Zerodha to launch Fixed Deposits (FDs)

The focus keyword Zerodha fixed deposits marks a significant step in the evolution of India’s retail investment ecosystem. Zerodha, known primarily as a brokerage firm, has expanded its offerings to include bank fixed deposits (FDs) through its investment platform Coin. This move opens up a simpler route for retail investors to park funds in FDs via a familiar platform.

What’s new: Zerodha and FDs

Zerodha now allows users to invest in FDs via the Coin platform in partnership with certain banks and NBFCs.
Key points:

• Anyone with an active Zerodha trading/demat account can invest in FDs via Coin.
• The minimum investment amount is as low as ₹1,000 for partner small finance banks.
• Banks currently listed include Suryoday Small Finance Bank and Unity Small Finance Bank.
• The process is digital: select FD option, choose bank & tenure, complete video KYC, invest.
• Zerodha emphasises “zero platform fee” and competitive rates from partner banks.

Why this matters

• Broader investment menu: Zerodha has traditionally been a brokerage for equities, derivatives and mutual funds. Offering FDs adds a fixed-income, low-risk option.
• Increased accessibility: Users don’t need to switch apps or go through multiple platforms – they can access FDs via the same account.
• Trend-towards aggregator models: With rising interest in low-risk, stable returns (as noted by Zerodha itself: FDs remain a huge part of Indian investor assets).
• Competitive advantage: By tying up with partner banks and offering zero platform fees, Zerodha may attract fixed-deposit-seeking retail users who might otherwise use only banks.

How to invest: Step-by-Step

1. Log in to your Coin account.
2. Navigate to the “Fixed Deposits” section.
3. Choose your preferred bank from the available list (e.g., Suryoday SFB, Unity SFB).
4. Select an investment amount and tenure. The minimum is ₹1,000.
5. Complete payment, video KYC (Aadhaar/PAN-linked), bank account verification.
6. Track your FD investment within the Coin platform (under “My Transactions” or similar).

Important disclaimers & things to watch

• These FDs are not pledgable for trading margins on Zerodha’s platform. Zerodha explicitly states they do not accept FDs as collateral for trading margins
• FDs via Coin are created through partner banks; they operate separately from your Zerodha trading account, though viewable via Coin.
• The returns depend on the partner banks’ interest rates — they may vary by bank and tenure.
• You must complete the required KYC/verification promptly (video KYC) for your FD to be activated.
• Ensure you understand withdrawal/partial withdrawal rules with the bank offering the FD.
• As always, check the deposit insurance-status (e.g., are deposits up to ₹5 lakh covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) etc.) though that depends on the bank.

Background: Why now?

Zerodha has pointed out that fixed deposits remain a dominant part of Indian retail investment. In data published in 2024, they noted that in the nine months from April 2023 to January 2024, around ₹17.55 lakh crore was invested in FDs, compared to much smaller sums in mutual funds in the same period. Business Today

This signals a strong demand for lower-risk, fixed-return products among Indian investors. By adding FDs to its platform, Zerodha is aligning with investor preference and broadening its product suite.

What it means for you (the investor)

• If you already use Zerodha and Coin, you can now consider FDs as part of your investment mix without opening a separate bank FD manually.
• It may make sense for the portion of your portfolio you want to allocate to fixed/low-risk returns.
• But do compare: interest rates from partner banks vs best independent FD rates in the market; fees are nil on platform but bank terms matter.
• Also check if you might want liquidity/features (e.g., early withdrawal) which sometimes come at a cost in FDs.
• Ensure your KYC is up-to-date with Zerodha and you are comfortable with the digital process.

Conclusion

The launch of Zerodha fixed deposits via the Coin platform is a welcome expansion of investment options for retail investors in India. It provides a seamless bridge between trading/investing platforms and traditional bank-deposit products. While it doesn’t upend the FD market, it makes FDs more accessible via a familiar interface. As always, investors should compare rates, understand bank-terms, and align this option with their investment goals.