Paytm Payments Bank, the banking arm of Paytm, has announced that it has entered into a partnership with IndusInd Bank that enables the fixed deposit service.
With this partnership, the company is introducing a service that will create a fixed deposit when the customer balance exceeds Rs. 100,000 at the end of the day. In a statement, the company revealed that customers will be able to redeem their deposits instantly, without paying any pre-closure or miscellaneous charges.
According to the company, customers will be able to earn up to 6.85% annual interest on the fixed deposit. Commenting on this new offering, Renu Satti, MD and CEO of Paytm Payments Bank stated,
Majority of Indians prefer safer investment options that offer them higher earning potential. Our offering will add the much-needed convenience of zero paperwork, instant redemption and no charges to one of India’s most preferred investment methods.
The company further said that if a customer becomes a senior citizen before the maturity period, the FD will be auto-renewed under the senior citizen scheme, thus earning higher interest. As per the company, this new offering will help boost customer’s savings and earnings potential.
The payments bank service was launched on November 23, 2017, and carries zero charges on all online transactions and no minimum balance requirement. The bank also offers free personalised RuPay digital debit card. Currently, the service is offering around 4 percent to 7 percent interest rates on savings accounts and up to 7 percent on a linked sweep out Fixed Deposit.