You can now invest in fixed deposits on Zerodha’s Coin: Rates, banks and how it works

Zerodha has launched fixed deposit (FD) investments on its Coin platform, marking another step in its push to broaden beyond equities and mutual funds into more traditional savings products. The move allows users to invest in fixed deposits across multiple banks through a single interface, addressing a long-standing friction in retail investing where deposits are spread across institutions and tracking becomes cumbersome.

The offering enables investors to compare interest rates, monitor accrued interest and track maturity timelines in one place.

The platform has initially onboarded three small finance banks, Suryoday Small Finance Bank, Utkarsh Small Finance Bank and Unity Small Finance Bank, offering interest rates of up to 8% per annum. Deposits come with tenures ranging from 7 days to 60 months, with premature withdrawal allowed after a minimum lock-in period of 7 days, subject to penalties that are disclosed upfront.

All three banks are regulated by the RBI, and deposits of up to Rs 5 lakh are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), providing an added layer of safety for retail investors.

The introduction of FDs reflects Zerodha’s broader strategy of building a full-stack investment platform that caters not just to market-linked instruments but also to low-risk savings products. While Coin began as a direct mutual fund marketplace, the company has steadily expanded its product suite to include government securities and, more recently, index funds.

Zerodha’s entry into index funds marked a shift towards passive investing, targeting cost-conscious investors seeking market returns without active fund management fees. The addition of fixed deposits now complements that strategy by bringing in capital that traditionally stays outside market instruments due to risk aversion.

The move also aligns in the context of India’s savings landscape, where a large portion of household wealth continues to be parked in fixed deposits due to their predictability and ease of use. By integrating FDs into a digital investment platform, Zerodha is attempting to bridge the gap between traditional savings behaviour and modern portfolio management.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)