Axis Bank has launched a new feature on its mobile app, allowing customers to open Fixed Deposits (FDs) using funds from non-Axis Bank accounts. The bank is leveraging the Account Aggregator ecosystem to provide a seamless digital experience for users.
Seamless FD Booking with UPI and Net Banking
Customers with valid Know Your Customer (KYC) details can now book FDs using UPI or Net Banking without needing to transfer funds to an Axis Bank account first. The FD booking process will be completed once the payment is successfully processed and funds are received through the payment gateway.
This new feature eliminates traditional barriers such as adding a payee and transferring funds before opening an FD, making the process quicker and more convenient.
A Step Towards Digital Banking Transformation
Sameer Shetty, President & Head of Digital Business & Transformation at Axis Bank, highlighted the bank’s commitment to open banking and digital-first solutions. He stated, “This feature removes extra steps in FD creation, offering a hassle-free experience. We see this as a transformational move in banking.”
The bank also emphasized the role of UPI and the Account Aggregator framework in making digital investments simpler and more accessible.
Understanding Fixed Deposits (FDs)
A Fixed Deposit (FD) is a secure investment option where individuals deposit a lump sum with a bank for a fixed tenure at a predetermined interest rate. Compared to regular savings accounts, FDs offer higher interest rates, making them a preferred choice for risk-averse investors.
Upon maturity, the depositor receives the principal amount along with the accrued interest.
Who Should Consider Investing in FDs?
FDs are ideal for:
- Individuals seeking stable and guaranteed returns without market risks.
- People planning short- and long-term financial goals with flexible tenures.
- Those looking for emergency funds that can be withdrawn prematurely (with a penalty).
- Senior citizens who want higher interest rates for a steady income.
With this new feature, Axis Bank aims to make FD investments more accessible, reinforcing its focus on digital banking innovation.