UPI has changed the way we pay and receive money. It is quick, easy and safe. Most people know UPI works with savings accounts. But what about businesses that use current accounts? Many business owners ask if UPI can be linked with a current account. The answer is yes.
For business owners, having a current account UPI is very useful. It helps them collect payments and manage transactions without relying only on card machines or cash.
Read on to explore more about how the current account UPI works, why it is useful for businesses and what limits apply.
What is UPI
UPI stands for Unified Payments Interface. It is a system that lets you transfer money instantly between bank accounts. All you need is a mobile number or UPI ID. You don’t have to enter account numbers or IFSC codes every time. It works 24/7, including weekends and holidays. You can use it to send or receive money, pay bills or even make purchases online and offline.
UPI is regulated by the National Payments Corporation of India (NPCI), which ensures security and standardisation. It supports multiple banks on a single app, making it easy for both individuals and businesses to manage transactions in one place.
Can UPI Be Linked to a Current Account
Yes, UPI can be linked to a current account. Just like a savings account, a business current account can also be connected with UPI apps. This lets you send and receive payments directly from your current account.
UPI is very useful for small and medium businesses that handle frequent, smaller payments. Unlike Point of Sale (POS) machines where you wait for settlement, UPI credits money instantly. This keeps cash flow smooth and improves liquidity.
Why Businesses Should Use Current Account UPI
If you run a business, having UPI linked to your current account offers many advantages. Here are some reasons why:
Instant payments: Customers can pay you in seconds with no delays
Low cost: Unlike card machines, UPI does not come with high transaction charges
Cashless convenience: Payments go straight to your bank account
Better tracking: All UPI payments reflect in your account statement, making it easy to track income
Customer preference: UPI is now the default way to pay for many customers
How to Set Up UPI for a Current Account
Setting up UPI for your current account is simple. Here are the steps:
Download a UPI app of your choice
Register with your mobile number linked to your current account
Select your bank and verify using OTP
Create your UPI PIN
Start making and receiving payments from your current account
It takes only a few minutes to get started. Once linked, you can use it just like you do with a savings account.
Banks may ask for extra KYC before linking UPI to a current account. Keep your mobile number updated since OTPs are needed for setup.
Benefits of Using UPI with a Current Account
Here’s why using UPI with a current account is beneficial:
Ease of use: Payments can be made with just a UPI ID or QR code
Speed: Transactions happen instantly, even on weekends and holidays
Safety: Every transaction is protected by your UPI PIN
Business efficiency: Faster collections mean better cash flow for your business
Simpler reconciliation: All payments reflect in one bank statement, reducing errors and saving time
UPI Transaction Limits for Current Accounts
UPI comes with set limits that can differ by bank. For most users, the daily limit is up to ₹1 lakh. Some transactions, like insurance, capital markets or inward remittances allow up to ₹2 lakh. For IPOs and RBI’s Retail Direct Scheme, the limit goes up to ₹5 lakh. Many banks have extended these higher limits to the current accounts of verified businesses, giving them more room for larger payments.
UPI Apps Without Bank Account
To use UPI, you must link a bank account. However, prepaid wallets and some apps may allow limited transactions. But they are not the same as UPI.
So, if you come across claims of UPI apps without bank account, know that they are either wallets or payment gateways.
Key Points to Remember About UPI for Current Account
You can link UPI with a current account
It is very useful for businesses to collect customer payments
Limits exist, but some banks allow higher limits for current accounts
Claims of UPI apps without bank account can be misleading, as UPI requires a linked bank account
UPI is no longer limited to savings accounts. Businesses with current accounts can also enjoy their benefits. With quick, low-cost and secure payments, it is one of the best ways to manage transactions.
If you are a business owner, enabling UPI on your current account not only makes collections easier but also positions your business as digital-first. With more customers expecting QR codes and UPI IDs, it’s no longer optional, it’s essential.
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FAQs on UPI for Current Account
Can UPI be used for a current account?
Yes, UPI can be linked to current accounts. It helps businesses collect and send payments directly from their account.
Is there a UPI limit for current accounts?
Yes, most banks set a daily limit of ₹1 lakh. Some banks may allow up to ₹2 lakh or higher for current accounts.
Can UPI replace POS machines for businesses?
For small and medium transactions, yes. UPI is faster and cheaper. But for very large-ticket sales, POS or bank transfers may still be required.
No, the UPI PIN and the ATM PIN are not the same thing. The ATM PIN is connected to your debit card. You use it for things like taking out cash from an ATM, checking your balance and making payments with your card. The UPI PIN is used to confirm transactions on your mobile payment apps like PhonePe Google Pay, Paytm and BHIM.
Both the UPI PIN and the ATM PIN help keep your money safe. They work in different ways and in different places. The UPI system is a way to send money instantly. It was made by the NPCI. Is regulated by the RBI. This means you can send money to someone Bank account right away.
If you know the difference between the ATM PIN and the UPI PIN, you will not get confused. You can do your transactions safely. You will be less likely to get cheated.
What is an ATM PIN?
The ATM PIN is short, for Automated Teller Machine Personal Identification Number. It is a code that is 4 or 6 digits long. The bank uses this code to make sure that the person using the debit card is really the owner of the card.
The ATM PIN is connected to your debit card. So, you need to enter it when you use your card at an ATM. You also need to enter it when you use your card to make a payment at a store.
For example, when you want to take out cash from an ATM you put your debit card in the machine. Enter your ATM PIN. The bank checks the PIN. Then lets you take out the cash. It is the same when you use your debit card to buy something at a store. The machine will ask for your ATM PIN before it says the payment is okay.
How an ATM PIN Works in Practice
Here’s how it usually works:
You insert or tap your debit card at an ATM or POS machine.
The machine asks you to enter your ATM PIN.
Your bank verifies the PIN.
If the PIN is correct, the transaction is approved.
In simple words, your ATM PIN acts like a key for your debit card. Without it, most cash withdrawals and debit card transactions cannot be completed.
What is a UPI PIN?
A UPI PIN is like a code. It means Unified Payments Interface Personal Identification Number. You create it when you start using UPI on a payment app. It is usually 4 or 6 numbers. Some people call a UPI PIN an MPIN or Mobile PIN. You use it to approve transactions on your phone and need to enter your UPI PIN to send money. It is also needed when you are paying a merchant. You need it to complete a UPI transaction with your UPI PIN. The NPCI says UPI is a system for money transfers, between bank accounts using your mobile phone. It uses mobile-based payment infrastructure.
