Is Paytm Fixed Deposit Safe?

• Is Paytm FD Safe?
• What is a Fixed Deposit?
• About Paytm FD
• Features of Paytm Fixed Deposits
• Benefits of Fixed Deposit
• Documents Required for Fixed Deposit
• How to open Paytm Payments Bank FD
• Taxation on Paytm FD

Is Paytm Fixed Deposit (FD) Safe?

Yes, Paytm FD is safe and secure. If you are an existing customer of Paytm Payments Bank, then you can get a fixed deposit (FD) account. Although it’s difficult to decide which bank to go with because there are so many in the country that provides the option of creating fixed deposits. Paytm Payments Bank, which has Induslnd as a banking partner, also allows users to open fixed deposits with a variety of perks.

Details of Paytm Payments Bank Fixed Deposit

What is a Fixed Deposit?

Fixed deposit, often known as ‘term deposit’ or ‘time deposit,’ is a type of investment option offered by banks and non-banking financial institutions (NBFC). It lets consumers deposit a lump sum amount for a specific time period with the financial institution, making it the safest investment option among many others. In addition, FD offers a variety of other features to its users, including:

Know About Paytm Fixed Deposit (FD)

If you are a Paytm Payments Bank Limited (PPBL) user, you can open a fixed deposit (FD) account to maximize your savings. Paytm Payments Bank has introduced this scheme in collaboration with IndusInd Bank, and the interest rate charged will be determined by the latter. In your Paytm passbook, you’ll see the details of your Paytm Payments Bank Fixed Deposit.

Features of Paytm Fixed Deposits

• Before you make a fixed deposit, you should decide on the amount you wish to deposit. Any additional funds must be deposited in a separate account.
• In comparison to most investment options, fixed deposit holders receive a greater rate of interest.
• The market has no effect on the returns on deposits.
• Money cannot be withdrawn prior to the maturity date. The penalty must be paid in the event of an emergency withdrawal or a willful amount withdrawal.
• Fixed deposits provide a reliable income.
• The depositor can earn interest on his or her money on a monthly, quarterly, annual, or after-the-fact basis.
• As an investment alternative, fixed deposits have limited liquidity.
• A fixed deposit can be renewed.

Benefits of Fixed Deposit

• FDs are considered to be one of the safest investment alternatives accessible in the market when compared to other investment options. Throughout the pre-determined tenure, this investment option provides a rate of interest that remains constant notwithstanding market volatility.
• The FD user receives a guaranteed rate of interest on the fixed amount deposited. Fixed deposit interest calculators are available on banks’ websites, allowing customers to calculate the amount of interest they will earn at maturity.
• With a savings account, you can quickly invest in fixed deposits by visiting a bank branch or going online. After the FD matures, you have the option of renewing it or having the money credited to your account.
• If you want to reinvest your FD’s matured amount, you’ll be eligible for compound interest. Compound interest refers to the fact that you will be paid interest on both the principal and the interest earned.
• In India, a large number of banks provide tax-saving fixed deposit options to their customers, lowering the amount of tax that must be paid.

Opening a Fixed Deposit Account with Paytm

It’s as simple as it sounds to open a Paytm savings account. To create an account, simply launch the Paytm mobile app, select ‘Paytm Bank,’ and follow the on-screen instructions. Your account will be created in a matter of minutes.

You might be wondering why you should open a Paytm fixed deposit. Here’s the reason:

• Paytm pays 5.5 percent on normal fixed deposits and 6% on senior citizen fixed deposits, which is more than many other banks in the country.
• There are no penalties for taking money out of a fixed deposit before the maturity date.
• Paytm allows you to withdraw a portion of your fixed deposit.
• To open a fixed deposit, you only need Rs 100.
• When the amount in your Paytm savings account exceeds a particular limit determined by the user, Paytm offers the option of auto-creating fixed deposits.
• Paytm’s fixed deposits can be created and/or dissolved at any time, from any location, with just a single click.

Documents Required for Fixed Deposit

You must submit the following documentation to open a fixed deposit with a bank:

• PAN card, passport, voter ID card, or any other government-issued identification card photocopy.
• The application form that is completely filled out and signed, as well as a passport-size photograph
• Proof of residence, such as electricity bills, a phone bill, or a photocopy of a passport
• Verification of original documents

How to open Paytm Payments Bank FD

• On your smartphone, open the Paytm app.
• Select ‘All Services’ from the drop-down menu.
• Select ‘Paytm Bank’ from the drop-down menu.
• It’s important to understand that you’ll need to open a Paytm savings account.
• After that, select ‘Open Fixed Deposit Account.’
• You’ll be required to enter a four-digit passcode.
• To activate your Paytm Payments Bank FD program, simply follow the on-screen instructions.
• Once the FD account is activated, you will receive an email confirmation.

Taxation on Paytm FD

• If applicable, TDS (Tax Deducted at Source) will be deducted from the interest earned according to the Income Tax laws.
• If you fail to provide your PAN card to the lender, TDS at a higher rate will be deducted under Section 26AA of the Income Tax Act, 1961.