Introducing Fixed Deposits on Coin

Indian online brokerage Zerodha has expanded its Coin investment platform with the introduction of fixed deposits (FDs), allowing users to open and manage FDs from multiple small finance banks in one place.

The feature, announced on January 23, 2025, addresses the common challenge of tracking scattered FD accounts across different banks. Coin now provides side-by-side interest rate comparisons, aggregate invested amount, accrued interest, and upcoming maturity dates within a single dashboard.

Zerodha is launching with four small finance banks, all regulated by the Reserve Bank of India and covered under the DICGC insurance up to ₹5 lakh per depositor per bank. The initial banks and their highest offered rates are: Suryoday Small Finance Bank (up to 8.0% p.a.), Utkarsh Small Finance Bank (up to 8.0% p.a.), Unity Small Finance Bank (up to 8.0% p.a.), and Shivalik Small Finance Bank (up to 8.30% p.a.). Tenures range from 7 days to 60 months. Premature withdrawal is permitted after 7 days, with applicable penalties displayed upfront.

How to Invest

Users can access the new FD option via the Coin app by tapping “Fixed Deposits” and then “Invest”. On the web, they can log in through Kite and navigate to “Fixed Deposits” or visit fd.zerodha.com. The investment process involves selecting a bank and tenure, using a return calculator, entering a minimum deposit of ₹1,000, choosing payout mode (at maturity, monthly, or quarterly), and selecting maturity preference (refund or reinvest).

First-time investment with a bank requires a one-time KYC process including PAN, Aadhaar verification, basic details, nominee information, mobile OTP verification, and bank account addition via UPI or account details. A short video KYC must be completed within three days. Subsequent investments skip the KYC steps. Senior citizens are automatically presented with higher applicable interest rates based on PAN details.

Interest earned on FDs is taxable as per the investor’s income tax slab. TDS is deducted by banks if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, calculated per bank. Users are responsible for reporting total interest across all FDs when filing returns. Auto-renewal is optional, with advance notice provided before execution. FDs cannot be pledged as collateral.

Note: Zerodha Broking Ltd. acts solely as a distributor for FD products, and related disputes are not covered by SEBI’s SCORES/ODR, exchange grievance mechanisms, or arbitration.