Latest Paytm Payments Bank FD Interest Rate April 2023
Paytm Payments Bank Fixed Deposit (FD) interest rate ranges from 2.75% to 5.50% for the general public and up to 6% for senior citizens. The deposit tenure ranges from a week (7 days) to 356 days for a standard FD scheme. The minimum investment required to open an FD account with Paytm Payments Bank is Rs.100. However, as per RBI’s licensing and operative guidelines for Paytm Payments Bank, the aggregate customer balance limit at the end of the day cannot exceed Rs.2 lakh.
Paytm Payments Bank offers two types of FD schemes as part of standard FD offering – Cumulative and Non-Cumulative. This article delves into the details of the fixed deposit and the Paytm Payments Bank deposit rates.
Paytm Payments Bank FD Interest Rates 2023 Highlights
| Interest Rate | 2.75% – 5.5% |
| Tenure | 7 days – 1-year |
| Minimum Deposit | Rs.100 |
| Maximum Deposit | No upper limit |
| Lock-in Period | NIL |
How to Calculate Paytm FD Rate?
The interest on fixed deposits can be calculated via the simple interest method and the compound interest method.
Calculate Paytm Payments Bank FD Rate – Simple Interest
Simple interest is calculated at a predetermined interest rate throughout the investment tenure.
The formula for simple interest calculation is as follows:
Simple Interest = (P * R * T)/100
Where,
- P is the amount invested,
- R is the rate of interest charged, and
- T is the tenure
For example, if you have invested Rs.1 lakh for 10 years at 7% p.a. interest rate, then,
- P = Rs.1 lakh
- R = 7%
- T = 10 years
Simple Interest = (1,00,000 * 7 * 10) /100 = Rs.70,000
Maturity Value = Principal Amount + Simple Interest = Rs.1,00,000 + Rs.70,000 = Rs.1.7 lakh
This means that when your Paytm Payments Bank Fixed Deposit matures, you will receive Rs.1,70,000.
Calculate Paytm Payments Bank FD Rate – Compound Interest
The other method of calculating the FD maturity amount is via the compounding method. Here, the interest earned is added to the principal amount. The amount then becomes the new principal amount, which then starts earning interest. This continues, and the interest earned can become very large over time.
The formula for compound interest calculation is as follows:
A = P (1+r/n) ^ (n * t)
where,
- A is the amount you receive at maturity,
- P is the amount invested,
- r is the rate of interest in decimals,
- n is how many times the amount compounds in a year, and
- t is the tenure.
For example, if you invest Rs.1,00,000 for 10 years at 5% p.a. compounded quarterly, then,
- P = Rs.100,000
- r = 5%
- n = 4
- t = 10 years
Maturity Value = 1,00,000 (1+0.05/4) ^ (4*10) = Rs.1,64,361
Compound Interest = Rs.1,64,361 – Rs.1,00,000 = Rs.64,361
Hence, at the time of FD maturity, you will receive Rs.1,64,361.
Paytm also offers a Paytm FD calculator that allows customers to calculate their investment return easily. Alternatively, you may simply use the Navi Calculator embedded below for your quick research.
Factors that Can Affect Paytm Bank FD Rates
Here are some of the factors that can have an impact on Paytm Bank FD interest rate:
1. FD Tenure
Interest rates on FDs vary based on tenure. Long-term FDs generally offer higher interest rates than short-term FDs.
2. Economic Conditions
India’s monetary and fiscal policies led by the prevailing economic conditions can significantly impact the fixed deposit interest rates.
3. Age
Senior citizens with a fixed deposit in Paytm can earn a higher FD interest rate than the standard rate.