How a UPI PIN Works in Practice
Suppose you are paying your friend back for dinner through Google Pay or scanning a QR code at a tea stall. Once you enter the amount and confirm the payment, the app asks for your UPI PIN.
After you enter the correct UPI PIN:
Your bank verifies the request
The money is debited from your bank account
The receiver gets the payment almost instantly
Unlike an ATM PIN, a UPI PIN is not used for withdrawing cash from a regular ATM. It is meant for digital and app-based payments.
Is UPI PIN and ATM PIN the Same?
No, UPI PIN and ATM PIN are not the same. They may look similar because both are secret numeric codes, but they are used for different purposes. An ATM PIN is connected to your debit card and is used mainly for ATM withdrawals, balance enquiries and card-based payments. A UPI PIN is connected to your UPI-enabled bank account on a mobile app and is used to approve digital payments.
Think of it this way: your ATM PIN protects your debit card transactions, while your UPI PIN protects your mobile payment transactions. Both help verify your identity before money moves out of your account, but one works in a card-based setup and the other works in a mobile-first digital payment setup.
For example, if you withdraw ₹2,000 from an ATM, you use your ATM PIN. But if you send ₹2,000 to a friend using PhonePe or Google Pay, you use your UPI PIN.
Why ATM PIN and UPI PIN Are Important
Both ATM PIN and UPI PIN are important for banking security. They help make sure that only the authorised user can complete a transaction.
The RBI has repeatedly advised users not to share sensitive banking details such as ATM/card details, passwords, PINs, OTPs, CVV and UPI PINs with anyone. It also advises users to avoid financial transactions on public or open Wi-Fi networks.
Both PINs matter because they:
Verify your identity before a transaction is approved
Protect your bank account from unauthorised access
Add a security layer for both offline and online payments
Reduce misuse if your card or phone falls into the wrong hands
Build confidence while using ATMs, debit cards and UPI apps
As a simple rule, treat both PINs like your house key. You may use them in different places, but both protect something valuable.
Key Differences Between UPI PIN and ATM PIN
While both PINs protect your money, they differ in where they are used, how they are created and what type of transactions they approve.
Feature
ATM PIN
UPI PIN
Use
Used for debit card transactions such as ATM withdrawals, balance checks and card payments
Used for UPI app transactions such as money transfers, QR payments and online payments
Linked to
Debit card
UPI-linked bank account on a mobile app
Who sets it
Usually issued or generated through the bank, ATM or banking channels
Created by you while registering for UPI on a payment app
Security scope
Protects physical debit card-based transactions
Protects app-based and mobile payment transactions
Transaction type
Mostly offline and card-based transactions, such as ATMs and POS machines; may also support debit card online payments
Primarily online, mobile and QR-based transactions
How to change
Through an ATM, net banking, mobile banking or bank customer service
Directly through your UPI app using debit card details or other bank-supported verification methods
Example
Withdrawing cash from an ATM
Paying a shopkeeper by scanning a QR code
UPI PINs are designed for digital payments, while ATM PINs are designed for debit card access and card-based banking.
How to Set or Change Your ATM PIN and UPI PIN
How to Set or Change Your ATM PIN
You can usually set or change your ATM PIN through:
ATM machine: Insert your debit card, choose the PIN generation or change PIN option and follow the instructions.
Mobile banking app: Some banks allow debit card PIN generation from the card section of their mobile app.
Net banking: Log in to your bank account online and look for debit card services.
Bank branch or customer support: Some banks may help you regenerate your PIN through official banking channels.
Keep your registered mobile number active because banks may send an OTP for verification.
How to Set or Change Your UPI PIN
You can usually set or change your UPI PIN through your preferred UPI app:
Open your UPI app and go to the bank account section.
Select the account for which you want to set or reset the UPI PIN.
Choose Set UPI PIN, Change UPI PIN or Forgot UPI PIN.
Enter the required debit card details or follow the bank-approved verification method.
Verify using OTP or other required authentication.
Create your new UPI PIN.
Some platforms and banks may support newer verification methods for UPI PIN setup or reset, but availability can vary depending on the bank and app.
Steps to Stay Safe While Using PINs
PIN safety is one of the simplest ways to protect your bank account. Here are some practical personal finance tips:
1. Never Share Your PIN
Do not share your ATM PIN, UPI PIN, OTP, CVV or password with anyone. Banks, RBI, NPCI and legitimate payment apps do not ask for your PIN over calls, messages or emails.
2. Avoid Easy-to-Guess Numbers
Do not use simple combinations such as:
1234
0000
Your birth year
Your phone number
Repeated digits such as 1111
Choose a PIN that is easy for you to remember but difficult for others to guess.
3. Keep ATM PIN and UPI PIN Different
Using the same number for both may feel convenient, but it increases risk. If one PIN is compromised, the other may also become vulnerable.
4. Change PINs Periodically
Update your ATM PIN and UPI PIN from time to time, especially if:
You used your card at an unfamiliar ATM
You suspect someone saw your PIN
You lost your phone or debit card
You received suspicious banking messages
5. Use Only Trusted Apps and Machines
Enter your UPI PIN only on trusted payment apps. Similarly, use ATMs in safe locations and check for suspicious devices attached to the card slot or keypad.
6. Do Not Enter UPI PIN to Receive Money
You do not need to enter your UPI PIN to receive money. If someone asks you to enter your UPI PIN to “accept” money, it could be a scam.
7. Turn On Transaction Alerts
Enable SMS, email or app notifications for your bank account. This helps you spot unauthorised transactions quickly.
8. Avoid Public Wi-Fi for Banking
Avoid making UPI or banking transactions on public Wi-Fi. RBI also advises users to avoid financial transactions through public, open or free Wi-Fi networks.
9. Lock Your Phone and Payment Apps
Use a screen lock, fingerprint, face unlock or app lock. This adds another layer of protection if your phone is lost or stolen.
10. Report Suspicious Activity Immediately
If you notice an unknown ATM withdrawal, UPI debit or card payment, contact your bank immediately and block the card or account access if required.
Following these steps can help keep your money safer across both offline and online banking channels.
The Bottom Line
So, is UPI PIN and ATM PIN the same? No. An ATM PIN is used for debit card-based transactions such as ATM withdrawals and card payments. A UPI PIN is used for mobile-based digital payments through UPI apps.
Both PINs play an important role in protecting your money. The safer approach is to keep them different, never share them and use them only on trusted platforms.
