PhonePe on Thursday, 6 August officially launched Fixed Deposit (FD) Distribution on its platform, enabling users to discover, compare, and book FDs from partner banks and Non-Banking Financial Companies (NBFCs) directly within the app. The rollout also introduces a first-of-its-kind Daily Recurring Deposit (Daily RD) product, developed in partnership with Shivalik Small Finance Bank, allowing micro-savings starting at just ₹100 per day.

What the FD Distribution Offers

The new FD feature allows users to open and manage fixed deposits across multiple partner institutions from a single aggregated dashboard inside the PhonePe app. Deposits with partner banks are insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC), in line with Reserve Bank of India (RBI) guidelines. Users can choose tenures ranging from 7 days to 10 years and complete the entire process digitally — including identity verification via PAN and Aadhaar — without visiting a branch.

The Daily RD: A Micro-Savings First

The Daily RD (SIP), launched in partnership with Shivalik Small Finance Bank, is positioned as a hybrid between the disciplined automation of a Systematic Investment Plan (SIP) and the security of a traditional bank deposit. Users can set daily investments between ₹100 and ₹1,000, powered by UPI Autopay mandates. The product offers instant liquidity — withdrawals are permitted after just 7 days — and includes a 15-day consecutive grace period during which missed investments attract no penalties. The mandate can also be stopped at any time.

Who It Is Aimed At

PhonePe has positioned the Daily RD specifically for Millennials, Gen Z, and underbanked populations who may find lump-sum FD commitments difficult. By anchoring the product on UPI rails, the company is attempting to extend formal savings instruments to users who have historically relied on informal or cash-based saving methods. This comes amid a broader industry push to deepen financial inclusion beyond payments into wealth and savings.

What the Company Said

Deep Agrawal, VP and Head of Payments at PhonePe, said: 'At PhonePe, our vision is to empower every Indian to accelerate their financial progress by unlocking seamless access to financial services. The launch of our fixed deposit distribution, along with the Daily RD product, marks a significant milestone in that direction. Fixed Deposits remain a cornerstone of Indian household savings, offering guaranteed returns. By turning a traditionally offline process into a seamless, 100 per cent digital journey, with the ability to interoperably invest using any bank account on the UPI rails, we are making these savings instruments accessible to the heart of Bharat with absolute confidence, capital safety, and convenience.'

How to Get Started

Users can access the feature by opening the PhonePe app and tapping Fixed Deposits or Daily RD under the 'Mutual Funds & Deposit' section on the home screen. After selecting a partner bank or NBFC, users choose a tenure and investment amount, complete digital KYC via PAN and Aadhaar, add nominee details, and confirm payment via PhonePe UPI or Netbanking. For the Daily RD, an automated UPI Autopay mandate is authorised at setup. Withdrawals for both products can be initiated at any time of day.

The launch marks PhonePe's clearest step yet toward becoming a full-spectrum financial services platform, extending well beyond its payments origins into savings and deposits — a space where rivals including Paytm and bank-backed super-apps have also been expanding.