PhonePe has expanded its offerings by launching fixed deposit (FD) distribution is in partnership with multiple banks and NBFCs. The daily recurring deposit (SIP) is in partnership with Shivalik Small Finance Bank. The new feature on the PhonePe app allows users to open FDs digitally, while the Daily RD lets them start investing with as little as Rs 100 a day through UPI AutoPay.

Users can compare and instantly book fixed deposits directly through the PhonePe app. Multiple FDs across partner banks can be managed from a single platform, says PhonePe in a statement. Deposits booked with partner banks are insured up to Rs 5 lakh under the DICGC scheme, says PhonePe.

This Daily RD option on the PhonePe app allows mainstream consumers, millennials, Gen Z, and underbanked populations to automate small-ticket investments ranging from Rs 100 to Rs 1,000 per day.

Step 1: Open the PhonePe app and tap fixed deposits or Daily RD under the ‘Mutual Funds & Deposit’ section on the home screen
Step 2: Select the preferred partner bank or NBFC from the aggregated dashboard
Step 3: Select the tenure (7 days up to 10 years) and enter the investment amount

Step 4: Perform instantaneous digital identity verification via PAN and Aadhaar
Step 5: Add nominee details and complete the secure payment via PhonePe UPI or netbanking to book the deposit instantly
For Daily RD, authorise the automated UPI Autopay mandate.
Step 6: The PhonePe app offers flexibility to withdraw FDs and Daily RDs seamlessly at any time of the day.

A recurring deposit (RD) allows users to make small monthly contributions, gradually building a substantial sum by the time of maturity. While an investor consistently deposits into their RD account, the accumulated amount also accrues interest.