Paytm Payments Bank has announced a new fixed deposit scheme for its customers. India's largest payments bank is offering an interest of up to 7.5% on their fixed deposits (FDs) through Paytm Payments Bank's partner bank IndusInd Bank Ltd. The new fixed deposit scheme will be launched in early November. The new scheme will also enable savings account customers to create a fixed deposit with Paytm Payments Bank's partner bank, irrespective of the quantum of their investment, Satish Kumar Gupta, managing director and chief executive officer of Paytm Payments Bank, said.
Customers can instantly redeem the partial/complete amount from their fixed deposit at any time free of charge, added Gupta.
Paytm Payments Bank has also reduced interest rate on savings account deposits by 50 basis points to 3.5%. The new rate will be effective from November 9. "The RBI (Reserve Bank of India) recently cut the repo-rate by 25 basis points (bps) to 5.15%, which takes its cumulative cuts so far in the last 12 months to 135 basis points, which has prompted this move," said Gupta.
According to Paytm's official website, FDs will be booked with a maturity period that provides the highest interest rate. In case your FD is closed prematurely, before completion of the minimum period of 7 days, no interest shall be paid for the said FD, said Paytm. If your fixed deposit is closed prematurely before completion of the minimum period of 7 days, no interest shall be paid. The fixed deposit rate will be automatically renewed on maturity. The maturity period is mentioned as 13 months, according to the official website. There will be no penalty if you redeem the amount before maturity.
Customers can create fixed deposits starting from as low as Re 1 in Paytm Payments Bank's partner banks. According to the RBI's licensing and operative guidelines, the customer's aggregate balance in their payments bank account at the end of the day can not exceed ₹1 lakh.
As of April 2019, the Paytm Payments Bank have over ₹500 crore deposits in savings accounts, making it the largest payments bank in India in terms of deposits.