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.
|Interest Rate||2.75% – 5.5%|
|Tenure||7 days – 1-year|
|Maximum Deposit||No upper limit|
The interest on fixed deposits can be calculated via the simple interest method and the compound interest method.
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
For example, if you have invested Rs.1 lakh for 10 years at 7% p.a. interest rate, then,
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.
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)
For example, if you invest Rs.1,00,000 for 10 years at 5% p.a. compounded quarterly, then,
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.
Here are some of the factors that can have an impact on Paytm Bank FD interest rate:
Interest rates on FDs vary based on tenure. Long-term FDs generally offer higher interest rates than short-term FDs.
India’s monetary and fiscal policies led by the prevailing economic conditions can significantly impact the fixed deposit interest rates.
Senior citizens with a fixed deposit in Paytm can earn a higher FD interest rate than the standard rate.
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|
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.
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%|
Here are some of the features and benefits of Paytm FD:
Paytm offers three types of fixed deposit schemes designed to serve different purposes. These schemes are:
Once you have an active savings account with Paytm, follow the steps below to open a Paytm Bank FD account:
To open a Paytm Bank FD account and complete the required KYC procedure, you may need the following documents –
You must meet one of the following eligibility criteria to open a Paytm Bank FD:
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
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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