can place a withdrawal request 24x7. However, the actual processing and crediting of funds to your account happens during banking hours and may take 6-8 hours.

If you place a withdrawal request on a weekend or bank holiday, processing will begin on the next working day, and funds will be credited within 6-8 hours of the bank processing your request. Premature withdrawal is only allowed after 7 days from the FD booking date. No withdrawals are permitted during the first 7 days (lock-in period).

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Currently, FDs on Coin are available only for Indian residents. NRIs cannot invest at the moment. This is because the digital KYC process (including Aadhaar-based authentication and video KYC) is designed for resident Indians with Aadhaar-linked mobile numbers.

Right now, only Fixed Deposits are available. Recurring Deposits are not offered yet.

Yes, once your FD is booked, it’s a direct relationship between you and the bank (Suryoday or Utkarsh). Your FD is held with the bank, not with Zerodha or Blostem.

You can:

  • Contact the bank directly for any queries or service requests
  • Visit the bank’s nearest branch if needed
  • Access all standard banking services related to your FD

We’re simply the platform that facilitates the booking process. The FD itself is entirely with the bank.

No charges from our end for opening an FD, maintaining an FD, or closing/withdrawing an FD through the platform.

The only charge you’ll encounter is the premature withdrawal penalty (a 1% reduction in the applicable interest rate), which is levied by the bank, not by us. This penalty applies whether you book the FD through Coin or directly with the bank; it’s a standard bank policy. Also, with FD on Coin/ Console you will have an ease for consolidated tracking view your FDs alongside mutual funds and stocks (coming soon on the dashboard)

Small finance banks typically offer higher interest rates than larger banks because they’re actively building their deposit base to fund lending operations. Meanwhile, we have started with 2. We have a few more in the pipeline and will go live in the coming days, like Unity, IndusInd, etc. Blostem is working on partnerships with more large banks, and we’ll add them as they become available.

Small finance banks carry a higher perceived risk than large private or public sector banks

  1. DICGC insurance covers deposits up to ₹5 lakh per depositor per bank. This is the primary safety net.
  2. Small finance banks are regulated by RBI, just like any other bank. They have to maintain the same capital adequacy, liquidity, and compliance standards.
  3. India has not seen depositors lose money in a universal bank or even a small finance bank. The RBI typically intervenes (mergers, recapitalization) before failure. That said, this is not a guarantee, and some cooperative banks have faced issues.
  4. We chose banks over NBFCs for this exact reason; deposit insurance. NBFCs offer no such protection.

Building integrations with banks takes time. Each bank has its own systems, compliance requirements, and timelines. Blostem started with small finance banks because:
We’re actively working to add larger banks. It’s just a matter of getting the partnerships and integrations live.

No catch. This is a straightforward service. There are zero charges. We’re offering it because:

  • FDs are a fundamental part of most people’s portfolios
  • We want Coin to be a one-stop platform for all your passive investments

Answered above.

You can select the option reinvest and ht emaoutn will be reinvested on maturity.

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Whether manual or automatic, there are no charges from our side.

Coin goes bankrupt, thats equal to how safe is zerodha :slight_smile: you can read this post to understand.

Now, regarding your FDs, they are held directly with the bank, not with Zerodha.

  1. Your FD is held directly with the bank (Suryoday or Utkarsh), not with Zerodha or Blostem. We’re just the platform that facilitated the booking.
  2. Zerodha and Blostem do not hold your money. Your funds go directly to the bank. The bank creates your FD account. Your money sits with the bank.
  3. If Zerodha or Blostem were to shut down: Your FD would remain entirely unaffected. As informed above you can reach out to the bank any time.

The relationship is between you and the bank. Zerodha is just the facilitator.

FDs with small finance banks are safe up to ₹5 lakh per bank (DICGC insurance). Beyond that, there is a small risk. India hasn’t seen depositors lose money in universal banks or small finance banks. RBI typically steps in before things go south. But that’s not a guarantee, just a historical fact.

If you’re uncomfortable with small finance banks, wait for us to add larger banks. Or book directly with a bank you trust. We’re not here to push anything. We’re offering a convenient way to book FDs digitally and track them alongside your other investments.

