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It has been a long time that Paytm has started its banking services. But earlier doing a Fixed Deposit meant only auto sweep of money above 1 lakh in the savings account to the FD account. Now, this has changed and you can fixed deposit any amount of money anytime – even if you have less than 1 lakh rupees in your savings account. Also you can set the auto sweep limit to any amount between 10,000 to 1 lakh, as you want.
Paytm does not have its own bank, it collaborates with 3rd party private banks to continue its banking services. Presently the Fixed deposit scheme is done with collaboration with Indusind Bank.
How to start a fixed deposit in Paytm?
Now you need to register yourself in Paytm using your details like mobile number and email address.
Once you are registered, you need to do a KYC to use the banking facility.
How to do KYC in PayTM?
To do a KYC, you can go to the KYC option in Paytm and provide you PAN and Adhaar details and schedule an appointment with KYC agent.
Keep the original of the required documents – photo ID proof and address proof and PAN card ready for verification on the appointment date.
Opening a bank account in Paytm
Once the KYC is done, you can open a bank account in Paytm by going to the bank option and selecting open account. It would take some time for processing and verification of your KYC. The process in all online, and you have to do nothing and just wait. It takes hardly one day to complete the process.
Once done, you would have your account ready. The account number would be similar to your mobile number which is registered in Paytm. You would also get a virtual debit card. You can get a real debit card as well if you want. You need to pay some amount for that and the real card has an yearly fees, but virtual card is free of cost.
You would also get a interest of 3.35% per annum on the amount you have in your account.
Interest rate of Paytm Fixed Deposit
Opening the fixed deposit FD account
In the banking section of the app, you can find Fixed deposit option. Get into it and apply for opening a FD account. Once the request is received, you need to wait for a day for maximum, for the verification of you KYC to be completed – similar to opening the savings account.
Once the verification is done, your FD account would be ready and you can invest money into the same. You can pay via debit card, online banking, or transfer money from paytm savings account or UPI.
You would get a tenure of 13 months by default. There would be no penalty for early withdrawal of money. The interest would be defined according to the time you keep your money in the FD for. The highest being 6.65% per annum presently if you keep for atleast 1 year.
You can track the interest earned for every day and the percentage timeline in the FD section of the paytm app.
Once 13 months is completed, the interest would be credited to your FD account and the total amount would be again fixed for another tenure that would give you the highest interest.
Activating auto-sweep facility in Paytm savings account
- Open Paytm app and go to banking section
- Scroll down and you would be able to find “Automatically create fixed deposit”
- Click on “Change Limit”
- Select any limit you want – above this limit , the amount in the savings account would be automatically fixed to earn higher interest
- Click on Confirm.
Thank You – Happy Savings!!