Credit Card Against FD

A credit card against a fixed deposit is a strategic step towards building a strong credit score. Regardless of your credit history or financial status, you can apply for a credit card against a fixed deposit and boost your credit score.

Almost all banks in India offer this type of credit card, which can help customers overcome a bad credit score and improve their financial health. It can be a credit-building tool, and you can also earn money with your deposit.

A credit card against FD is relatively easier to acquire compared to other types of credit cards. Read more to find out which credit card against FD is most suitable for you and how to apply for it.

Table of Contents:

• ⇾ Understanding Credit Cards Against Fixed Deposit
• ⇾ List of Banks Offers a Credit Card Against FD
• ⇾ Axis Bank Credit Card against FD
• ⇾ HDFC Bank Credit Card against FD
• ⇾ SBI Bank Credit Card against FD
• ⇾ ICICI Bank Credit Card against FD
• ⇾ IDFC FIRST Bank Credit Card against FD
• ⇾ Bank of Baroda Credit Card against FD
• ⇾ Canara Bank Credit Card against FD
• ⇾ Indian Bank Credit Card against FD
• ⇾ SBM Bank Credit Card against FD (India)
• ⇾ FD-Based Credit Card Eligibility Criteria
• ⇾ Benefits of FD Credit Cards
• ⇾ Steps to Get an FD Credit Card
• ⇾ Document Required to Get a Credit Card on FD
• ⇾ Frequently Asked Questions

Understanding Credit Cards Against Fixed Deposit

A credit card against a fixed deposit is a simple method of providing a credit card to the applicant with the fixed deposit they have as collateral. This makes it a secured credit card.

As the credit card is drawn using the fixed deposit, the credit limit will be around 75-90% of the deposit amount.

For example, for an FD of 1 lakh, the card limit would be around ₹75,000–₹90,000.

Best Credit Cards Against FD in India

Most banks in India offer this type of service with varying benefits. Here is a comprehensive list of top banks and minimum FD amounts:

Here are some of the most attractive features offered by some banks that can help you find the best credit card against FD:

Axis Bank Credit Card Against FD

Axis Bank offers some unique, attractive features, such as:

• No income proof is required.
• Higher credit limit based on FD amount, up to ₹20 lakhs.
• Interest-free period of up to 50 days.
• Rewards and reward points.

The cards they offer include

HDFC Bank Credit Card Against FD

What sets HDFC apart from any other banks in this aspect is

• No need for income or employment information when you apply for a credit card.
• Credit limit up to 90% of FD value
• HDFC offers the following credit cards with benefits:

SBI Bank Credit Card Against FD

SBI’s Unnati credit card offers some of the best benefits for their customers:

• No annual fees up to the first 4 years.
• Credit limit up to 80-90% of deposit value.
• Reward points and milestone points.
• Fuel surcharge waiver.

The card offers some of the most exciting features:

• Free upto first 4 years
• Reward points and cashbacks
• Milestone rewards
• Fuel waiver

ICICI Bank Credit Card Against FD

ICICI supports the customer by providing benefits such as:

• Earn reward points for almost all expenditures.
• Provides security through chip technology.

ICICI Bank offers 2 credit cards against FD

IDFC FIRST Bank Credit Card Against FD

IDFC stands out from other banks by providing various features like

• Zero interest charges on ATM cash withdrawals for up to 48 days.
• Zero-markup fee on international transactions.
• Never-expiring rewards.

The cards offered by IDFC are:

Bank of Baroda Credit Card Against FD

At Bank of Baroda, you can get benefits like:

• Earn reward points on department stores and movie spending.
• Fuel surcharge waiver at all fuel stations.

Cards by Bank of Baroda include

Canara Bank Credit Card Against FD

Canara Bank supports its customers by providing

• Reward points for every Rs 100 spent on POS/e-commerce.
• Lounge access.

Below mentioned are the details of credit cards against fd offered by Canara bank

Indian Bank Credit Card Against FD

Indian Bank is flexible with benefits such as:

• No joining fees.
• Credit limit of up to 90% of the FD principal amount.
• Attractive reward programs.

SBM Bank Credit Card Against FD (India)

SBM Bank provides attractive features such as:

• Flexible credit limit.
• Digitised application process.
• No joining and renewal fees.

The most attractive feature of the SBM’s credit card against FD (SBM Magnet Credit Card) is that

• Unlimited Magnet Coins as rewards
• FD earns up to 7% p.a. interest.

