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Learn how a credit card against an FD helps you access credit easily, build your score, and keep your savings secure.
Last updated on: Aug 04, 2026
Using a credit card against a fixed deposit lets you access credit while keeping your savings intact. It’s a great choice if you’re new to credit or want to improve your credit score with minimal risk. By pledging your FD as collateral, you get all the perks of a regular credit card—rewards, cashback, and flexible EMI options—without needing an established credit history. Meanwhile, your deposit continues earning interest, helping you build credit confidence safely.
A credit card backed by a fixed deposit is a secured credit card where your FD acts as collateral. Since the deposit provides security to the issuer, approval is generally easier and may not require a strong credit history. These cards are often suitable for first-time users, students, or individuals looking to build their credit profile. The credit limit is usually linked to the FD amount, while the deposit continues to earn interest.
One of the key advantages of an FD-backed credit card is that it combines credit access with rewards, cashback, and lifestyle benefits available on select card variants.
These cards provide different types of value, ranging from reward points and cashback to travel, entertainment, and UPI-payment benefits, while helping cardholders build a credit history through responsible usage.
Choosing the right credit card against a fixed deposit helps you enjoy credit access, rewards, and savings growth at the same time. Here are some of the best credit cards against FDs you can apply for on Bajaj Markets:
| Credit Card | Key Features | Benefits |
|---|---|---|
Zero joining and annual fees. Fixed Deposit-backed card requiring no credit history or income proof. |
Enjoy zero forex mark-up fees and earn up to 4x reward points on every spend |
|
A digital-only card backed by an FD, earning up to 7.25% interest annually. |
Get 1% cashback on UPI transactions via the IDFC FIRST Bank app and 25% off (up to ₹100) on Paytm movie bookings |
|
FD-backed credit card with a complimentary 30% off voucher on eligible Taj Hotels stays, dining, and spa bookings. |
Get up to 7% cashback as NeuCoins on eligible spends. Additionally, get 1% back as NeuCoins on non-partner retail spends and up to 1% NeuCoins back on UPI payments. |
|
Lifetime-free RuPay card backed by a Fixed Deposit (earns up to 7% interest). |
Get savings of up to ₹19,000 annually on spends across Swiggy, Zomato, BookMyShow, and other platforms. |
Disclaimer: The details mentioned above are subject to change based on the issuer’s latest terms and policies.
FD-based credit cards allow you to access a credit limit against a fixed deposit while continuing to earn interest on the deposit. Depending on the card variant, you may get rewards, cashback, travel privileges, UPI-linked payments, and credit-building benefits. Some options are also available as a lifetime free credit card.
The IDFC FIRST WOW! Credit Card is an FD-backed card designed for individuals looking to build credit while enjoying travel and rewards benefits. It comes with no joining or annual fees.
The IDFC FIRST Bank EA₹N Credit Card is a virtual FD-backed card focused on cashback and digital payments. It is suitable for users who frequently use UPI and online payment channels.
The FD-backed Tata Neu Plus Credit Card combines secured credit access with rewards across the Tata ecosystem. It is suitable for users who want cashback-style rewards through NeuCoins.
The SBM ZET Credit Card is a RuPay-based FD-backed card designed for first-time users and individuals looking to build a credit profile through everyday spending. It is available as a lifetime free credit card.
Getting a credit card against a fixed deposit is generally simpler than applying for a regular unsecured credit card. Since the FD serves as collateral, issuers may have relaxed requirements for credit history and income documentation.
To apply for an FD-backed credit card, you typically need to meet the following requirements:
Residency - Indian resident with valid address proof
Age - Minimum 18 years
FD status - Active fixed deposit with issuing bank
Minimum FD - Typically from ₹5,000 (varies by issuer)
Credit history - Accepts first-time borrowers or limited credit history
Income proof - Often not required (FD serves as security)
The following documents are commonly required when applying:
Identity proof: PAN Card, Aadhaar Card, Passport, or other valid government-issued ID.
Address proof: Aadhaar Card, Passport, utility bill, or other accepted address proof.
Fixed deposit details: Information related to the FD linked to the credit card application.
