PhonePe’s new savings platform will allow millions of individuals to earn higher fixed deposit (FD)-like returns on idle money lying in their bank accounts. As such, over 175 million of the company’s users will be allowed to grow their savings by earning short-term FD-like returns with ease, while also seeing liquidity of a savings account.
According to Business Standard, the company is competing with rivals such as Alibaba-backed Paytm, Google Pay, and Amazon Pay, which are also eyeing the financial services market in India. Before Liquid Fund, PhonePe’s revealed ‘Tax Saving Funds’ in 2019, which provided a completely digital investment flow for its users. Liquid Fund is meant for users across India, including those from smaller towns and cities, who have never experienced solutions beyond savings accounts. With this, the customers can withdraw their money instantly from anywhere, without the need for them to maintain a minimum balance.
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