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FAQs on UPI PIN vs ATM PIN
1. Are my UPI PIN and ATM PIN the same?
No, they are different. An ATM PIN is used for debit card-based transactions such as ATM withdrawals and card payments. A UPI PIN is used to approve payments through UPI apps.
2. Can we set UPI PIN without ATM PIN?
In many cases, you need your debit card details to set or reset your UPI PIN. Some banks and apps may support alternate verification methods, but availability can vary. Always follow the process shown in your official UPI app.
3. What should I do if I forget my UPI PIN?
You can reset it from your UPI app. Go to your linked bank account, select Forgot UPI PIN or Reset UPI PIN, verify your details and create a new PIN.
4. Can I use the same number for ATM PIN and UPI PIN?
It is not recommended. Using different PINs improves banking security and reduces the impact if one PIN is compromised.
5. Do UPI PINs and ATM PINs serve the same purpose?
They serve a similar security purpose, but in different ways. Both verify your identity before a transaction, but an ATM PIN is used for debit card transactions, while a UPI PIN is used for mobile-based UPI payments.
6. What should I do if I suspect fraudulent activity involving my UPI or ATM PIN?
Immediately contact your bank, block your debit card if needed, change your PINs and report the suspicious transaction through official banking channels. Also check your recent transactions and enable alerts if they are not already active.
7. Is it safe to use the same number for UPI PIN and ATM PIN?
No, it is safer to keep them different. If one PIN gets exposed, having a separate PIN for the other payment method can help reduce risk.
UPI has made payments fast and simple. But like any system, errors can happen. You might send money to the wrong account, face a failed debit or not receive a refund on time. That’s where the UPI dispute redressal mechanism comes in. It helps users raise complaints, track them and get quick solutions.
Read on to understand how the UPI dispute redressal mechanism works and the key timelines. You will also know your rights and the simple steps to follow if your money gets stuck.
Common Reasons for a UPI Wrong Transaction Complaint
Most disputes occur because of:
Wrong UPI ID entry while sending money
Delays in settlement due to technical errors
Double debits during failed transactions
Non-refund of failed or pending payments
Payments stuck during peak hours due to server congestion
Merchant not delivering goods or services after successful payment
These are common issues that almost every user may face at some point. The good news is that there is a clear UPI dispute redressal mechanism to fix them.
Role of NPCI in the Dispute Redressal Process
The National Payments Corporation of India (NPCI) runs the UPI platform and ensures safe and seamless digital payments across the country. To handle issues it has set up ‘UPI Help’, also known as the NPCI dispute redressal mechanism. This is the official UPI dispute redressal mechanism. It tracks every complaint until closure. NPCI also studies dispute data to improve efficiency and reduce repeat problems.
This platform connects banks and payment service providers. They can log complaints, track updates and resolve them within fixed timelines. In short, NPCI makes sure your issue is not ignored. Banks must act on it and keep you informed. This makes the process simple and accountable.
The UPI Dispute Redressal Mechanism
The UPI dispute redressal mechanism follows a step-by-step structure:
First level: You raise a complaint with your UPI app or bank
Second level: If not resolved, it goes to the bank that manages the receiver’s account
Third level: If both banks cannot close the case, NPCI steps in through the official NPCI redressal platform
Final escalation: If NPCI is unable to resolve, you can approach the RBI Ombudsman under the Digital Transactions Scheme
This layered system ensures that there is a chain of responsibility. Your issue is reviewed at multiple levels before closure.
Why the UPI Dispute Redressal Mechanism Matters
Without a formal mechanism, users would be left waiting endlessly for refunds. With the system in place, there are clear benefits:
Transparency in how complaints are handled
Defined timelines for banks and apps
Accountability for all parties involved
Protection for users in case of failed or wrong payments
Same process across all UPI apps so it stays fair for everyone
Builds trust and supports India’s move towards a cashless economy
How to File a UPI Wrong Transaction Complaint
Here’s how you can raise a complaint if your money is stuck or sent to the wrong account:
Open your UPI app and check the transaction status under ‘History’
If the status shows failed but money is debited, tap ‘Raise Complaint’
Enter details of the UPI wrong transaction complaint and submit
Your bank will review and respond, usually within 3 working days
If the issue is not fixed, escalate it to NPCI through their grievance portal
This process ensures that your complaint is properly recorded and tracked. Also, always keep screenshots and transaction IDs handy. Banks may ask for proof during resolution
Timelines for Resolution
As per the RBI and NPCI dispute redressal mechanism rules:
Failed transactions should be reversed within T+1 working day (transaction day plus one)
In most cases, refunds reflect in your account within 3 to 5 working days, but timelines may vary by bank
Complaints must be resolved within 30 days from the date of issue raised
If not resolved within this period, you can approach the RBI Ombudsman for Digital Transactions
If the receiver refuses to return wrongly transferred funds, legal steps may be required. This is because banks cannot debit accounts without consent
These timelines make the NPCI redressal process structured and time-bound. They also give users a clear idea of when to expect resolution.
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FAQs
How do I report a wrong transaction?
You can report it directly on your UPI app under ‘Transaction History’. Select the payment, choose ‘Raise Complaint’, and submit. If not resolved, escalate to your bank, then to NPCI and finally to RBI Ombudsman if needed.
How can I reverse money sent to a wrong account?
If you enter a wrong UPI ID, raise a UPI wrong transaction complaint on your app right away. The bank will try to recover funds, but refunds need the receiver’s consent. This is why it’s always best to double-check the UPI ID before paying.
What if my complaint is closed but the issue is not resolved?
In that case, you can reopen the complaint through your UPI app or escalate directly to NPCI. If the response is still unsatisfactory, you can file a grievance with the RBI Ombudsman.
In digital banking, PINs protect your money. But many people get confused by the different types of PINs. A common question is – ‘is MPIN and UPI PIN same?’ At first, they look alike. Both are 4 or 6-digit codes you must enter to approve payments. But they are not the same. They may sound similar, but they work in different ways. Each one is meant for a different purpose.
Keep reading to know where each PIN is used and the difference between UPI PIN and MPIN. You will also see why it’s important not to mix them up. By the end, you’ll know exactly which PIN to use when.
What is an MPIN?
MPIN stands for Mobile Personal Identification Number. It works like a password for your bank’s mobile app. Banks provide or allow you to set an MPIN when you start using mobile banking.
Key points about MPIN:
Used only for mobile banking apps from banks
Need to log in and approve payments inside the mobile app
Usually 4 or 6 digits long
Issued and managed by the bank
MPIN is part of RBI’s mobile banking security system. It makes sure no one can access your account without proper authentication, even if they have your phone.