KYC documents: Any additional documents required to complete the issuer's verification process.
Note: Eligibility requirements, minimum FD amounts, and documentation may vary across issuers and card variants.
A credit card against a fixed deposit can be suitable for individuals who are new to credit, including someone looking for a student credit card alternative. Since the fixed deposit acts as security, approval requirements are generally different from those of a regular unsecured credit card.
| Features | Credit Card Against Fixed Deposit | Regular Credit Card |
|---|---|---|
Credit Limit |
Usually linked to the FD amount and may range from 75% to 100% of the deposit value |
Based on income, credit profile, and issuer policies |
Collateral Required |
Yes, a fixed deposit is required as security |
No collateral required |
Approval Basis |
Primarily based on the fixed deposit and issuer criteria |
Based on income, credit score, repayment history, and eligibility |
Documentation |
Generally requires basic KYC and FD-related details |
May require income proof, KYC documents, and additional verification |
Interest on FD |
The fixed deposit continues to earn interest during the card tenure |
Not applicable |
Credit History Requirement |
Usually suitable for individuals with limited or no credit history |
A good credit profile may improve approval chances |
Risk Level for Issuer |
Lower, as the FD acts as collateral |
Higher, as the card is issued without security |
Both card types may offer rewards, cashback, and other benefits. However, a credit card against an FD allows you to retain your deposit while accessing a credit limit. It can also help build a credit history through responsible usage and timely repayments. Before applying, compare the fees, rewards, features, and cash withdrawal charges applicable to the card variant.
Applying for the best credit card against an FD on Bajaj Markets is quick, digital, and hassle-free, allowing you to get instant access to credit with minimal paperwork. Here’s how you can apply smoothly:
Click the ‘Check Eligibility’ button on this page
Enter your mobile number and occupation details in the form
Accept the terms and conditions to proceed further
Enter the One-Time Password (OTP) sent to your registered mobile number for verification
Review and confirm pre-filled details such as your PAN number, name, date of birth, and email ID
Provide your income information and residential PIN code accurately
Click on ‘Check Offers’ to view eligible FD-backed credit card options
Compare and select the credit card that best suits your needs
Click ‘Submit’ to complete your application
After you submit your application, you’ll get a confirmation and a call from Bajaj Markets or the bank to verify your details and finalise approval.
Getting a credit card against a fixed deposit is suitable for different types of users who want to access credit with minimal risk and effort. Here’s who should consider applying:
If you’re new to credit and don’t yet have a credit score, an FD-backed credit card offers an easy way to build your credit history. It ensures smooth approval without complex eligibility checks.
If your CIBIL score is low or your repayment history isn’t strong, this card helps you rebuild credibility. Regular, on-time payments can steadily improve your credit profile.
An FD-backed card offers faster approval as your fixed deposit serves as security. You can access credit quickly without heavy documentation or long waiting periods.
If you prefer financial stability, this card gives you the benefits of credit while keeping your savings safe. Your FD continues to earn interest, ensuring steady returns.
If you don’t have salary slips or income statements, this card is a practical solution. The bank relies on your FD instead of income documents for approval.
Students or homemakers who lack a steady income can get easy access to credit with an FD-backed card. It helps them manage expenses responsibly while starting to build a credit record.
Senior citizens with fixed deposits can apply for these cards to enjoy easy access to credit. It provides flexibility for emergencies or regular expenses without liquidating savings.
You can apply for the best credit card against an FD in India if you can place a fixed deposit with a bank and meet basic KYC requirements. Since the card remains secured against your deposit, lenders focus more on your FD amount than your credit profile.
The following applicants typically qualify:
Individuals with low or no credit score: If your credit score is weak, thin, or completely absent, the best credit card on FD offers an accessible entry point because the fixed deposit reduces the lender’s risk exposure
New-to-credit applicants: If you have never taken a loan or held a card before, this option helps you enter the formal credit system without facing rejection due to a lack of repayment history
Existing FD holders: If you already maintain a fixed deposit with a bank, you can convert it into an FD-based credit card quickly, as the bank already holds your collateral
Students and homemakers: Even if you do not earn a regular income, you can still apply, provided you open and maintain the required deposit amount
Applicants from restricted employment categories or locations: Even if your employer or residential area falls under internal bank restrictions, you may still qualify because the deposit secures the card
Therefore, eligibility primarily depends on your ability to open and maintain a fixed deposit rather than your income stability or past borrowing record.