Paytm FD Interest Rate 2023 for General Public
Paytm Payments Bank interest rate varies between 2.75% and 5.50% for the general public. The tenure ranges from 7 days to 356 days. While the minimum investment is Rs 100, there is no maximum defined. Paytm Payments Bank does not charge a penalty on premature withdrawals which is one of the unique and attractive features of this FD product. The below table represents Paytm payments bank FD interest rate in 2023.
| Tenure | Interest on Deposits |
| 269-356 Days | 5.50% |
| 210-268 Days | 5.00% |
| 140-209 Day | 4.50% |
| 120-139 Day | 4.00% |
| 90-119 Days | 3.75% |
| 60-89 Days | 3.50% |
| 45-59 Days | 3.00% |
| 7-44 Days | 2.75% |
Paytm FD Rate for Senior Citizens
Senior citizens with a Paytm FD can earn an interest rate up to 6% (0.5% higher than the standard FD offered to the general public). The table below outlines the tenure-wise FD rates for senior citizens.
| Tenure | Interest Rate |
| 269-356 Days | 6.00% |
| 210-268 Days | 5.50% |
| 140-209 Day | 5.00% |
| 120-139 Day | 4.50% |
| 90-119 Days | 4.25% |
| 60-89 Days | 4.00% |
| 45-59 Days | 3.50% |
| 7-44 Days | 3.25% |
Paytm Payments Bank Vs Other Banks’ FD Interest Rates
Below is a comparison of Paytm Bank FD rates for the standard FD with other banks. The upper limit for interest rate includes interest rate on senior citizen FDs.
| Bank Name | Tenure | Interest Rate |
| Paytm Payments Bank Fixed Deposit | 7 days to 1 year | 2.75% to 6.00% |
| SBI Fixed Deposit | 7 days to 10 years | 3% to 7.50% |
| HDFC Fixed Deposit | 7 days to 10 years | 3% to 7.75% |
| ICICI Fixed Deposit | 7 days to 10 years | 3% to 7.60% |
| Axis Bank Fixed Deposit | 7 days to 10 years | 3% to 7.26% |
| Punjab and Sind Bank Fixed Deposit | 7 days to 10 years | 2.80% – 7.60% |
| IndusInd Fixed Deposit | 7 days to 5 years and above | 3.50% to 8.25% |
| Bank of Baroda Fixed Deposit | 7 days to 10 years | 3% to 7.55% |
| Canara Bank Fixed Deposit | 7 days to 10 years | 4% – 7.75% |
| Bank of India Fixed Deposit | 7 days to 10 years | 3% to 7.80% |
| Union Bank Fixed Deposit | 7 days to 10 years | 3% to 8.05% |
| DBS Bank Fixed Deposit | 7 days to 5 years and above | 2.5% to 8% |
| Kotak Bank Fixed Deposit | 7 days to 10 years | 2.75% to 7.70% |
| IDFC Bank Fixed Deposit | 7 days to 10 years | 3.50% to 8.25% |
| Central Bank of India Fixed Deposit | 7 days to 10 years | 4% – 6.75% |
| Yes Bank Fixed Deposit | 7 days to 10 years | 3.25% to 8.25% |
| Post office Fixed Deposit/Time Deposit | 1 year to 5 years | 6.6% to 7% |
| IOB Fixed Deposit Interest Rate | 7 days to 10 years | 4.30% to 7.75% |
| Bandhan Bank Fixed Deposit | 7 days to 10 years | 3.75% to 8.50% |
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Features and Benefits of Paytm Payment Bank Fixed Deposit
Here are some of the features and benefits of Paytm FD:
- A deposit of Rs.100 is enough to start an FD.
- The interest rate ranges from 2.75% to 6%, and the tenures range from 7 days to 356 days.
- The FD is opened with a maturity period that provides highest interest. The customer may then redeem the FD any time.
- Principal amount + interest earned during the investment period, less TDS, will be credited upon withdrawal.
- There is no penalty for premature withdrawal from the fixed deposit. However, if FD is redeemed within the minimal 7 days, no interest will be paid.
- Partial withdrawals from fixed deposits are allowed.
- There is a provision for the auto-creation of an FD when the amount in a savings account exceeds a user-specified threshold.
- Paytm Bank FDs can be created and dissolved anytime and anywhere with a single click.
Different Types of Paytm Payments Bank FD Schemes
Paytm offers three types of fixed deposit schemes designed to serve different purposes. These schemes are:
- Cumulative Fixed Deposit
- Non-Cumulative Fixed Deposit
- Senior citizen Fixed Deposit
1. Cumulative Fixed Deposit
- Minimum investment: Rs.100
- Maximum Investment: NA
- Tenure: 7 days to 356 days
- Interest rate: 2.75% to 5.50%
- Interest is paid only at maturity
- Ideal for customers who do not want regular interest payments.
