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Every fintech product team evaluating Fixed Deposits asks the same question: "What's the revenue potential?" The answer depends on your user base, placement strategy, and the commission structure you negotiate.
This article breaks down the unit economics of FD distribution — from per-booking revenue to lifetime value — so you can build a realistic business case.
FD distribution revenue comes from two sources:
A flat fee earned each time an FD is booked through your platform.
| Tier | Per-Booking Fee | Typical Partner Profile | |------|----------------|----------------------| | Standard | Rs 50-100 | Emerging fintechs, lower volumes | | Growth | Rs 100-150 | Mid-scale platforms, growing volumes | | Enterprise | Rs 150-200 | High-volume platforms with premium placement |
An ongoing fee based on the FD amount that stays on the platform — paid as basis points (bps) on Assets Under Management.
| Tier | Trail Rate | Annual Revenue per Rs 1 Cr AUM | |------|-----------|-------------------------------| | Standard | 5-10 bps | Rs 5,000-10,000 | | Growth | 10-15 bps | Rs 10,000-15,000 | | Premium | 15-25 bps | Rs 15,000-25,000 |
The trail is where the compounding happens. Unlike the per-booking fee (one-time), the trail is earned continuously as long as the FD is active. For a 3-year FD, you earn trail for 36 months.
Let's walk through a step-by-step revenue projection for a fintech platform with 1.5 million Monthly Active Users (MAU).
| Variable | Value | Notes | |----------|-------|-------| | MAU | 1,500,000 | Monthly Active Users | | Savings intent | 15% | % of users interested in savings products | | FD discovery rate | 10% | % of savings-intent users who see FD offering | | Conversion rate | 5% | % of discoverers who complete an FD booking | | Average FD amount | Rs 50,000 | Varies by platform type | | Average FD tenure | 12 months | — | | Commission rate | 15 bps | Annualized trail on FD amount |
Step 1: Users who see the FD product = 1,500,000 x 15% x 10% = 22,500 users/month
Step 2: Monthly FD bookings = 22,500 x 5% = 1,125 bookings/month
Step 3: Monthly FD AUM generated = 1,125 x Rs 50,000 = Rs 5.63 crore/month
Step 4: Monthly revenue = Rs 5.63 crore x 15 bps = Rs 84,375/month
Step 5: Annual revenue = Rs 84,375 x 12 = Rs 10.1 lakh/year
For 12-month FDs with monthly bookings, AUM accumulates over the year:
Trail revenue grows as AUM compounds. Year 2 includes both new bookings AND renewals from Year 1 FDs.
| Scenario | MAU | Monthly Bookings | Annual AUM | Annual Revenue | |----------|-----|-----------------|-----------|----------------| | Conservative (500K MAU) | 500K | 75 | Rs 2.7 Cr | Rs 27,000 | | Growth (1.5M MAU) | 1.5M | 1,125 | Rs 67.5 Cr | Rs 10.1 lakh | | Aggressive (5M MAU) | 5M | 7,875 | Rs 708 Cr | Rs 1.06 crore | | Tier 1 (10M MAU) | 10M | 15,750 | Rs 1,418 Cr | Rs 2.84 crore |
The economics scale significantly with MAU. A Tier 1 platform (10M+ MAU) can generate Rs 2-3 crore annually from FD commissions alone.
Lifetime Value per FD customer goes beyond the first booking:
FD customers reveal savings behavior, income levels, and risk appetite through their booking patterns:
The cross-sell LTV is hard to quantify precisely but is consistently cited by fintech partners as one of the most valuable aspects of offering FDs.
How does FD distribution compare to other commission-earning financial products?
| Product | Commission Model | Typical Revenue | Regulatory Overhead | User Friction | |---------|-----------------|----------------|--------------------|--------------| | Fixed Deposits | 50-200/booking + 5-25 bps trail | Moderate | Low (no SEBI/IRDAI license) | Low-Medium | | Mutual Funds | 50-100 bps trail (regular plan) | Higher at scale | High (AMFI registration required) | Low | | Insurance | 15-40% first year premium | High per transaction | Very High (IRDAI license required) | High | | Personal Loans | 1-3% of disbursed amount | Highest per transaction | High (RBI digital lending guidelines) | Medium |
No licensing barrier: FD distribution doesn't require SEBI, IRDAI, or any specific financial license. You're providing a technology channel, not financial advice.
Near-zero marginal CAC: If you're embedding FDs in an existing app, the marginal cost of acquiring an FD customer is near zero — they're already your user.
Predictable revenue: Unlike mutual fund trail (which fluctuates with AUM and market conditions), FD trail is fixed for the tenure of the deposit. No market risk.
Stickiness: FD holders return to the app regularly — to check portfolio value, track interest, view maturity timelines. This is higher engagement than most financial products generate.
Complementary: FDs don't compete with your other products. A user who books an FD can also use your payment, lending, and investment features. FDs fill the "safe savings" slot in their portfolio.
The single biggest variable in FD conversion is product placement — where and how FDs appear in your app.
| Placement | Typical Discovery Rate | Typical Conversion | |-----------|----------------------|-------------------| | Homepage feature card | 15-20% | 5-7% | | Dedicated "Save" or "Invest" tab | 10-15% | 4-6% | | Post-payment nudge ("Your payment of Rs X is done. Save Rs Y in an FD?") | 5-8% | 8-12% | | Buried in "More Products" menu | 2-3% | 2-3% |
The platforms that see the highest FD volumes are the ones that actively surface FDs in high-intent moments — after a salary credit, after a large payment, or within a savings/investment hub.
FDs mature. Every maturity is a re-engagement opportunity:
Platforms with mature FD portfolios see Year 2 revenue that includes both new bookings AND renewals — effectively doubling the revenue base without additional acquisition cost.
Commission revenue is directly measurable. But FDs create value beyond commissions:
FDs create locked, stable assets on your platform. For companies that report AUM (neobanks, wealth platforms), FD AUM is predictable and doesn't fluctuate with market conditions.
FD booking data reveals customer segments: conservative savers, goal-oriented planners, tax optimizers, senior citizens. This segmentation enhances targeting for all other products.
Users with active FDs have a reason to open your app regularly. Portfolio views, interest tracking, and maturity countdowns create ongoing engagement that transactional products (payments, trading) don't naturally generate.
Three levers to optimize FD distribution economics:
The math is straightforward. The execution is in the details.
Blostem handles the FD infrastructure — booking, KYC, payments, compliance — so you can focus on placement, conversion, and growth. See our platform.
Get in touch with our team to discuss how Blostem can power your platform.
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