Zerodha Launches Fixed Deposits on Coin App, Offers Up to 8% Annual Returns

Zerodha, India’s largest discount broker, has launched fixed deposits (FDs) on its Coin investment platform as of April 9, 2026. The feature allows users to compare FD rates across partner banks, book deposits digitally, and track invested amount, accrued interest, and maturity schedules — all within a single interface.

Zerodha Coin Platform Moves Beyond Mutual Funds into Fixed-Income Products

Coin was launched in April 2017 as a direct mutual fund platform. It has since expanded into insurance and the National Pension System (NPS), positioning itself as Zerodha’s hub for long-term, passive investments — distinct from Kite, the company’s active trading and stock investment app.

The addition of fixed deposits marks Zerodha’s first foray into fixed-income retail savings products on the Coin platform, aiming to capture household savings currently spread across multiple banks and financial institutions.

Zerodha’s consolidated revenue for FY25 declined 11.5% year-on-year to Rs 8,847 crore, while profit stood at Rs 4,237 crore during the same period. To know more about latest Indian startup news follow knowstartup

Zerodha Coin FD Rates: Up to 8% Per Annum From Partner Small Finance Banks

Zerodha is operating as a distributor for FD products offered by three partner small finance banks (SFBs) regulated by the Reserve Bank of India (RBI):

– Suryoday Small Finance Bank: up to 8.0% per annum

– Utkarsh Small Finance Bank: up to 8.0% per annum

– Unity Small Finance Bank: up to 8.0% per annum

Deposits up to Rs 5 lakh are insured under DICGC (Deposit Insurance and Credit Guarantee Corporation). Tenures range from 7 days to 60 months, with a minimum investment of Rs 1,000.

Premature withdrawal is permitted after seven days, with applicable penalties disclosed upfront. Senior citizens are eligible for higher interest rates, applied automatically based on PAN verification.

Digital FD Process Requires No Savings Account With Partner Bank

Users can open FDs through Coin without maintaining a savings account with the issuing bank. For a first investment with any partner bank, a one-time KYC is required, covering PAN verification, Aadhaar authentication, nominee details, and a video KYC to be completed within three days of payment.

Subsequent investments with the same bank skip the KYC step entirely, making the process significantly faster. Payout options include interest disbursement at maturity, monthly, or quarterly. Auto-renewal can be configured in advance.

Strategic Rationale: Retention, Cross-Sell, and Platform Stickiness

Analysts note that FD distribution typically earns thin backend commissions from partner banks and is unlikely to become a significant primary revenue driver. The strategic value for Zerodha lies elsewhere.

By consolidating equities, mutual funds, and FDs in a single interface, Zerodha addresses a key friction point for retail investors who currently hold deposits across multiple banks with varying rates and maturity schedules.

“By integrating FDs into Coin, Zerodha addresses a key friction point: fragmentation. Users often hold deposits across multiple banks, making tracking difficult. A unified interface improves convenience and keeps users within the platform,” said an analyst familiar with the company’s strategy.

Deeper engagement with conservative, fixed-income investors also creates an opportunity for Zerodha to cross-sell higher-margin products over time, increasing overall platform stickiness.

Moneycontrol earlier reported that Zerodha had invested in Blostem, a New Delhi-based startup that is powering the FD infrastructure on Coin.

What Zerodha’s Coin FD Launch Means for India’s Digital Investment Market

Zerodha’s entry into the FD space intensifies competition in a segment that is already attracting significant investor attention. Wealthtech startup Stable Money recently raised approximately $25 million in a funding round led by Peak XV Partners.

Smallcase and WintWealth — both backed by Zerodha’s Rainmatter fund — along with Flipkart-backed super.money, already offer FDs, though not as their core product. Zerodha’s scale and existing user base could accelerate adoption of digital FD investing among retail investors.

The broader trend reflects a shift among Indian fintech platforms toward comprehensive wealth management, combining market-linked and fixed-income instruments to capture a larger share of household savings as competition intensifies across the financial services sector.

Author

Sachin

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages...

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages KnowStartup's Digital Agency rankings of firms across multiple cities in India. You can reach him on Linkedin.

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