What is a UPI PIN?
A UPI PIN is a code you create while setting up your UPI app. It is used only for UPI payments and not for your bank’s mobile app. Without entering this PIN, your UPI payment will not go through.
Key points about UPI PIN:
Works only on UPI apps like PhonePe, Google Pay or BHIM
Needed every time you send money through UPI
Can be created, changed or reset within the UPI app
Separate from your bank’s mobile app
Your UPI PIN links directly to your debit card and bank account. When you set it up, the app verifies your card details before letting you create the PIN.
Is MPIN and UPI PIN Same?
No, there is a difference between MPIN and UPI PIN. Both are security codes, but they work in different places. MPIN is only for bank mobile apps. The UPI PIN is only for UPI apps. If you accidentally mix them, it can lead to failed transactions or security problems. That’s why banks keep them separate.
Difference Between UPI PIN and MPIN
Here’s how they differ:
Factor
MPIN
UPI PIN
Platform
Secures bank mobile apps
Secures UPI apps
Setup
Issued by banks
Created in UPI apps
Usage
Used to log in and approve payments in mobile banking
Used to send money via UPI
Scope
Does not work in UPI apps
Does not work in mobile banking apps
Expiry
Some banks ask for a reset after long periods of inactivity
Stays valid until you reset it yourself
Why Both PINs are Important?
Both MPIN and UPI PIN protect your money.
MPIN keeps your mobile banking app secure
UPI PIN blocks unauthorised UPI payments even if someone has your phone
Together, they create double protection. Even if one system fails, the other still guards your account.
Common Mistakes People Make
Many people wonder is MPIN and UPI PIN same, but that’s only one part of the confusion. It often leads to other common mistakes too, like:
Entering MPIN in a UPI app or UPI PIN in a mobile banking app
Thinking ATM PIN, MPIN and UPI PIN are the same
Using the same digits for all PINs
Writing PINs on paper or saving them in phone notes
Sharing PINs with others for quick help during payments
Setting very easy numbers like 1234 or your date of birth, making it simple to guess
Avoiding these mistakes keeps your banking experience smooth and secure.
How to Set and Reset These PINs?
Here is how you can set or reset them:
For MPIN: You can easily set it while activating mobile banking. In case you forget your MPIN, reset it through your bank’s app, net banking or branch. An MPIN reset may sometimes need a branch visit or OTP verification.
For UPI PIN: Youcreate it when you first link your account in a UPI app. If you forget your UPI PIN, you can reset it in the UPI app itself. All you have to do is verify your debit card details. Most UPI apps allow self-reset.
Safety Tips for PINs
Never share your PINs
Avoid simple numbers like 1234 or your birth year
Change your PIN if you feel it is known to others
Keep MPIN and UPI PIN different to avoid mix-ups
Update PINs every few months as a habit
Also, avoid writing them down or saving them in notes apps, which can be hacked. These steps make sure your transactions remain safe.
Many people think MPIN and UPI PIN are the same. In reality, they are not. MPIN is linked to mobile banking apps. UPI PIN is linked to UPI payments. Both have their own role and both should be kept private. Knowing the difference between MPIN and UPI PIN helps you avoid errors and keeps your money safe.
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FAQs on MPIN and UPI PIN
Are MPIN and ATM PIN the same?
No. An ATM PIN is used for withdrawing cash or swiping your card. MPIN is only for mobile banking apps.
How to change MPIN for UPI?
You cannot. UPI works only with UPI PIN. To change it, open your UPI app, select your bank account and reset your UPI PIN.
Can one bank account have multiple UPI PINs?
No. Each account is linked to just one UPI PIN. Even if you use the same account on different apps, you’ll need to enter the same PIN every time.
What happens if I enter the wrong PIN multiple times?
If you enter the wrong UPI PIN more than a few times, your account gets blocked for security. You’ll have to reset the PIN through your app to use it again.
UPI makes paying quick and easy. But what if your internet is not working? That is where offline UPI payments help. You can send money, check your balance or make purchases without mobile data or Wi‑Fi. This method works on both smartphones and basic phones. It uses the *99# USSD code to connect to your bank through the UPI system. It is simple, safe and works even in low-network areas.
What are Offline UPI Payments?
Offline UPI payments are digital transactions you make without internet access. Instead of opening a UPI app, you dial *99# from your phone. This connects to your bank using the National Payments Corporation of India’s secure USSD-based service. You can send or request money, check balances or view recent transactions. The service works with all Global System for Mobile Communication (GSM) networks and most banks in India. Here, every payment is verified using your UPI PIN.
Offline UPI Payment Options
Here is how different UPI offline payments compare. They are a smart choice when you are wondering how to pay without internet in places with weak or no network.
Method
Device needed
Internet
Limit
Best for
*99# USSD
Any GSM phone
No
₹5,000 per transaction
General use in low network areas
UPI Lite
Smartphone
Sometimes
₹500 per debit ₹2,000 wallet
Small quick payments without PIN
UPI Lite X
Smartphone with NFC
No
₹500 per debit ₹2,000 wallet
Tap to pay without data
UPI 123PAY
Feature phone
No
₹5,000 per transaction
Voice or IVR based payments
Background of Offline UPI Payment *99# Service
The UPI without internet *99# service started in November 2012 with MTNL and BSNL. In 2014 it expanded under the Pradhan Mantri Jan Dhan Yojana. So more users could send money without internet.
UPI launched in August 2016 for smartphones. USSD 2.0 went live on 30 December 2016, so feature phones could use UPI payment without internet through *99#. Today *99# supports 13 languages and 83 banks. It is a simple option if you want to know how to send money without internet.
Features of Offline UPI Payment *99# Service
Works on any GSM phone, including feature phones
Simple step-by-step menu that is easy to follow
Uses a signalling channel, so no internet is needed
Available 24×7 even on holidays
One common code *99# across operators
Your operator may charge a small USSD fee
Expands UPI offline payments access for users without smartphones or data
How to Enable UPI Without Internet?
Here’s what you need to do to enable offline UPI payments:
Once enabled, you can use it any time to make a UPI payment without internet.
How to Send Money Through UPI Offline Payments?
When you dial *99#, a menu will appear. You can choose either to ‘Send Money’, ‘Check Balance’ or ‘Request Money’ then follow the prompts. To send money without internet:
Dial *99#
Select ‘Send Money’
Choose mobile number, UPI ID or account number and IFSC
Enter the details and amount
Confirm with your UPI PIN
The money is sent instantly and you see a confirmation message. This is the simple process of how to transfer money without internet while keeping your transaction secure.
