How to Invest in Bank FDs via Zerodha Coin: Step-by-Step Guide
Zerodha Coin recently introduced the feature allowing users to invest in fixed deposits (FDs) from select small finance banks, namely Suryoday and Unity Small Finance Banks, through a partnership with Blostem. This integration enables Zerodha users to conveniently park money in bank FDs without exiting the trading platform ecosystem. The minimum investment amount is ₹1,000, with additional interest benefits for senior citizens. The entire investment process, including KYC and payment, is done digitally, ensuring ease of use and compliance.
How to Invest in FDs through Zerodha Coin
Log in to your Zerodha Coin account at coin.zerodha.com.
Navigate to the Fixed Deposits section.
Click on "Invest" and select your preferred FD from Suryoday or Unity Small Finance Bank.
Enter the investment amount (minimum ₹1,000, multiples of ₹1) and choose the tenure. Use the FD calculator if needed.
Review the details and accept the undertaking.
You will be redirected to Blostem to log in with your mobile number and OTP.
Complete PAN and Aadhaar authentication, and verify bank details.
Add a nominee and set up two-factor authentication (email + SMS OTP).
Make the payment via UPI, netbanking, or QR code.
Complete video KYC (VKYC) within 3 working days; the FD tenure starts only after VKYC approval.
Receive confirmation once your FD booking is successful.
Important Features and Considerations
Video KYC (VKYC) is mandatory and must be completed within 3 working days, or the investment amount is refunded.
Interest rates may be higher than traditional banks as the current offerings are from small finance banks.
Interest earned on FDs is taxable, and TDS may apply if interest exceeds specified thresholds (different for senior citizens).
Premature withdrawals are generally allowed after 7 days with penalties for Suryoday and Unity Bank FDs, but tax-saver FDs have a 5-year lock-in period with no premature withdrawal allowed.
Senior citizens get an additional 0.4% interest on Suryoday FDs and 0.5% on Unity FDs.
Women-specific benefits are available on certain FD products from Shriram, applied automatically based on KYC.
Multiple FDs can be created with different banks and tenures; however, these FDs are not linked to Zerodha Console but can be tracked on the Coin platform.
Payments must be made from bank accounts owned by the investor only; third-party payments are not allowed.
The feature does not allow pledging of these FDs as collateral for margin trading currently.
FAQs Summary
The minimum investment is ₹1,000 per FD.
Both minors (with guardians) and adult investors can create FDs.
Interest is compounded annually and typically paid at maturity with the principal.
Users can track the status, interest earned, and maturity details on the Coin platform.
The platform supports secure payments and resumption of interrupted transactions.
Tax Saver FDs provide tax benefits under Section 80C with a 5-year lock-in and a maximum investment limit per financial year.
This streamlined process on Zerodha Coin simplifies investing in bank-fixed deposits, helping investors diversify their portfolios with safe and steady returns while retaining everything within one platform ecosystem.
