Now you can open Fixed Deposit (FD) through Google Pay. Google has tied up with fintech company Setu to start this feature. The FD scheme will be given to the customers of India only through the API of Setu. Google started offering FDs with Equitas Small Finance Bank.
Under the agreement with Google, the FD of Equitas Small Finance Bank will be given for one year. The maximum interest of 6.35 percent will be given to Google Pay customers on making FD. To take this FD scheme of Google, the customer will have to do KYC by giving his Aadhaar number. On the basis of Aadhaar number, an OTP will be sent to the mobile. For this, ‘Setu’ has prepared a beta version for the API. Now the work after this has been continued so that this scheme can be started at the earliest. Google will not sell its own FD scheme but will give FDs of other banks to customers through Google Pay.
Dependence on banks will end
Google Pay is said to be a great convenience for FD customers, as it will be completely mobile based. The FD scheme is being considered as a big initiative in view of the way Google Pay has increased in smartphones. Now one will not have to depend only on banks or non-banking institutions for FD. Now this work can be done from mobile and that too will be possible with mobile wallet like Google Pay. The best part is that to open an FD in a bank, it is not necessary to have a savings account with that bank.
Who can open FD
The report states that Aadhaar based KYC will be mandatory for opening FDs. That is, any customer who wants to do FD through Google Pay will have to complete Aadhaar KYC. Otherwise, he will not be able to get the FD done.
How much interest will you get
According to the information given, FD scheme will be given for 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days and 365 days. 3.5% interest will be given for shortest day FD and 6.35 percent for 1 year FD.
Money will come to the account linked to Google Pay
According to the information received, when the FD matures on Google Pay, then its money will be transferred to the customer’s Google Pay account. In this, the customer will have a direct relationship with Google and Google Pay and not Equitas Small Finance Bank. Similar is the case with Ujjivan Small Finance Bank and AU Small Finance Bank. Later their FD schemes can also be bought through Google. If this system is successful then it may be applicable to other payment apps as well.
Trust in FD
At present, most of the people’s focus on investing in India is on mutual funds and stocks. But when it comes to savings, fixed deposits (FDs) are the most trusted. However, despite the benefits available in the FD scheme, it is still ignored. The rate at which people keep money in a savings account, does not invest in FD at that rate. Google’s focus is that people can be linked to FD through Google Pay.
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