Benefits of UPI Offline Payments
Works anywhere, even without mobile data
Supports all GSM phones
Secure since every payment is PIN-protected
No app needed
Quick and simple steps
Troubleshooting Common Offline UPI *99# Issues
Bank not listed: Sometimes your bank may not show up on the list. Try again after some time or set your UPI PIN in the BHIM app and then use *99# again
Connection error: Make sure you are using your registered SIM in slot 1 and move to a place with better signal
Wrong UPI PIN: Reset it through *99# or in the BHIM app
Menu not loading: Your mobile operator may not support *99#. Check with them to confirm
Safety Tips for UPI Without Internet
Use only your registered SIM
Never share your UPI PIN
Keep within the ₹5,000 per transaction limit
Be aware of possible USSD fees from your operator
Stay alert to fraud and never authorise unknown requests
Whether you are travelling or facing a short network issue, knowing how to do UPI payment without internet can make life simpler. Offline UPI payments are safe, quick and easy to set up. With options like *99#, UPI Lite, UPI Lite X and 123PAY, there is always a way to pay!
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FAQs on Offline UPI Payments
Can I make an offline UPI payment?
Yes. You can use *99# to pay without internet on both smartphones and basic phones. It is quick, secure and works in most parts of India.
How to pay without UPI online?
Dial *99# from your registered mobile number. Select the payment option, enter the details and confirm with your UPI PIN. You can also try other offline methods like UPI Lite, UPI Lite X for tap and pay or UPI 123PAY for feature phone payments.
What is the process of offline payment?
Dial *99#, choose the service you need. Enter the recipient’s details, transfer amount then confirm with your UPI PIN. The payment is processed instantly and you will get a confirmation message.
What is the code to make UPI payment without internet?
*99# is the code you can use to make offline payments from your registered mobile number. All you have to do is dial the code and select ‘Send Money’, enter details and confirm with your UPI PIN.
What is the limit for offline UPI?
For *99#, it’s ₹5,000 per transaction. For UPI Lite/Lite X, it’s ₹500 per debit with a ₹2,000 wallet balance.
Investors are getting more concerned about how well companies can operate beyond monetary rewards. Factors like environmental responsibility, ethical treatment of stakeholders, and corporate governance are becoming equally important. ESG funds also identify with this change of direction. Wondering “what is ESG invest?” These are funds that target companies that are in line with particular environmental, social, and governance criteria.
What Does ESG Stand For?
ESG stand for the three core pillars used to assess a company’s sustainability and ethical practices:
Environmental (E): Helps to gauge the impact of an organisation on the planet. These include analysing the overall carbon footprint, use of water, energy efficiency, management of waste and the prevention of climate change.
Social (S): It evaluates the manner in which an organisation treats employees, customers and society. The major aspects are diversity and inclusion, employee rights, product safety, data privacy and community engagement. It also looks at the overall impact a certain company can have on its community.
Governance (G): Focuses on ethical leadership, board Diversity, Equity and Inclusion (DEI), executive pay, fairness, pay parity, shareholder rights, transparent policies, and strict regulatory compliance.
What is an ESG Mutual Fund?
An ESG mutual fund invests in companies that meet defined environmental, social, and governance benchmarks. To classify a scheme as ESG, fund managers rely on third-party ESG rating providers, internal research and disclosures from companies. ESG scores are published by agencies like MSCI, Sustainalytics or Refinitiv and often guide these decisions.
In India, SEBI has issued specific guidelines:
Only equity schemes can be labelled ESG funds.
Schemes must clearly disclose their ESG strategy (exclusion, integration, best-in-class, impact investing, etc.).
Asset Management Companies (AMCs) must invest at least 80% of assets in ESG-compliant securities.
Fund houses are required to disclose the ESG rating provider and scoring methodology.
Global benchmarks such as the MSCI ESG Leaders Index are also used to track top-performing companies with robust ESG practices.
Types of ESG Funds
There are different types of ESG funds, each defined by its investment approach and selection criteria:
Exclusionary or Negative Screening Funds: Avoid investing in industries considered harmful or controversial, such as tobacco, alcohol, gambling, weapons, or fossil fuels. This approach is also known as Socially Responsible Investing (SRI).
Positive Screening Funds: Invest in companies with the highest ESG ratings within their sector or region.
Best-in-Class Funds: Select top ESG performers even in industries with higher environmental or social impact, such as the most sustainable oil company.
Thematic ESG Funds: Focus on specific ESG-related themes like clean energy, water conservation, green technology, or gender equality.
Impact Investing Funds: Invest in projects or companies that create measurable positive outcomes for society or the environment, such as affordable housing or clean water initiatives, while also aiming for financial returns.
Green Bonds
Green bonds are fixed-income securities issued to finance eco-friendly projects such as renewable energy, sustainable agriculture, clean transportation, and pollution control. They attract investors seeking stable returns while contributing to climate goals, making them a popular tool in sustainable and responsible investing.
Climate Funds
Climate funds channel money into companies and projects that combat climate change. These include renewable energy, carbon reduction technologies, sustainable infrastructure, and climate-resilient businesses. For investors, climate funds offer exposure to growth sectors while supporting the global transition to a low-carbon economy.
Key Differences Between ESG Funds and Traditional Funds
The key differences between ESG funds and traditional funds can be understood through the following comparison:
Aspect
ESG Funds
Traditional Funds
Investment Criteria
Focus on companies with strong Environmental, Social, and Governance (ESG) practices in addition to profitability.
Focus on profitability, past performance, and growth potential.
Risk Management
Integrate ESG practices to assess and mitigate risks impacting long-term business performance.
Use conventional financial and market analysis methods to manage risk.
Financial Performance
May prioritise sustainability and long-term stability over short-term gains.
Aim to maximise short-term and long-term financial returns for investors.
Societal Impact
Designed to create a positive environmental and social impact through investments.
Societal impact varies depending on the companies selected in the portfolio.
Should You Invest in ESG Funds?
Like any investment, ESG funds have their pros and cons. Here’s a balanced overview of pros and cons so that you can get to know them better:
Pros:
Alignment with ethical values: Enables investment in companies that uphold causes such as climate action, human rights, and corporate ethics.
Long-term stability: ESG-driven businesses are better positioned to avoid legal, financial, and reputational risks, supporting consistent performance over time.
Growing market appeal: With ESG assets projected to exceed $50 trillion in the coming years, sustainable investing is attracting a rapidly increasing investor base.
