LOANS

INSURANCE

INVESTMENTS

CARDS

eStore

Discover

MY OFFERS

CUSTOMER PORTAL

ABOUT US

CONTACT US

✓ Fast Processing ✓ Great Discounts & Offers ✓ Easy EMI Facility | Apply for Credit Card now!

Credit Card on FD

When it comes to being risk-averse, a fixed deposit is undoubtedly one of the most secure modes of investment. Apart from helping you save your hard-earned money, it also lets you earn a higher rate of interest than on savings deposits while providing the flexibility of tenure. However, that is not all! You can also use your fixed deposit to apply for a credit card.

Your linked FD can serve as collateral and be used to recover the outstanding balance if you miss paying your credit card bill. A credit card against fixed deposit is an attractive solution for availing the benefits of a credit card when you are unable to meet the eligibility requirements for an unsecured credit card. Such a card also helps to build or improve your credit score.

How to Apply for a Credit Card against FD?

  • Already have an FD with the Bank
    In this case, you simply need to visit your bank branch and apply for a credit card against your existing FD. If your bank allows, you can easily apply for a credit card against FD online by visiting the website or mobile application.

  • Don’t Have an FD
    In case you do not have an FD yet, you need to first open a Fixed Deposit account. Some banks allow their customers the provision of opening an FD online, for the others you may have to physically visit the branch office.

    Once your FD account is active, you can apply for the best credit card against FD by filling in the paperwork.

To find the best credit card against FD, you can turn to popular banks such as Axis Bank, ICICI Bank, State Bank of India, etc. Some of these banks also let you get instant credit cards against Fixed Deposits. The sum of money, however, may vary from card to card.

Visit the Bajaj MARKETS website or app to check out some of the top credit cards from these renowned banks. You can then compare your options by studying the features and charges. After you have made up your mind, you can apply for the best credit card against FD from the portal itself. So, quit waiting and get yourself the long-pending credit card today!

Eligibility Criteria for an FD Credit Card

The eligibility criteria for getting a credit card against FD may vary from bank to bank. Some banks issue such cards only if you open a fixed deposit with the bank and hold the same as collateral. Others may simply need you to have a minimum amount as FD to apply for credit card. However, if your fixed deposit is already marked as collateral against an overdraft or loan, you cannot use the same to get a fixed deposit credit card.

Documents required for Credit Card against Fixed Deposit

In case you already have a fixed deposit with the financial institute or the bank you may not be required to submit any documents when you apply for a credit card on FD. Your existing documents will be verified.

In case you are applying for a new instant credit card on FD, you will be asked to submit:

  1. Proof of Residence

  2. Proof of Income

Features and Benefits of FD Based Credit Card

Getting a credit card on FD has several advantages. These include:

  • Credit card limit depends on the FD amount (usually between 80-90%) and is not decided by the bank

  • There are many banks that provide a credit card with INR 10,000 as the minimum FD for Credit Card

  • Helps build a credit score

  • Charges for getting a credit card on FD are little, or none

  • Interest rate is lower than unsecured credit cards

  • If you are an existing fixed deposit holder with the bank/ financial institute there is minimal to zero paperwork needed

  • The credit card application does not require an income proof

  • Fixed deposit continues to earn interest till maturity

  • You will be able to earn points/ rewards when you use your FD based credit card

List of Banks Offering Credit Cards Against Fixed Deposits

Let us take a look at the banks that offer Fixed Deposit Credit Card. The table also shows the amount of Fixed Deposit required to apply for an FD based Credit Card:

Name of the Bank

Minimum FD Amount for Credit Card

Bank of Baroda

INR 15,000

ICICI Bank

INR 10,000

Kotak Mahindra Bank

INR 10,000

Axis Bank

INR 10,000

 

Who Should Get A Credit Card Against Fixed Deposit?

A credit card against FD can be applied for by anyone who is willing to deposit a sum of money with the bank. However, it is especially useful for those who:

  • Are unable to secure a credit card

  • Do not have a regular source of income

  • Have a low income

  • Have a poor or no credit history

  • Do not have proof of income

About Credit Cards

Credit Cards & Related to Credit Cards

Resource Centre

Frequently Asked Questions About Credit Card Against Fixed Deposit

✔️What is FD against credit cards?

A credit card against a fixed deposit, as the name suggests, is a card that is issued against a bank fixed deposit. The card functions independently of your FD; however, if you miss paying your credit card bill, your linked FD will work as collateral and be used to recover the outstanding balance. Such a credit card is ideal for people who are unable to meet the eligibility requirements for an unsecured credit card. It also helps to build or improve your credit score.

✔️Which bank gives credit cards against FD?

Axis Bank, HDFC Bank, State Bank of India, etc., offer some of the best FD credit card variants. The minimum amount of money you need to have as a fixed deposit may vary from card to card.

✔️How does FD act as collateral to avail a secured Credit Card?

When you take a credit card against your FD, it is a secured credit card. In case you default in making your credit card payment in time, the bank/ financial institution can recover the outstanding amount from your FD.

✔️Can I use my Credit Card against FD to withdraw cash at ATMs?

Yes, just like other credit cards, you can withdraw cash at an ATM using your FD credit card. The withdrawal can be up to your credit limit.

✔️Is it good to take a credit card against FD?

A credit card against a fixed deposit is a good option if you do not have income proof or do not have a very high credit score. It is an easy-to-acquire credit card that offers quite a few benefits. However, you need to remember that when you take a credit card on FD, the FD amount gets locked for the entire tenure, as the amount acts as a collateral.