What is a Credit Card Against Fixed Deposit?

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 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.

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

What is the Eligibility Criteria for a FD-Based 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 avail a fixed deposit credit card.

Why Get a Credit Card Against FD?

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

  • Credit limit on the card depends on the FD amount (usually between 80-90%) and is not decided by the bank
  • 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
  • Credit card application does not require an income proof
  • Fixed deposit continues to earn interest till maturity

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

Visit the Finserv MARKETS website or app to check out some of the top 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!

Frequently Asked Questions About Credit Card Against Fixed Deposit

  • ✔️What is FD against credit cards?

    A credit card against 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.

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Finserv Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premium!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!