Cons:
Reduced diversification: Excluding certain industries can limit the range of investment opportunities.
Inconsistent ESG ratings: Variations in scoring methodologies may result in differing evaluations of the same company.
Variable performance: ESG funds may underperform at times due to a narrower stock universe or sector-specific exposure.
The Future of ESG Investing in India
India is witnessing the rapid adoption of ESG investing, supported by SEBI’s BRSR (Business Responsibility and Sustainability Reporting) aimed at enhancing transparency among companies and mutual funds. Growing awareness, particularly among younger demographics such as Gen Z and Millennials, is driving demand for sustainable investment products. As a result, ESG mutual funds are evolving into mainstream investment options with strong growth potential rather than remaining a niche segment.
*Disclaimer: This blog is for educational purposes only and does not constitute financial advice. Please consult a registered financial advisor before making any investment decisions.
FAQs
Are ESG Funds a Good Investment?
For long-term growth, ESG funds can be a strong investment choice, especially for aligning capital with specific ethical values. However, they are not immune to market risks. As with any mutual fund, returns depend on market conditions, fund strategy, and portfolio composition. Clear assessment of investment objectives, both in terms of risk tolerance and return expectations, is essential before selecting an ESG fund.
What Do ESG Funds Invest In?
ESG funds, regulated by SEBI and guided by global frameworks, invest in companies meeting environmental, social, and governance standards. These include clean energy providers, ethical businesses, or tech firms with strong data privacy, while excluding industries like fossil fuels, tobacco, gambling, and weapons.
Is ESG investing tax-efficient in India?
Yes, ESG funds are taxed like equity mutual funds. STCG (within 1 year) is taxed at 15%, while LTCG (after 1 year, above ₹1.25 lakh exemption) is taxed at 10%. This makes ESG funds tax-efficient compared to many debt-oriented options.
How do ESG funds perform compared to Nifty 50/Sensex?
Performance varies, but ESG funds often show resilience in market downturns due to quality-focused investing. However, they may underperform in rallies driven by excluded sectors like oil, tobacco, or defense. Several ESG funds also benchmark themselves against indices like the Nifty 100 ESG, which track companies meeting defined sustainability and governance standards
Are ESG funds good for SIP investors?
Yes. ESG funds suit SIP investors looking for long-term wealth creation with sustainable businesses. However, returns may fluctuate as the ESG theme is relatively new in India.
Some investors prefer a broad spread across the market. Others like the idea of putting their money where their beliefs are. Thematic mutual funds cater to that second group. These funds stick to one main idea and choose companies that align with it. The theme could be something vast, like clean energy or more specific, such as upgrading urban transport networks. No matter how wide or narrow the scope, the common link between all chosen investments is the underlying theme.
Understanding Thematic Funds Meaning
When people ask what is thematic fund, the easiest way to explain it is to picture a single investment basket. Everything inside it has a connection beyond profit-making; maybe it’s part of a social shift, a consumer habit or an industry transformation. For example, a ‘digital economy’ theme could bring together IT firms, e-commerce platforms and fintech services. They may belong to different industries, but they all serve the same broader trend.
How They Differ from Sector Funds?
Thematic and sector funds are often mentioned in the same breath, yet they work differently.
Feature
Thematic Funds
Sector Funds
Scope
Multiple industries linked to a single concept
One industry only
Example
A ‘Green India’ fund might include renewable energy, electric mobility and recycling companies
A pure energy sector fund that invests only in power companies
Risk Level
Spread within the theme, moderately high
Concentrated risk, higher volatility
Thematic funds offer slightly more breathing space because they can draw from several industries within the same concept.
How Thematic Mutual Funds Work?
A thematic mutual fund usually goes through 4 steps:
Finding the theme: Fund managers pick an idea with strong long-term potential.
Selecting companies: Stocks are chosen if they fit the idea, regardless of sector.
Building the portfolio: Money is spread within the theme to keep risks balanced.
Keeping track: Holdings are reviewed regularly to see if they still suit the theme.
Examples of Common Themes
Indian investors have shown interest in several ideas:
Infrastructure growth: Construction, power, transport and allied services.
Sustainable energy: Solar, wind, biofuel and electric mobility.
Rising consumption: Businesses that benefit from higher household spending.
Tech innovation: IT services, fintech, automation and online marketplaces.
Why Investors Look at Thematic Mutual Funds?
Focused exposure: Lets you invest in areas you believe will grow.
Variety inside the theme: Covers more than one industry, even within a single idea.
Personal connection: Themes can reflect values, such as environmental care or digital progress.
Risks to Keep in Mind
Theme dependence: If the idea fades in relevance, performance can drop quickly.
Market timing matters: Entering at the wrong stage in the theme’s cycle can affect results.
Who Might Consider Thematic Mutual Funds?
They can suit people who already have a diversified core portfolio and want to add something targeted. They may also appeal to those willing to research and understand the chosen idea before committing money for several years.
Things to Check Before Investing
Before buying units of a thematic mutual fund, look at:
See if the theme has long-term growth potential in India.
Check the fund manager’s track record with similar funds.
Review the expense ratio and other related charges.
Ensure the fund is diversified and not concentrated in one area.
Thematic funds let you invest in ideas you believe in, add diversification, but shouldn’t replace your core portfolio.
If you need quick access to cash without selling your holdings, Fibe Loan Against Mutual Fund is worth considering. It allows you to borrow up to 80% of your mutual fund value for 6 months. You can only pay the interest as EMIs for what you use, helping you maintain your investments while meeting short-term needs.
FAQs on Thematic Mutual Funds
What is an example of a thematic fund?
A clean energy fund investing in solar panel producers, battery makers and wind turbine companies. They are from different industries but serve the same renewable energy goal.
Is it good to invest in thematic funds?
It depends on your comfort with theme-specific risks and your knowledge of the chosen idea. They can offer strong potential but are best as part of a balanced investment plan.
If you invest in mutual funds, you’ve probably received an account statement at some point. For many, it’s just another PDF in the inbox. But that file is more than a formality; it’s a snapshot of where your money stands today, how it’s grown and the transactions that got it there.
Learning to understand the statement properly means you can track your progress without relying on anyone else to interpret the numbers for you.
What Exactly is a Mutual Fund Statement?
A mutual fund account statement is a document the fund house shares with you, either at set intervals or whenever you request one. You can also access it by logging into an investment portal and choosing the mutual funds statement download option.
Think of it as a combined diary and balance sheet for your investments. It lists your holdings, updates their market value and records every move – from SIP credits to redemptions. The design varies slightly from one provider to another, but the main sections remain familiar once you’ve seen a few.