We don’t hold your money. We don’t guarantee returns. We’re a facilitator. Your FD sits with the bank. If, in the worst case/ assumption, Zerodha shuts down tomorrow, your FD stays put, you just contact the bank directly. FDs are simple, senior-most bank liabilities with explicit insurance up to ₹5 lakh. AT1 bonds were complex instruments with write-down clauses buried in fine print. Not the same animal. :slight_smile:

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Great. But I don’t see the way to invest in FDs through the Coin Android mobile app. Need I go through Coin website for booking fd? If yes then when is it coming on the mobile app because that’s the bare minimum one would expect in the modern world

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Any specific reason no option is provided for monthly / quarterly interest payout? Can we expect to get these options to interest payout back to bank account instead of waiting until maturity? Have seen similar options provided similar options else where.

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Can Form 15G/15H be submitted online via Coin app or is branch visit required?

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super! would help make it easier to invest & manage investments in one place… for those who want to invest in standalone FDs (Rs5L DICGC limit) across multiple banks and use laddering as a strategy.

i have especially found it v v tough to open stand-alone fd investments in certain banks like: Shivalik SFB, Slice sfb, Capital SFB & north east sfb…

only worried about the data privacy/ safety aspect but you have specifically mentioned " no client information is stored on Blostem’s end"

you really should provide monthly/ quarterly interest credit option…

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We will be launching on mobile soon as well :slight_smile:

Currently, only cumulative FDs (interest at maturity) are available. This is what the banks we’ve partnered with offer through the digital platform right now.

We’re working on adding non-cumulative FDs with monthly, quarterly, and half-yearly interest payouts. This is on the roadmap and will be available soon.

For now you will have to do it on the banks website, we are working on getting this via APIs on coin reports for you to easily download, might take a coulple of months as we are coordinating with the banks to build these APIs

Blostem doesn’t store your client information. Everything flows through Zerodha’s systems via Kite Connect. You authenticate with your Zerodha account, and we securely handle the data. Blostem just facilitates the banking operations and compliance on the banks APIs even for KYC. Your money goes directly to the bank. Your FD sits with the bank. Your data stays with us.

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It’s strange that even in current times you don’t have mobile first strategy for the new features. There is already competition in the market for this feature but you are so late in this game and still behind… Come on show some agility

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This. Features should come to mobile first and then the web. Even in web, mobile web should come first. But, even the kite interface is buggy in mobile web.

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Hypothetical scenario - If there’s an issue some day in future, customer/depositor may have to run from pillar to post. Bank branch may say you didn’t book with us, call customer care. Customer care may say, contact Zerodha. Zerodha may say, we are just the facilitator, call bank. Fortunately or Unfortunately, this is how things work in India in most cases

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Neelesh says the above. I agree with your comments, what you have mentioned is reality, the gap will be when customer approach the bank, how will they verify the authenticity of the person who has come to the branch.
Maybe the big town branch will be aware of this aspect but in small town, doubtful if customer will be entertained.

Wonder how signature is captured when a customer approach the bank directly.

But concept wise, this is great and wish all brokerage provide this service to open FD with all of the listed banks in India.Also wonder why the banks needs a KYC when it is coming through coin, who must have done a KYC. Wonder if centralised KYC no is of any use.

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Verifying authenticity isn’t a big deal. The bank is anyway getting the KYC done. An Aadhaar OTP on Registered mobile or something like that will do the work. The issue is Service. I don’t have doubt on intent of Zerodha or bank but when it comes to service, thats how things work in India. I have experienced this with HDFC, one of India’s reputed organisations when I had 3 in 1 account with them. Bank sent me to HDFC securities branch and HSL to bank and the cycle continues

And yes, the concept is great but not new. Stable money is already doing this in partnership with Suryodaya Small Finance Bank. They advertised themselves heavily in the last season of Kaun Banega Crorepati. They started with FDs but have now ventured into RD, MFs and even FD backed co branded credit cards

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Is this FD be pledged?