Zerodha introduces FD investment on Coin app

By Aarav Garg

Zerodha’s investment platform, Coin, has added fixed deposits investment to its list of services. This new feature will allow users to book FDs digitally without needing a separate savings account with partner banks.

This has come after a partnership with Blostem, a B2B banking infrastructure startup. Coin can offer competitive interest rates, up to 8.15% per annum, via select small finance banks like Suryoday Small Finance Bank and Utkarsh Small Finance Bank. All deposits are insured up to ₹5 lakh per depositor, per bank, by the Deposit Insurance and Credit Guarantee Corporation, for user safety and convenience.

There is a demand for stable, guaranteed returns in the Indian investment market, which Zerodha Coin aims to meet. Small Finance Banks (SFBs) currently lead with interest rates up to 8.60% for general citizens, significantly higher than the 6.40-6.75% range often seen with public sector banks. Here, Zerodha’s partnership with SFBs might enable it to provide attractive rates on its platform, aligning with customer expectations for better yields in fixed-income products.

While the Indian FinTech market is projected to reach USD 109.06 billion by 2031, Zerodha reportedly had a slowdown in trading activity in early 2025. The addition of FDs diversifies its revenue sources and strengthens its passive investment proposition on Coin.

Blostem is a B2B banking infrastructure platform that powers Zerodha’s fixed deposit offering. Its technology helps FinTech companies offer digital banking products, including FDs, through one unified API, so they do not need to build many direct bank integrations. Blostem has partnered with 10 banks and NBFCs. Rainmatter, Zerodha’s investment arm, also acquired a stake in Blostem, recently.