What are the Main Sections and How to Read Them?
1. Investor Information
Usually found at the top, this section confirms:
Your name and address
The folio number linked to your account
Contact details on file
It’s quick to skim but worth doing. An incorrect folio or outdated address could complicate future transactions.
2. Portfolio Summary
Here you’ll find an at-a-glance view of your current investments. This is where the important numbers sit:
Field
What You See
Fund Name
Scheme where you hold units
Units Held
Number of units currently owned
NAV
Net Asset Value per unit (current market price)
Current Value
Market worth = Units × NAV
Investment Amount
Total amount you’ve put into this fund
If you just want a quick status check, this table is the place to look first.
3. Transaction History
This is the logbook of everything you’ve done in that scheme:
New purchases or SIP instalments
Partial or full redemptions
Switches between schemes
Dividend payouts (if applicable)
Each entry shows the date, NAV, number of units, and transaction amount. Comparing this with your own records ensures there are no discrepancies.
4. Performance Data
Your mutual fund statement might include a section showing how your investment has performed over time:
Absolute return: Percentage change since you invested
Annualised return: Average yearly growth rate
XIRR: Calculation method used when investments happen at irregular intervals
These figures help you judge if the fund is in line with your expectations.
5. Dividend Information
If you’ve chosen a dividend plan, payouts will be listed here along with the dates. This is useful if you use dividends as a regular source of income or want to track how much the fund has distributed.
6. Capital Gains
Whenever you redeem units, gains are categorised as short-term or long-term. This section makes life easier during tax filing, since you can refer to it for accurate numbers.
How to Approach Reading It?
Rather than reading it top to bottom without focus, try this approach:
Check your details: Make sure name, folio, and contact information are correct.
Review the portfolio table: Look at the NAV, units and current value.
Go through the transactions: Confirm SIP credits, purchases and withdrawals match your records.
Note the returns: Compare them with your target or with other investments you hold.
Keep track of gains: File this information for tax purposes.
Getting All Mutual Fund Statements in One Place
Many investors prefer a consolidated statement covering all their holdings. Here’s how to download mutual fund statement:
Visit the registrar or fund house website.
Use your folio number or PAN to log in.
Select all mutual fund statement or similar.
Pick the period you want and request an email copy or a PDF download.
This saves time if you invest through multiple schemes or fund houses.
Common Mistakes When Reading
Skimming past incorrect contact information.
Not noticing missing or incorrect SIP credits.
Ignoring dividend entries when tracking income.
Focusing only on current value instead of overall growth pattern.
Conclusion
Once you’re comfortable reading your mutual fund statement, it becomes more than just paperwork – it’s a useful tool for making informed decisions. You can spot errors, track your returns and decide when to make changes.
If you ever need access to funds without selling your investments, you could consider Fibe Loan Against Mutual Fund. It lets you borrow up to 80% of your mutual fund value for a 6-month term, with interest rates starting at 10.49% per annum, helping you meet short-term needs without disturbing your long-term plans.
FAQs on Understanding Mutual Fund Statements
How do I read my mutual fund statement?
Start with your personal details, check the portfolio summary for units, NAV, and value, then review your transaction history. Finally, look at the performance data to see if you’re on track.
How to read a mutual fund summary?
It’s the condensed version – showing total investment, current value, and NAV without listing each transaction.
If you’re wondering whether liquid funds or FDs are better for your savings, the answer depends on how long you can set the money aside and whether you prefer flexibility or fixed returns. Liquid funds work better when you want quick access and market-linked returns, while FDs are more suited for those who prefer stable, predictable income for a fixed period.
Both are safe for short-term savings, but they serve different purposes. Let’s break down liquid funds vs FD so you can decide which one fits your financial needs better.
What are Liquid Funds in Mutual Funds?
So first, what is liquid fund?
They’re a type of debt mutual fund. But instead of investing in stocks or long-term bonds, they stick to instruments that mature quickly, such as:
Treasury bills
Certificates of deposit
Commercial papers
These usually come with a maturity period of less than 91 days. That’s why they’re considered low-risk. Since the instruments are short-term and generally high quality, their value doesn’t swing as much as equity funds do.
You’re also not locking your money away; you can take it out when needed, often within a day. However, the returns are variable and depend on several factors.
What Affects the Liquid Fund Interest Rate?
The liquid fund interest rates depend on how short-term debt markets behave.
If the Reserve Bank of India (RBI) increases the repo rate, liquid fund returns may improve. If the market tightens or short-term borrowing costs fall, the returns may drop a bit. But because these funds invest in very short-term papers, the movement is not drastic.
In short, it’s not guaranteed like an FD, but it’s also not too risky.
How Do Fixed Deposits Work?
Most of us are already familiar with FDs. You go to a bank or open one online, put in your amount, choose how long you want to keep it and you get a fixed return.
It’s not linked to the market. Once you lock in your FD, the interest rate stays the same – no surprises. The only catch is that if you want to take your money out early, you’ll either get a lower return or pay a penalty.
This usually means a reduced interest rate on the amount withdrawn, and in some cases, an additional charge depending on the institution’s policy. So while premature withdrawal is allowed, it comes with a cost.
Quick Comparison: Liquid Funds vs FD
Feature
Liquid Funds
Fixed Deposits (FDs)
Type of Product
Debt mutual fund
Bank time deposit
Return
Market-linked, varies slightly
Fixed, pre-decided
Risk Level
Low to moderate
Very low
Lock-in
No lock-in period
Fixed for chosen tenure
Withdrawal Time / Liquidity
T+1 liquidity (next working day in most cases)
Immediate access, but with a penalty for early exit
Taxation
Capital gains tax based on holding duration
Fully taxable interest as per slab
Suitability
Suitable for short-term needs like paying school fees, making down payments or holding emergency funds. Offers liquidity and flexibility.
Suitable for long-term savings goals, retirement planning, or when you prefer fixed returns and don’t need early access.
Tax Rules: Know the Difference
Here’s where people often miss a key point.
FDs: The interest you earn is added to your income and taxed based on your slab. Banks may also deduct TDS once you exceed the annual interest limit. However, tax-saving FDs with a 5-year lock-in may be eligible for deductions under Section 80C, subject to conditions.
Liquid funds: You only pay tax when you sell. If you redeem within three years, you pay short-term capital gains tax as per your slab. If you stay invested for more than three years, long-term capital gains rules apply (with indexation, depending on the policy).
This can make a big difference for people in the higher tax brackets.
