Credit Card Against FD

What is a Credit Card Against FD

Many leading banks offer credit cards against fixed deposits. These are often termed secured credit cards since the FD is held as collateral against which the credit card is issued. In the case of non-payment of credit card bills, the issuing bank is empowered to liquidate the linked fixed deposit and recover the unpaid dues. 

One of the advantages of these credit cards is that even applicants who don’t meet the credit score or minimum income criteria can apply for a credit card against an FD. Furthermore, the credit limit on such cards is set based on the amount of FD held as collateral. Usually, issuing banks offer credit limits ranging from 80% to 90% of the principal FD amount. 

Some of the Best Credit Cards Against Fixed Deposits in India

There are plenty of secured credit card options in India. Here’s an overview of some of the top credit cards against fixed deposits that you can avail in 2023.

1. Bajaj Finserv RBL Bank Freedom SuperCard

The Freedom SuperCard is a co-branded credit card issued by RBL Bank in association with Bajaj Finserv. Available for a low annual fee of just ₹999 plus GST, the card is issued with a credit limit that’s 100% of the FD amount. Here are some of the key features of this secured credit card. 

• 2,000 bonus reward points on spending at least ₹2,000 within the first 30 days of card ownership 

• Interest-free cash withdrawal for the first 50 days of card ownership

• Annual fee waiver on spending at least ₹75,000 during a year 

• 2 reward points for every ₹100 spent online except on insurance, education, rent payments, utilities and wallet loads

• 1 reward point for every ₹100 spent on shopping 

2. SBI Card Unnati 

An entry-level secured credit card, the SBI Card Unnati is offered for a nominal annual fee of just ₹499 plus GST. However, the annual fee is waived for the first four years of card ownership. Check out some of the key benefits of this credit card. 

• Cashback of ₹500 on spending at least ₹50,000 within the first 15 days of card ownership

• 1 reward point for every ₹100 spent on the credit card

• 1% fuel surcharge waiver on fuel transactions between ₹500 and ₹3,000

• Card is issued against a minimum FD of at least ₹25,000 held with the State Bank of India

 3. ICICI Bank Instant Platinum Credit Card

The Instant Platinum Credit Card is a credit card that’s issued against a fixed deposit of at least ₹20,000 held with the bank. ICICI Bank doesn’t levy any joining or annual fee on this credit card, making it one of the few free secured credit cards in India. Here’s a list of the card’s features and benefits. 

• 25% discount, subject to a maximum of ₹100 each month, on movie tickets booked through BookMyShow

• 2 PAYBACK points on every ₹100 spent on the card 

• Low interest rate of just 2.49% per month 

 4. Bank of Baroda Prime Credit Card 

The Prime Credit Card from Bank of Baroda is a feature-rich card that offers multiple exciting benefits. The card is issued for all applicants who hold a minimum FD of ₹15,000 with the bank. Let’s take a look at some of the key benefits. 

• 1 reward point for every ₹100 spent on select transactions 

• 2 reward points for every ₹100 spent on all other transactions

• Zero joining and annual fees 

• 1% fuel surcharge waiver on all fuel transactions ranging from ₹400 to ₹5,000

 5. Axis Bank MY ZONE EASY Credit Card 

Axis Bank issued this credit card against FDs of a minimum of ₹15,000. The MY ZONE EASY Credit Card from offers a host of benefits to the cardholder. One of the highlights of this card is its joining and annual fee, which is very nominal at just ₹500 plus taxes. Some of the other benefits offered by the MY ZONE EASY Credit Card are listed below. 

• Cashback of 25%, subject to a maximum ₹1,000 in a year, on movie tickets booked online or offline

• 1% fuel surcharge waiver on fuel transactions ranging between ₹400 and ₹4,000

• 4 reward points for every ₹200 spent on the card 

• 15% dining discount on restaurants affiliated with Axis Bank’s Dining Delights program 

Features and Benefits of FD-Based Credit Cards

Credit cards issued against fixed deposits offer plenty of exciting features and benefits. Let’s take a glimpse at a few of the key ones. 

• FD-Based Credit Limit

The credit card limit is decided based on the amount of FD against which the card was availed. Generally, banks provide limits that are anywhere from 80% to 90% of the fixed deposit. However, some of them also offer a credit limit that’s 100% of the FD.  

• Low Fees 

Compared to unsecured credit cards, the charges applicable to secured credit cards are very nominal. 

• Minimal Documentation 

Since you already have an existing relationship with the bank, you don’t have to submit any documentation to avail a credit card against your FD. 

• Builds Credit Score

Cardholders with low or no credit scores can use the secured credit card to build credit history and boost their scores. 

Eligibility Criteria for an FD Credit Card

To get a credit card against an FD, you need to satisfy certain eligibility criteria. Here’s a quick look at what they are.

• You must be a resident Indian individual.

• You must have an active fixed deposit with the card issuing bank. 

• Your FD must be free from other liens, i.e., not already marked as collateral for other credit facilities.