FD-Based Credit Card Eligibility Criteria

Although most banks offer FD-based credit card features, customers must meet certain eligibility criteria.

1. Age: You must be at least 18 years old (legal age).
2. Fixed deposit amount: There will be a minimal amount to be deposited at the bank.
3. KYC compliance: You will need to fulfil the KYC requirements with a valid identity and proof.
4. Credit history: Even though credit history is not a strict requirement, your credit history can have an impact on your card benefits.
5. FD tenure: Some banks might have a lock-in period for the amount put as a deposit.
6. Lien Marketing: The bank will mark a lien on your FD. This means that you cannot withdraw the amount until you clear the dues.
7. Nationality: While some banks consider giving credit cards against fixed deposits to NRIs, most banks require the customers to be Indian residents.
8. Existing FD holders: For most banks, owners of 5-year tax-saving FD accounts are not eligible for this type of loan.

Benefits of FD Credit Cards

Owning a credit card has its own set of advantages, but a credit card against a fixed deposit could be the best step in building your financial health. This specific credit card has a unique set of benefits over the conventional credit cards, such as:

1. Easy Approval

Generally, a good credit history is not necessary and that makes acquiring the card rather easy. This makes the card accessible to a vast majority of the population, including students, homemakers, freelancers, and people, especially with low credit scores.

2. Security against over-expense

The credit limit would be about 75–90% of the FD amount, ensuring a controlled expenditure and reducing the risks of debt.

3. Credit Building

A fixed credit card against FD helps individuals with low credit scores build or improve their existing scores into better ones through responsible usage and timely payments. For starters, this will be a stepping stone for the usage of unsecured credit cards in the future.

4. Interest on FD

Even though you are using a credit card against an FD, the amount you deposited is not idle, as the interest rates on the FD will remain the same and your fund will continue maturing throughout the tenure.

5. Wide range of acceptability

A credit card against FD is widely accepted throughout the world, just like any unsecured credit card. However, offers and benefits for certain functions might vary, but the basic functionality remains the same.

6. Low Fees

Compared to other unsecured credit cards, a credit card against FD requires lower annual fees. Some banks offer lifetime-free credit cards too.

7. Minimal documentation

The process is fairly simple with minimal paperwork, compared to an unsecured credit card. The minimal documentation and easier approval of cards make these types of cards easily accessible to customers.

8. Rewards points

Many banks offer reward points on expenditure, allowing them to earn through their spending. You could use these points to claim various rewards from their reward store.

9. Upgrade to Unsecured credit cards

You could upgrade your existing credit card against FD onto an unsecured credit card later, after building a good credit score through consistent and responsible usage.

Steps to Get an FD Credit Card

Acquiring a credit card against your FD is a straightforward procedure. If you are an individual who already has an existing fixed deposit, it would be a much simpler procedure for you.

Following are some of the methods allowed by almost all of the banks to apply for credit cards with an FD.

• Online through net banking
• Online through mobile banking
• Online using the bank’s website (Applicable for non-existing customers)
• Offline by branch visit.

Here are the generic steps you can follow to get a credit card against FD:

1. Verify eligibility: You must make sure that you satisfy all eligibility criteria before applying for the card.
2. Choose the bank and credit card: Finding out the best credit card suited for your usage is a key step in looking for credit cards. Figure out the card best suited for you based on the charges, lock-in period, interest rates, and benefits.
3. Open an FD account: For non-existent customers, opening an account will be the primary step towards acquiring a credit card against FD.
4. Apply for the credit card: You can choose to use one of the online or offline methods to apply for your credit card.
5. Complete KYC verification: This step is taken to verify you with the details provided.

Once these major steps are completed, your card will be approved and issued. You will receive the physical card by post, while you can get the details for the digital card right at the end of the process.

Document Required to Get a Credit Card on FD

A credit card against an FD is a great way to kick-start your credit journey. While the card is easier to acquire and use, there are certain documents required while applying for the card, such as:

1. Proof of your fixed deposit
2. KYC documents (Identity proof)
1. Aadhaar Card (preferred)
2. Voter ID Card
3. Passport
4. Driving License
3. Address proof
1. Aadhaar Card
2. Utility Bills (electricity, water, telephone—most recent bills)
3. Passport
4. PAN Card
5. Income proof (in some cases)
1. Salary Slips
2. Income tax return files.

Note: It is best to keep a set of copies along with the originals and also a couple of copies of your passport-size photos in case there is another form to be filled out.

If not an FD Credit Card, you can also opt for a loan against FD. Know more from the linked page.