2. Non-Cumulative Fixed Deposit
- Minimum investment: Rs.100
- Maximum Investment: NA
- Tenure: 7 days to 356 days
- Interest rate: 2.75% to 5.50%
- Interest is paid regularly.
- Ideal for those who require regular interest payments.
3. Senior Citizen Fixed Deposit
- Minimum investment: Rs.100
- Maximum Investment: NA
- Tenure: 1 year
- Interest rate: 3.25% to 6%
- Applicable for people over 60 years.
How to Invest in a Fixed Deposit in Paytm Payments Bank?
Once you have an active savings account with Paytm, follow the steps below to open a Paytm Bank FD account:
- Step 1: Open the Paytm app on your smartphone.
- Step 2: Navigate to the “Paytm Bank” option.
- Step 3: Enter your password to access the Paytm Bank.
- Step 4: Click on “Create FD”.
- Step 5: Enter the amount you want to invest.
- Step 6: Click on “Proceed” to complete the process.
Documents Required to Open Paytm Bank FD
To open a Paytm Bank FD account and complete the required KYC procedure, you may need the following documents –
- PAN Card
- Aadhaar Card
- Voter ID
- Passport
- Driving Licence
Eligibility to Open Paytm Payments Bank FD
You must meet one of the following eligibility criteria to open a Paytm Bank FD:
- Resident of India
- Senior citizen
- Owner of an individual or a joint venture
- A Society
- Own a sole proprietorship
- Owner of a company
Taxation on Paytm Bank FD
- The interest earned on fixed deposits is considered “income from other sources” and is taxed as per the investor’s income tax slab.
- Banks deduct an annual TDS on interest earned through FDs if the amount exceeds Rs.40,000 (Rs.50,000 for senior citizens) in a financial year.
- A TDS certificate (Form 16A) details the tax paid to the Income Tax department on your behalf from the interest income on FD.
- The TDS certificate can be requested, and when filing your ITR, you can adjust it against your tax liability.
Final Word
Paytm Payments Bank has a uniquely structured fixed deposit offered in partnership with IndusInd Bank, with tenures ranging from 7 days to 356 days. Interest offered varies from 2.75% to 6% (inclusive of senior citizen rates). The stand-out feature of the Paytm Payments Bank Fixed Deposit is that the deposit may be redeemed at any time without penalty becoming applicable. Make sure to go through Paytm’s fine print carefully to understand their fixed deposit scheme in detail.
Looking for other-tax saving instruments? You can consider investing in Navi ELSS Tax Saver Nifty 50 Index Fund (ELSS) with Navi Mutual Fund and claim tax deduction benefits of up to Rs.1.5 lakh. Download the Navi app, explore funds and start investing
FAQs
The minimum deposit required to open a Paytm fixed deposit account is Rs.100.
Creating a fixed deposit account with Paytm is quick and easy and only takes a few minutes.
You can download the Paytm app from the Google Play Store or the Apple App Store.
to access the application form. You may alternatively visit the bank’s official website to download the form.
The interest you earn on your FD depends on the frequency you select at the time of investment, which can be monthly, quarterly, or annually. The duration of the FD will be calculated and displayed to you when making the investment.
There is no penalty for early withdrawal of FD with Paytm. If you urgently need funds, you can easily withdraw from your FD account through simple steps without penalties. The principal amount and interest earned, less TDS, will get credited within seconds.
To open a fixed deposit with Paytm, you must first have an active Paytm Bank savings account. Once you have an active savings account, you can easily create a fixed deposit account by following these steps:
Step 1: Open the Paytm app on your smartphone.
Step 2: Navigate to the “Paytm Bank” option.
Step 3: Enter your password to access the Paytm Bank.
Step 4: Click on “Create FD”.
Step 5: Enter the amount you want to invest.
Step 6: Click on “Proceed” to complete the process.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
