You can invest in Fixed Deposits (FDs) through Coin with Suryoday Small Finance Bank and Utkarsh Small Finance Bank. Both banks offer interest rates ranging from 4.0% to 8.15%, with deposits up to ₹5 lakh insured by DICGC. You can invest a minimum of ₹1,000 and track all your FDs on the Coin platform.
Contents
- Opening an FD and eligibility
- KYC and video verification
- Payments and bank account
- Managing your FDs
- Interest rates and tax
- Withdrawals and maturity
- Safety and troubleshooting
Opening an FD and eligibility
1. Who can invest in FDs through Coin?
You can invest in FDs through Coin if you have an active Zerodha trading and demat account. You must be 18 years or older, an Indian resident, and have an Aadhaar-linked mobile number for OTP-based verification.
2. Which banks are available and what are the investment limits?
You can choose from two small finance banks:
- Suryoday Small Finance Bank
- Utkarsh Small Finance Bank
Both banks are CRISIL/ICRA rated, offer tenures from 7 days to 60 months, and deposits up to ₹5 lakh are insured by DICGC.
Investment limits:
- Minimum: ₹1,000 for both banks
- Maximum: ₹2 crore per FD (UPI payments are limited to ₹1 lakh per transaction; use net banking for higher amounts)
You can invest in multiples of ₹1 and create unlimited FDs. Zerodha charges zero fees for opening, maintaining, or managing FDs through the Coin platform.
3. Do I need an existing account with the bank to invest in FDs?
No. You don't need to be an existing customer of Suryoday or Utkarsh to invest in FDs. You can complete the entire process digitally without opening a savings account with the bank.
4. Why are you only offering small finance banks and not NBFCs?
We offer only bank FDs because:
- Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank
- NBFCs don't have deposit insurance
- Safety matters more than marginally higher interest rates for most people
We made a conscious business decision to prioritise security. Our partner Blostem is working on adding more bank partnerships, and we'll roll them out as they become available.
5. What is Blostem and how does it work with Zerodha?
Blostem is our partner platform that manages FD operations, banking relationships, compliance, and KYC flows. We've integrated with them via Kite Connect, which means:
- You authenticate using your Zerodha login
- Blostem doesn't store any of your client information
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All data flows through Zerodha's secure systems
6. Why is a separate OTP verification required and where does my money go?
Zerodha has partnered with Blostem (a third-party platform) to offer FDs, so a separate OTP is required to securely authenticate your session on Blostem's banking infrastructure.
Your funds go directly to the bank (Suryoday or Utkarsh). The bank creates your FD account, and your investment is fully secure with the bank. Blostem facilitates the transaction but doesn't hold your money.
7. How do I start investing in FDs and when does my tenure begin?
You can invest in FDs through Zerodha by visiting visiting fd.zerodha.com or by clicking on FD section on Coin.
Your FD tenure begins after the bank successfully validates your video KYC, not from the transaction initiation date. If you pay on Day 1 but complete video KYC on Day 2, your tenure starts from Day 2.
KYC and video verification
8. What documents and information do I need for KYC?
Each bank needs to verify your identity separately as per RBI guidelines (this is a regulatory requirement). However, you only complete KYC once per bank. After that, repeat investments with the same bank are much faster.
You'll need:
- Valid PAN card (physical card required for video KYC)
- Aadhaar card
- Bank account details
- Aadhaar-linked mobile number (for OTP verification)
The KYC process collects:
- PAN details and verification
- Aadhaar authentication via OTP
- Address confirmation (fetched from Aadhaar)
- Personal information: father's name, mother's name, annual income bracket, occupation type, marital status (required by the bank to create your FD account and ensure compliance with banking regulations)
- Nominee details (optional, you can add later)
- Bank account details for maturity payouts
Your KYC remains valid for up to 15 years after booking an FD. However, you may need periodic updates as per regulations or if your personal details change.
