PayTM Fixed Deposit Scheme – Is it Safe to invest?
Recently PayTM has launched Fixed Deposit Schemes for its subscribers. The PayTM FD Scheme says it offers 8% interest rates. Most of us already using PayTM and keep some money in PayTM all the time. PayTM would automatically shift your money to FD Scheme. Hence, understanding about the PayTM Fixed deposit scheme would help you get the most out of it or stay away from such FD scheme. What are the features of PayTM Fixed Deposit Scheme? How to open PayTM Fixed Deposit Scheme? Is it safe to opt for PayTM Fixed Deposit Schemes?
About PayTM FD Scheme
Recently PayTM started offering fixed deposit schemes to its customers. As we all know that PayTM is also a payment bank, which is not allowed to provide services of conventional bank like accepting FD. Moreover, as per the guidelines issued by RBI, the aggregate balance of their customer’s account at the end of the day cannot exceed Rs 1 lakh. So, PayTM entered into partnership with IndusInd Bank Ltd. to open a fixed deposit account on your behalf if the amount in the account exceeds the limit. It is the most convenient, paper-free way of opening FD through mobile itself. Currently, it is accepting FD for 13 months at the interest rate of 8%.
Features of PayTM Fixed Deposits
The important features of PayTM FD are:
1) The maturity period of FD is 13 months.
2) The interest offered by PayTM FD is 8%.
3) The FD is renewed automatically on maturity.
4) If you wish to redeem before maturity, there is a facility of instant redemption without any penalty charges.
How to open PayTM Fixed Deposit Scheme?
If the balance of your PayTM account is less than Rs. 1 lakh, you cannot open a PayTM FD account. As soon as the balance of your PayTM account exceeds Rs. 1 lakh by the end of the day, it will automatically be sweeped out be PayTM from your savings account and is shown as an FD in your account. If your balance exceeds Rs. 1 Lakh, go to “BANK” option in your app and scroll down to find the FD option.
Less known facts about PayTM FD Scheme
Here are some less known / unknown facts about this FD Scheme
1) PayTM books the FD with the period (currently 13 months) in which its partnered bank provides the highest interest rates. Currently, it is 8% for deposits less than Rs. 1 crore. One thing is not clear is that it says 8% for 13 months means for 1 year it would be 7.4% only.
2) No interest is paid if the FD is redeemed within 7 days of its inception.
3) At the time of redemption, the principal amount along with interest earned will be paid to you after deducting the TDS.
4) On the date of auto-renewal, the new deposit amount will include principle amount plus interest earned minus the TDS, if any.
5) TDS is applicable as per the Income Tax guidelines. If the PAN is not provided, the TDS id deducted with higher rates.
6) If the FD is renewed and by the time the subscriber becomes a senior citizen, it will automatically be updated with the senior citizen scheme (higher interest rates).
How to close PayTM FD Scheme?
If you wish to close the PayTM FD scheme, here are the steps you can follow:
Go to PayTM App
Go to Bank option
Click on FD option
Your FD Schemes would be visible. You can click on closure of the FD scheme. You can get up to 6.85% interest rate per annum with zero penalty for foreclosure of your FD scheme.
Which is the quickest way to check your FD scheme details in PayTM?
One of the quickest way to check FD scheme is that you can view them in your Passbook itself.
Second option is to go to PayTM App —–> Bank —>FD Scheme and view the details.
PayTM Fixed Deposit Scheme – Is it Safe to invest?
Due to rapid development in information technology, tech-equipped mobile phones, mobile payments and banking trends are spreading fast and far and wide. As long as PayTM talked about, PayTM uses world-class security and encryption to keep your data safe and secured.
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But still, cyber crime is also spreading fast with the same speed. Recently, three people were remanded in India over an alleged plot to blackmail the founder of PayTM. The three allegedly threatened to leak the stolen personal data. The subscriber has to be very vigilant and alert to avoid becoming targets of any kind of cybercrime.
Conclusion: Many of the individuals from far-off and remote villages are not familiar of the basic banking facilities like bank accounts, FDs due to the absence of banks in their locality. But, now at least they can avail the facility of FD with good returns through their mobile only which will boost their savings and earnings potential. While it is the best way for simplified investments with assured returns but, also beware of the cyber-crime blooming these days. Since most of the banks are already offering mobile banking, I would prefer the FDs offered by banks instead of PayTM owing to recent security incidents.
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PayTM Fixed Deposit Scheme – Is it Safe to invest