Conclusion: Look at Your Needs, Not Just Returns
At the end of the day, the liquid funds vs FD decision boils down to what you really need right now.
Want stable, predictable returns? Choose an FD.
Need quick access and slightly better flexibility? Try liquid funds.
And if you already hold mutual fund investments and suddenly need money without redeeming your mutual fund units, there’s something else to consider. With Fibe Loan Against Mutual Fund, you can get a loan of up to 80% of your fund value for six months, with interest rates starting at 11% per annum. It’s a handy way to handle emergencies while keeping your investments intact.
Pick what fits your goal and not what sounds better on paper.
FAQs
Which Is Better FD or Liquid Fund?
There’s no straight answer. It depends on:
How long you can let your money stay invested
Whether you want fixed returns or flexibility
Your tax bracket
How soon you might need the money
FDs offer certainty. You know exactly what you’ll get and when. No tracking, no surprises. But if you break it early, you lose out.
Liquid funds, meanwhile, are for people who want to keep their options open. The returns might not be locked, but the access is smoother. You don’t have to plan too far ahead.
A mix of both is what many Indian investors go for – part in FD for long-term peace of mind, part in liquid funds for everyday control.
Are Liquid Funds Safe During a Recession?
Liquid funds invest in instruments with short-term maturity and are usually from well-rated institutions. So they tend to be more stable during rough times.
That said, not all liquid funds are the same. Some may take higher risks to push returns. Always check what kind of papers the fund holds. Stick to low-credit-risk ones, especially if safety is your top concern.
When planning how to save your money, two options usually top the list – a fixed deposit and a savings deposit account. Both are widely used across India, backed by RBI-regulated financial institutions, and considered low-risk choices. But they work quite differently.
A fixed deposit locks your funds for a chosen period and offers higher interest, while a savings deposit account keeps your money flexible for everyday use with lower returns.
So, the real question isn’t just about safety – it’s whether you want access or growth. Let’s compare the two in simple terms, so you can decide which one fits your financial habits and goals better.
So, What Are Savings Deposits?
Most people have one. If not, they’ve heard about it. A savings deposit account is what banks offer for everyday money storage. You earn some interest, but the real value lies in accessibility.
Saving deposit meaning is simple. It’s money you keep handy – secure, earning something and always available.
What is a Fixed Deposit?
Now, a fixed deposit is slightly different. You invest a lump sum for a fixed period and during that time, it earns interest at a higher rate than your savings deposit account.
Sounds good, but only if you’re sure you won’t need that money midway.
Here’s how it works:
You decide the amount and the tenure
The rate is locked in
Early withdrawal usually comes with a penalty
You get the principal plus interest at the end
It suits people who have idle money that they don’t want to risk, but still want better growth.
Main Types of FDs Available
Each type of FD serves a different purpose. The one you choose should depend on your income flow, financial goals, and how frequently you’ll need to access the funds. Here are the main types:
1. Regular Fixed Deposit
This is the standard FD offered to all individuals. You deposit a fixed sum for a specific period and earn interest until maturity.
2. Senior Citizen FD
Offered to individuals above a certain age (usually 60+), this FD type provides a slightly higher interest rate to support retired investors looking for steady income.
3. Recurring Deposit (RD)
Ideal for people who want to save a fixed amount every month instead of a lump sum. Interest is compounded and paid at maturity. It’s useful for salaried individuals.
4. Tax-Saving FD
This FD comes with a 5-year lock-in and offers tax benefits under applicable sections of the Income Tax Act. Premature withdrawal is not allowed, but the principal qualifies for deductions.
5. Flexi FD
Also known as an auto-sweep FD, this is linked to your savings deposit account. When your balance crosses a set limit, the excess gets moved to a fixed deposit automatically. You get better returns while maintaining access.
Fixed Deposit vs Savings Account: A Quick Table
If you’re weighing options based on access, returns, and flexibility, this table should help. It breaks down both choices across key features like liquidity, accessibility, and suitability for different goals.
Feature
Savings Deposit Account
Fixed Deposit
Accessibility
Anytime, through an ATM or app. The liquidity is high with instant withdrawals
Limited – only after maturity or with a penalty
Interest Rate
Lower
Generally higher
Lock-in Period
None
Yes, fixed as per your choice
Best For
Daily use, emergencies
Idle funds, savings goals, disciplined planning
Withdrawal Flexibility
High
Low, with penalty on early exit
Tax on Interest
Taxable
Also taxable
If you want flexibility and the ability to move money when needed, go with a savings deposit account. If you’re planning ahead and can set money aside, a fixed deposit may help it grow better.
Tax Rules on Interest
Whether it’s a fixed deposit or savings deposit account, interest is considered income and is taxable. No way around it.
But here’s the deal:
For savings accounts, interest earned up to ₹10,000 in a financial year is eligible for deduction under Section 80TTA (for individuals below 60). For senior citizens, this limit extends up to ₹50,000 under Section 80TTB.
Interest from fixed deposits is fully taxable. If the interest income crosses the applicable threshold, Tax Deducted at Source (TDS) applies. To avoid TDS on FD interest (in eligible cases), you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to the bank.
Either way, factor it in while calculating your returns. You don’t want surprises during tax season.
Savings Account Vs FDs: Things to Consider
Both options are usually safe, especially with reputed financial institutions. That said, not everything is risk-free.
Savings accounts are easy to operate, but returns are minimal
Fixed deposits lock your funds and early exit can lead to small losses through penalties
Insurance covers a certain limit only; anything beyond that, you must evaluate on your own
So yes, both are safe, but responsible planning is still required.
Conclusion: Use Both, Not Just One
Use your savings deposit account for monthly needs and emergencies. Keep some money in a fixed deposit for better returns. That way, you’re not caught off guard when life throws a curveball and your savings still grow without stress.
If you’re looking for a safe investment option that can help you earn steady returns consider booking an FD on the Fibe app. You can start as low as ₹1,000 and invest it over a tenure that works for you.
FAQs
Which is better – savings or fixed deposit?
That depends on what you want. If flexibility is your top priority, go for a savings deposit account. If you want higher returns without risk and can set the money aside, fixed deposits are ideal.
What are the disadvantages of a fixed deposit?
You lose liquidity
Interest is taxable
Early withdrawals come with penalties
Inflation may eat into your returns if you lock in for too long
Is a fixed deposit 100% safe?
It is generally safe with banks and regulated institutions, but like all financial tools, there are limits. Always check deposit insurance coverage and avoid putting everything in one place.