If your name differs slightly on PAN and Aadhaar, our system uses advanced name-matching technology that usually accepts minor variations such as surname/first name interchanges, middle name differences, and spelling variations, as long as there's at least an 80% name match.
However, significantly different names may cause KYC failure due to banking compliance requirements. While you don't need a physical copy of your Aadhaar for the initial KYC process (PAN and Aadhaar verification), you must have your physical PAN card handy for video KYC.
9. What is video KYC, when is it required, and what documents do I need?
Video KYC is a regulatory requirement where a bank representative verifies your identity through a live video call. You must complete it within 3 days of payment for all FD investments (this is 3 calendar days, not 3 working days).
You can complete video KYC:
- Timings: 8:00 AM to 11:00 PM daily
- Not available on: Sundays and second and fourth Saturdays
You must have:
- Physical PAN card (digital copy won't work)
- Blank sheet of paper
- Pen for your signature
During the video call, you'll be asked to show your PAN card and sign the blank paper as part of the verification process.
10. What happens if I don't complete video KYC within 3 days?
If you don't complete video KYC within 3 days, your FD will be marked for refund, and the invested amount will be automatically returned to your account within 3-4 business days.
11. Why does video KYC happen after payment and not before?
This is the bank's compliance flow. We've found that requiring video KYC before payment leads to significant drop-offs. Since video KYC is a one-time activity per bank, completing it post-payment works better for most users.
12. What if my video KYC fails?
Video KYC may fail for several reasons:
- You don't have your physical PAN card handy
- Signature mismatch
- Details mismatch between documents
- Poor connectivity or technical issues
- Someone else appearing in the video (third-party signalling)
- Attempting video KYC from outside India
If video KYC fails, you can reinitiate it within 3 days of payment. If you're unable to complete it within 3 days, we'll refund your money.
13. Can I complete video KYC if I'm outside India?
No. Video KYC will fail if you're outside India. You must be physically present in India while booking the FD and completing video KYC.
14. Why is my PAN or Aadhaar verification failing?
PAN verification may fail if:
- The PAN doesn't belong to you
- You entered the PAN incorrectly
- There's a mismatch with Income Tax Department records
- The PAN is invalid or deactivated
Ensure your PAN is correct and belongs to you. Your PAN must be verified with regulated authorities for FD booking to proceed.
Aadhaar verification may fail due to:
- Incorrect Aadhaar/VID number
- OTP not received on Aadhaar-linked mobile number
- Aadhaar-linked mobile number is different from registered number
- Network or connectivity issues
Ensure you're using the correct Aadhaar number and the mobile number linked to your Aadhaar is active. If your Aadhaar-linked number is different from your registered number (the mobile number linked with the bank is different from the one registered with the app), you can continue. However, for opening a Digital FD with a bank, it's mandatory to have an Aadhaar-linked mobile number for OTP-based e-KYC authentication. Make sure you have access to your Aadhaar-linked number during the OTP verification step.
Payments and bank account
15. Can I link any bank account and how do I verify it?
For security and regulatory compliance, you can only link and make payments from bank accounts that belong to you. We don't permit third-party accounts. The payment will fail if the bank account linked to your FD investment doesn't match the UPI ID/account used for payment.
You can verify your bank account in two ways:
- UPI autofill: Scan the QR code and pay ₹1 (we'll refund this within 2-3 working days). This confirms your account holder name matches your KYC details, your account is active and functional, and provides enhanced security for future transactions. The system automatically fetches your account details.
- Manual entry: Enter your account number and IFSC code manually. If your bank isn't in the dropdown, check for alternate names (some banks have multiple name variations), use UPI autofill instead, contact customer support for assistance, or request your bank to be added through feedback.
16. What payment methods are available and are they secure?
You can pay via:
- UPI (for amounts up to ₹1 lakh)
- Net banking (for amounts above ₹1 lakh, subject to your bank's transaction limit)
- QR code scanning (UPI-based)
Net banking becomes the default for amounts above ₹1 lakh because UPI limits vary by bank and are often capped at ₹1 lakh per transaction. Net banking allows secure transfer of larger sums without UPI's limitations. We're working on supporting UPI payments up to ₹5 lakh in the near future.
