Now you can book fixed deposits (FDs) digitally without having to open a bank account on a rate of interest higher than many of the regular banks. Google Pay users can take the benefits of the interest rates offered by Equitas Small Finance Bank (SFB) by booking FDs on the payments platform in under two minutes without having to open a bank account.  

Equitas SFB promises a return of 6.35% for an FD of one year. On maturity, principal and interest of the FD go directly to the Google Pay user’s existing bank account - which could be in any bank in India.  

By providing FDs through Google Pay, Equitas becomes a catalyst in the convergence of increasing income, evolving access and affordability of financial services.  

From the Equitas Bank Spot on the Google Pay platform, users can track their deposits, add new ones and place an order for premature withdrawals.

In case, a user wants to prematurely withdraw the deposit, the proceeds will reach their bank account as quickly as the same day, Equitas Bank said. 

Initially, the Equitas fixed deposit facility will be available for Google Pay users who are accessing the app from Android.

“We have always believed that today’s banking has evolved beyond the brick mortar setup and the need of the hour is for banking products that are simple to use, easy to distribute, and available digitally at your fingertips. This Spot FD is a step in that direction,” said Equitas SFB senior president and country head Murali Vaidyanathan.

So are the brick and mortar banks coming under competitive pressure? This may not immediately impact the deposit accretion in traditional banks, but it will certainly challenge the way banks contract FDs which involve opening a savings account and then a fixed deposit.

At the end of the first quarter, State Bank of India had the highest share of FDs at 23.95%, followed by HDFC Bank at 8.66%, Punjab National Bank at 7.06%, Canara Bank at 6.58% and ICICI Bank at 5.96%. 

Equitas has tied up with fintech infrastructure provider Setu to make this process work. The offering by integrating the SFB’s own Spot with the Google Pay Spot Platform was made possible by connecting APIs (application programming interface) built by Setu for Equitas Bank.

With this move, Equitas has extended its products portfolio to include FDs via fintech partners. On the digital savings account, Equitas has launched two Neobanks, with one of them being the country’s fastest growing neobank, the SFB said in an official release. 

Here’s how to book bank FD using Google Pay in 5 steps:

1. Open your Google Pay app and scroll down to ‘Businesses and bills’

2. Click on the ‘Equitas SFB’ logo / Search for Equitas to enter the Equitas Bank Spot on Google Pay

3. Select an amount and tenure for the FD via the Equitas Bank Spot

4. Provide your personal and KYC details (PAN number & Aadhaar number) to Equitas Bank

5. Complete the payment using Google Pay UPI.