You may choose a fixed deposit credit card not only because of credit challenges but also because it offers practical financial advantages with lower approval barriers. Since the bank secures the card against your deposit, the risk reduces significantly, and this improves your approval probability.
Easier approval: Because your FD acts as collateral, banks approve applications faster and with fewer income-related conditions. As a result, you can often complete your FD credit card application process with minimal documentation and limited credit scrutiny.
Credit score building: When you use the card responsibly and repay dues on time, you build a positive repayment record. Over time, this strengthens your credit profile and improves your eligibility for unsecured cards.
Higher credit limit: Most banks offer a credit limit ranging between 75% and 90% of your deposit value. Consequently, a larger FD can translate into a comparatively higher limit than many entry-level unsecured cards.
Interest continuity: Importantly, your fixed deposit continues to earn interest throughout the tenure. Therefore, you retain savings growth while enjoying full card features, including digital payments, EMI conversion options, and reward benefits.
If you want structured access to credit with controlled risk, a credit card against a fixed deposit offers a balanced and disciplined starting point.
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Yes, a credit card against an FD is a good option if you want to build or improve your credit score with minimal risk. It provides the same benefits as a regular card while your fixed deposit continues earning interest, ensuring both credit access and financial security.
Yes, you can get a credit card through an FD, as it serves as collateral for the bank. This reduces approval requirements, making it easier for individuals with limited or no credit history to access credit while maintaining their FD’s growth and interest benefits.
Yes, getting a credit card on an FD is simple and quick since it’s a secured card. Approval doesn’t rely heavily on your credit score or income proof, as your fixed deposit ensures security, making it one of the easiest credit options available.
A credit card against an FD offers easy approval, lower risk, and continued FD interest earnings. It also helps build or repair your credit score, provides reward points and cashback, and eliminates the need for extensive documentation or high-income proof during the application process.
The credit limit for a credit card issued against an FD typically ranges between 75% and 90% of the FD amount. Some issuers may offer higher limits based on your deposit value and repayment behaviour, ensuring flexible credit access while keeping financial security intact.
Credit cards against FD are generally available for regular, cumulative, and auto-renewal fixed deposits. To qualify for an FD-backed credit card, your fixed deposit must be with the issuing bank and usually have a tenure of at least six months.
Interest rates on credit cards against FD are usually lower than those on unsecured credit cards. Since the FD acts as collateral, lenders face reduced risk and offer more favourable terms, helping you save on finance charges while maintaining good repayment habits.
Most FD-backed credit cards come with minimal or zero processing fees, depending on the issuer. Some banks may charge a small administrative fee, but these costs are usually much lower than those for regular unsecured credit cards, keeping overall expenses affordable.
An FD-backed credit card is typically issued within 1–3 working days after verification. Since your FD already serves as collateral, approval is faster and requires minimal paperwork, allowing you to start using your credit card almost immediately after submission.
When your fixed deposit matures, the bank may block or close your credit card against the FD unless you renew the deposit or provide alternate collateral. Since the card remains linked to your FD, the credit limit usually reduces to zero if you withdraw the funds. Therefore, you must renew the deposit to continue using the facility.
An FD-based credit card is worth considering if you want guaranteed approval and a structured way to build your credit profile. Since the card remains secured, approval is easier, and risk is controlled. However, if you already qualify for unsecured options, you may compare features before choosing the best FD credit card.
A credit card secured by a fixed deposit lets you access credit without liquidating your savings, while the FD continues to earn interest. It’s especially useful for first-time credit users, people with limited or no credit history, and anyone seeking a lower-risk, easier approval route to a credit card. Responsible use—keeping balances low and paying on time—helps you build or improve your credit history. Additionally, many FD-backed cards offer the usual card benefits (rewards, cashback, EMI options) and may require less documentation since the FD acts as collateral.
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