Net banking transactions use encryption and secure payment gateways. Always ensure you're on the official bank's website or our trusted platform (fd.zerodha.com) to safeguard your payment details. We process payments made through UPI or net banking in real-time, and your FD is initiated almost immediately after you complete the transaction (subject to video KYC completion).
17. What if my payment fails or is debited but the FD is not booked?
You can pay from any bank account you own, but we'll credit maturity proceeds only to the bank account you register during the investment process (and it must match your PAN). This is a banking regulation and applies to all FD platforms.
We automatically refund failed payments within 5-7 working days. You can retry the investment with an alternative payment method.
If your payment is debited but the FD is not booked, first check the Orders section on fd.zerodha.com to see if the FD appears. If there's no record:
- Contact customer support immediately with transaction details
- We'll typically refund the debited amount within 3-4 business days if the booking didn't go through
- Keep records of your transaction and any communication for reference
If the issue persists, contact support with your mobile number and transaction details.
18. Why does my FD booking fail during payment or what if my payment fails repeatedly?
We may reject FD applications during payment due to:
- Insufficient funds in your account
- Incorrect payment details
- Temporary technical glitches on the bank's platform
- Exceeding transaction limits
- KYC discrepancies or compliance-related flags
If your payment fails repeatedly, check your account balance and transaction limits, verify your payment method details are correct, try an alternative payment method (switch between UPI and net banking), and contact your bank to resolve any issues with your account. Contact your bank's customer service or our support team for specific insights and assistance.
19. Are there different interest rates based on payment method?
No. Interest rates do not vary based on the payment method you choose (UPI vs net banking). The bank, tenure, depositor category, and payout mode only determine rates.
Managing your FDs
20. Can I add or change a nominee?
Adding a nominee is optional during the initial investment process, but we highly recommend it. You can skip this step and add nominee details later.
For some banks, you can update nominee details digitally through the platform on the FD's details page. For banks where this isn't supported digitally yet, share nominee details with our support team, and we'll coordinate with the bank.
Currently, you can add one nominee per FD through the platform. If you wish to nominate more than one person, you may need to visit the bank's nearest branch or contact support for assistance. You can add minors as nominees, but you'll need to provide guardian details as well.
21. Where can I track my FD investments and why aren't they visible on Console?
You can track your FDs in three sections on fd.zerodha.com:
- Holdings: Shows all active FDs with investment amount and maturity value, current status (Active/Pending VKYC/Matured), interest earned and maturity date
- Orders: Tracks FD investments in progress or completed, including payment status
- Payments: Shows detailed payment history
Currently, we don't display FD investments on Console as they represent a different investment category with fixed interest rates, separate from equity and mutual fund investments. FDs operate independently through banking channels (they're not held in your demat account). However, you can track your FD investments on the Coin platform for consolidated portfolio monitoring. We're working on integrating this into Console in the future.
You can create multiple FDs across different banks, tenures, and amounts. Each FD is treated as a separate investment, and there's no limit on the number of FDs you can book.
22. What confirmation will I receive after booking an FD?
You'll receive:
- Confirmation on WhatsApp immediately after successful booking
- FD receipt directly from the bank to your registered email
- All details visible in the Holdings section on fd.zerodha.com
23. Can I transfer my existing bank FD to the Coin platform or use FDs as collateral?
You cannot transfer existing bank FDs to Coin. If you wish to track an FD on the platform, you would need to close your existing FD (subject to bank terms and premature withdrawal penalties) and create a new FD through Coin.
Currently, you cannot pledge FDs as collateral margin on Zerodha. We might consider this feature in future versions of the product. Loans against FDs are also not available through the platform currently. You can contact the bank's nearest branch directly to enquire about this facility. Some banks do offer overdraft facilities against FDs, but you need to arrange this directly with the bank.
