Investing in fixed deposits (FDs) has long been a favourite among Indian investors seeking a safe and reliable way to grow their savings. With banks offering fixed returns, minimal risk, and flexible tenures, FDs are often the go-to choice for risk-averse individuals.
But as times change, so does the way we invest.
Gone are the days when you had to visit a bank to open an FD. Now, with just a few taps on your phone, you can invest from the comfort of your home. Enter Stable Money, an app designed to streamline the FD investment process.
But is it truly more convenient, safe, and reliable than investing directly with a bank? Let’s dive in.
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Buckle up. Here we go!
What is the Stable Money App?
Launched in 2022, Stable Money is a digital platform that enables users to invest in FDs across multiple banks without ever setting foot in a branch. The app aims to simplify fixed-income investments by offering a marketplace for comparing FD rates, investing, and managing all your deposits in one place.
Instead of checking with individual banks for FD rates, Stable Money merges them, allowing you to pick the best option and invest directly through the app. It also integrates with partner banks, so you don’t need to open multiple accounts to diversify your investments. Once registered and KYC-verified, you can seamlessly invest in FDs offered by various banks.
How Does the Stable Money App Work?
Here’s a step-by-step overview:
- Download the App: Available on both Google Play Store and Apple App Store.
- Complete Registration: Register with your phone number and OTP.
- Compare FD Rates: Browse through FD options from different banks, and compare interest rates, tenures, and special offers. All necessary details like minimum deposit amounts, penalties for premature withdrawals, and interest payout frequencies are displayed.
- Choose Your FD: Select the FD that matches your goals—whether you prioritise returns or flexibility in withdrawals.
- Make the Investment: Pay via UPI or net banking, and your money is invested in just a few clicks.
- Video-KYC: After payment, complete a video-KYC by showing your PAN card and signing during a call with a bank executive.
- Track and Manage Your FDs: The app provides a dashboard to monitor your investments, maturity dates, and interest payouts.
Before comparing rates, know how much your FD will actually earn. Use our FD Calculator to calculate maturity amounts with different interest rates and tenures.
Safety First: Is Your Money Secure with Stable Money?
When it comes to investments, especially for risk-averse FD investors, safety is paramount. So, how does Stable Money stack up in terms of security? Let’s break it down:
- Bank-Backed Security: It’s crucial to understand that when you invest through Stable Money, your FDs are still with regulated banks, not with the app itself. This means your investments enjoy the same level of institutional security as they would if you invested directly with the bank.
- DICGC Protection: Just like traditional bank FDs, your deposits made through Stable Money are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakhs. This insurance applies per bank and depositor.
- Regulatory Compliance: Stable Money operates under the guidelines set by the Reserve Bank of India (RBI). The app adheres to strict KYC norms, ensuring that only legitimate investors can use the platform.
- Data Security: In the digital age, data privacy is a significant concern. Stable Money claims to use bank-grade encryption to protect user data and transactions. However, as with any digital platform, users should remain vigilant about their personal information.
While these safety measures are reassuring, it’s worth noting that the app itself is relatively new. As with any FinTech platform, there’s always a potential for unforeseen security challenges. Users should stay informed about the app’s evolving security measures and any reported issues.
Convenience Factor: Stable Money vs. Direct Bank Investments
Let’s compare the two:
1. Convenience:
- Stable Money: You can invest in multiple FDs across banks without visiting branches or juggling multiple accounts. Everything is digital—from comparing rates to tracking investments.
- Banks: Direct investment with a bank might require you to visit a branch or navigate its app or website. Managing FDs across multiple banks means handling them separately.
2. Comparison of Rates:
- Stable Money: The app merges FD rates from different banks, saving you time and helping you make informed decisions.
- Banks: You’d need to manually check each bank’s rates, which is tedious and time-consuming.
3. Account Management:
- Stable Money: A single dashboard lets you view all your FD investments, simplifying management.
- Banks: You’ll need to log into each bank’s portal separately, making it harder to track multiple investments.
4. Premature Withdrawals:
- Stable Money: Since FDs are bank-based, each bank’s premature withdrawal rules apply, and the app guides you through the process.
- Banks: You follow the respective bank’s process, which varies across institutions.
Clearly, Stable Money offers more convenience, especially for managing multiple FDs from various banks.
The Reality Check: Is Stable Money Reliable for FD Investments?
To truly understand the reliability of Stable Money, we put the app to the test by investing in some FDs offered on the platform. Here’s what we discovered:
Short answer: Not yet.
Here’s why:
- Limited Bank Partnerships: While Stable Money promotes itself as a comprehensive FD marketplace, the reality is that it currently has partnerships with only a handful of banks, primarily small finance banks. The absence of major banks on the platform limits your options significantly.
- Bank Account Opening Hurdles: Contrary to its claims of eliminating the need for multiple bank accounts, we found that for some FD investments, you still need to open a bank account. While the app offers some guidance in opening zero-balance online accounts quickly, it’s not as seamless as advertised.
- Video-KYC Challenges: The video-KYC process, which is crucial for finalising your investment, proved to be a major problem. In our experience, one out of two KYC attempts failed because the bank executive unexpectedly ended the call. Re-attempting the KYC isn’t straightforward, and many users have reported similar issues. This process is handled by the bank’s internal team, not Stable Money, leading to inconsistencies and frustrations. So, you might face this issue with other FD platforms as well.
- Instant Withdrawal Limitations: While Stable Money claims to offer instant withdrawals, this feature is currently available with only two partner banks – Suryoday SF Bank and Unity SF Bank. For other banks, withdrawals can take 1-2 working days, which isn’t ideal for investors who prioritise liquidity.
These shortcomings make us question the platform’s reliability for emergency funds.
Final Thoughts
Stable Money represents an interesting step forward in the digitalisation of FD investments. It offers undeniable conveniences, especially in rate comparison and centralised management of multiple FDs. For tech-savvy investors who prioritise these features and are willing to navigate some teething problems, it could be a valuable tool.
However, our experience reveals that the platform is not yet as reliable or comprehensive as it claims to be. The limited bank partnerships, challenges with the KYC process, and restrictions on instant withdrawals are significant drawbacks that potential users should consider carefully.
For those who already have a savings account with a bank offering competitive FD rates, investing directly might still be the most efficient route. This is particularly true if you value instant liquidity or require features like sweep-in facilities, which are not currently available through Stable Money.
It’s worth noting that the FinTech landscape is rapidly evolving. While Stable Money faces challenges now, it’s possible that many of these issues could be resolved in the future as the platform matures and expands its partnerships.
In the end, the choice between Stable Money and traditional FD investments boils down to your personal preferences, risk tolerance, and financial goals.
If convenience and rate comparison are your top priorities, and you’re willing to work through some inconsistencies, Stable Money might be worth exploring. But if reliability, instant access to funds, and a direct bank relationship are more important to you, the traditional FD route still holds its ground.
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Still Curious?
If you are like us, who likes to analyse a little more or check out content in different formats, well you are in luck. Below you can find some suitable content we found.
Reddit – Is Stable Money app safe for investment?
Vrid – Fixed Deposit: One of the Top 5 Short-Term Investment Option
Note: We don’t have any affiliation with them. We are sharing links only for educational purposes. The opinions expressed by them belong solely to them and do not reflect the views of Vrid.