24. Can I transfer my FD to someone else and why is there only one payout mode available?
As per regulatory guidelines, FDs are non-transferable investments tied to the original investor's KYC and banking details. You cannot transfer FDs to another person.
The partner banks and regulatory requirements determine the available payout modes. Currently, the platform offers the most commonly used payout option: interest at maturity (cumulative). Monthly, quarterly, and half-yearly interest payout options (non-cumulative) will be available soon.
Interest rates and tax
25. Are the interest rates final and how are they determined?
Yes. The interest rates shown during investment are final and guaranteed for your tenure. We update rates regularly based on bank notifications. Interest rates are fixed at the time of investment and remain unchanged throughout the tenure. This is one of the key benefits of FDs—guaranteed, predictable returns.
Interest rates vary based on:
- The bank you choose
- Tenure of the FD
- Interest payout mode (cumulative vs non-cumulative)
- Whether you're a senior citizen
- Special categories (women, for specific products)
26. Do senior citizens or women get special interest rates?
Senior citizens (60+ years) receive preferential interest rates:
- Suryoday Small Finance Bank: Additional 0.4%
- Utkarsh Small Finance Bank: Additional 0.5%
The system automatically applies this benefit based on your KYC details (date of birth).
Special women benefit rates are available only for specific products (e.g., certain Shriram FD products if/when added). The system automatically applies applicable benefits based on your KYC details. For Suryoday and Utkarsh, there are currently no separate women-specific rates.
27. How is interest calculated and when is it paid out?
Interest is calculated annually and compounded quarterly (every 3 months). At the end of each quarter, the accrued interest is added to the principal, generating additional returns. For example, with Suryoday Small Finance Bank FDs, interest compounds every 3 months.
For most FDs, we pay interest at maturity along with the principal amount (cumulative FDs). Non-cumulative FDs with monthly, quarterly, or yearly interest payouts will be available soon.
- Cumulative FD: Interest is compounded over the deposit term and paid at maturity along with principal. This generates higher returns due to compounding.
- Non-cumulative FD: Interest is payable on a monthly, quarterly, half-yearly, or yearly basis based on the tenure chosen. Useful if you need regular income.
Currently, only cumulative FDs (interest at maturity) are available through the platform.
28. How is TDS calculated and can I avoid it?
TDS (Tax Deducted at Source) is deducted on FD interest as follows:
- TDS Rate: 10% (if PAN is linked)
- Threshold: TDS is deducted if total interest earned across all FDs in a financial year exceeds ₹40,000 for regular depositors and ₹50,000 for senior citizens
If you don't link your PAN, TDS is deducted at a higher rate of 20%.
If your total income is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to avoid TDS deduction. You can file TDS exemption online for Suryoday Small Finance Bank FDs through the platform.
If TDS is deducted but your actual tax liability is lower (or nil), you can claim a refund when filing your income tax return. TDS details will be available in Form 26AS and your Annual Information Statement (AIS).
29. Are FDs eligible for tax deductions under Section 80C?
Regular FDs do not qualify for tax deductions under Section 80C.
However, Tax Saver FDs (5-year lock-in) qualify for deduction under Section 80C up to ₹1.5 lakh per financial year with these features:
- Investment limit: ₹1,000 to ₹1.5 lakh per financial year
- Lock-in period: 5 years (no premature withdrawal allowed)
- Tax benefit: Only on principal amount (interest is still taxable)
- Auto-renewal: Not available
30. How do I download my FD receipt and TDS details?
- FD Receipt: Sent to your registered email by the issuing bank. You can also view FD details in the Holdings section on fd.zerodha.com.
- TDS Details: Available in the bank's statements and your Form 26AS/AIS, which you can download from the Income Tax e-filing portal.
Withdrawals and maturity
31. Can I withdraw my FD before maturity and how does the penalty work?
Both Suryoday and Utkarsh allow premature withdrawal after 7 days with a penalty:
- Lock-in period: 7 days (no withdrawal allowed between 0-7 days)
- Penalty: 1% reduction on the applicable interest rate for the period the deposit remained with the bank
- Principal: No penalty on principal invested; only interest is affected
The penalty is applied to the interest rate, not the principal. For example, if you invested ₹1 lakh for 1 year at 7% and withdrew after 6 months, applicable interest for 6 months at 7% = ₹3,500. With 1% penalty, new rate = 6%, so interest you'll receive = ₹3,000. Your principal (₹1 lakh) remains intact.
Tax Saver FDs have a mandatory 5-year lock-in period. We don't allow premature withdrawal under any circumstances.
You can request premature withdrawal from the FD details page in the Holdings section on fd.zerodha.com. Select the FD you want to withdraw and follow the process. Withdrawal amounts are typically credited to your registered bank account within 6-8 hours after we process the request.
32. What happens when my FD matures and can I change maturity instructions?
At maturity:
- We credit the maturity amount (principal + interest) to your registered bank account (matching your PAN—this is a regulatory requirement and cannot be changed)
- You'll receive a notification via email/SMS
- The FD status changes to "Matured" in the Holdings section
Typically, we credit funds within 6-8 hours of maturity.
Auto-renewal options and the ability to change maturity instructions are under development and will be available soon for Suryoday Small Finance Bank FDs.
Safety and troubleshooting
33. Are FDs safe and what insurance protection do they have?
FDs are considered one of the safest investment options because:
- They're non-market-linked (returns don't depend on capital markets)
- Interest rates are pre-fixed and guaranteed
- Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank
Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of RBI that provides deposit insurance covering all kinds of deposit accounts: savings, current, recurring, and fixed deposits with a limit of up to ₹5 lakh per depositor per bank. All your FDs with a single bank (Suryoday or Utkarsh) are insured collectively up to ₹5 lakh.
If a bank fails, your deposits up to ₹5 lakh per bank are protected under DICGC insurance. DICGC will reimburse the insured amount. This applies to both Suryoday and Utkarsh Small Finance Banks.
34. How is my personal information and data protected?
We employ robust security measures:
- Encryption: All data is encrypted using industry-standard protocols to ensure confidentiality during the entire FD booking process
- Multi-factor authentication: OTP-based verification at multiple steps
- Secure payment gateways: Bank-grade security for transactions
- Regular security audits: To prevent unauthorised access
We maintain your privacy by adhering to strict privacy policies and data protection regulations, using your information only for FD transactions, not sharing your information with unauthorised third parties (we do not share your information with third parties for FD bookings without your explicit consent, unless required by law or regulatory authorities), and storing data securely with access controls.
We adhere to strict security protocols to safeguard your Aadhaar, PAN, and other sensitive data provided during FD bookings. We regularly review and update security measures to stay ahead of emerging threats and ensure ongoing safety of FD transactions.
If you notice any unauthorised activity, immediately contact customer support, report the issue with specific details, and we'll take appropriate action to secure your account.
35. I'm getting an "Internal Server Error" or haven't received the OTP. What should I do?
An "Internal Server Error" usually indicates a temporary technical issue with the bank's servers. Try again after a few minutes. If the problem persists:
- Clear your browser cache and try again
- Try a different browser or device
- Contact support with your mobile number and transaction details
OTP delivery may sometimes be delayed. Wait 2-3 minutes and try resending the OTP, check if your mobile number is registered correctly, ensure you have network connectivity, and contact support if the issue persists.
36. What should I do if my FD is rejected after payment?
If we reject your FD application after payment (due to KYC failure or other reasons):
- We'll refund the invested amount to your account within 3-4 business days
- You'll receive a notification about the rejection
- You can retry the investment after resolving the issue
37. What permissions does the app require?
The app requires permissions to send SMS (to send verification codes via SMS for login) and access phone state (to verify device identity for security during login). These permissions enhance security and ensure smooth authentication.