When it comes to building a credit history or getting a credit card without a high income, a Credit Card Against Fixed Deposit is one of the easiest and most reliable options. This type of card allows you to enjoy the convenience of a credit card by pledging your fixed deposit (FD) as collateral. It’s ideal for people who don’t meet the eligibility criteria for regular credit cards, have no credit score, or want a secured option with lower risk.

In this guide, we’ll explore what a Credit Card Against Fixed Deposit is, how it works, the benefits, eligibility criteria, application process, and the top banks offering this facility in India. Towards the end, we will also explain the Zet Rupay Credit Card, a notable option in this segment.

What is a Credit Card Against Fixed Deposit?

A Credit Card Against Fixed Deposit is a secured credit card whereby your fixed deposit serves as collateral to the bank. Instead of being offered a credit limit based on income or credit history, the bank makes available to you a percentage of the fixed deposit amount (generally between 75% and 90%). Say you have a 50,000 FD. A credit limit of 37,500 to 45,000 may be given on your card against that FD. Since this is collateral, there will be low risk, and in most cases, it will get approved if all basic requirements are met.

How Does a Credit Card Against a Fixed Deposit Work?

The process is simple:

1. Open an FD with a bank that offers secured credit cards.

2. Apply for the credit card against that FD.

3. Get approval instantly (in most cases) as the bank already has security.

4. Use the card just like a regular credit card.

5. Pay your bills on time to avoid interest charges and to build your credit score.

If you default on payments, the bank can liquidate your FD to recover the dues.

Benefits of Credit Card Against Fixed Deposit

Here are the significant advantages:

• Easy Approval – No strict credit score or income requirements.

• Credit Score Building – Perfect for those new to credit.

• Lower Interest Rates – Usually cheaper than unsecured credit cards.

• Guaranteed Eligibility – As long as you have an FD with the bank.

• Rewards & Cashback – Many secured cards offer benefits similar to those of regular cards.

• Flexibility – Use it for online shopping, bill payments, and travel bookings.

Read Axis Bank Credit Card Apply NOW Easy Approval 

Eligibility Criteria for Credit Card Against Fixed Deposit

While requirements vary from bank to bank, standard criteria include:

• Minimum FD Amount – Usually ₹10,000 or more.

• FD Tenure – Minimum of 6 months to 1 year.

• Age – Must be 18 years or older.

• KYC Compliance – PAN, Aadhaar, and address proof required.

Top Banks Offering Credit Cards Against Fixed Deposits in India

• Best Credit Card Against FD Easy Approval
• Best Credit Card for College Students
• American Express Cobalt Card
• Get Bajaj Insta EMI Card – Complete Guide 

Here are some popular banks and their offers:

1. SBI Advantage Plus Card

• Minimum FD: ₹25,000

• Credit limit: Up to 85% of the FD

• Rewards program and fuel surcharge waiver

2. ICICI Bank Instant Platinum Card

• Minimum FD: ₹20,000

• Credit limit: Up to 90% of the FD

• No annual fee for the first year

3. Axis Bank Insta Easy Card

• Minimum FD: ₹20,000

• Credit limit: 80%–85% of FD

• Complimentary airport lounge access

4. HDFC Bank MoneyBack Secured Card – Apply for Bajaj EMI Card

• Minimum FD: ₹10,000

• Credit limit: 80% of FD

• Cashback and reward points on every spend

5. Kotak Mahindra Aqua Gold Card

• Minimum FD: ₹25,000

• Credit limit: Up to 80% of the FD

• No annual fee if spending criteria are met

Application Process for Credit Card Against Fixed Deposit

Follow these steps:

1. Open an FD with the bank of your choice.

2. Apply for the secured credit card.

3. Provide KYC documents (if not already linked to the FD).

4. Get instant approval in most cases.

5. Receive your card within a week.

Things to Keep in Mind Before Applying

• Your FD will be locked as collateral.

• Premature withdrawal of the FD is not allowed unless the card is closed.

• Missing payments will affect your credit score.

• Annual fees vary – check before applying.

Best Practices to Use a Credit Card Against a Fixed Deposit

• Always pay the full bill amount before the due date.

• Keep credit utilisation below 30% to improve your credit score.

• Use the card regularly for small purchases to build a payment history.

• Avoid cash withdrawals as they come with high charges.

Why a Credit Card Against a Fixed Deposit is Ideal for Beginners

For someone just starting in the credit world, a Credit Card Against Fixed Deposit is an excellent stepping stone. Since the bank’s risk is minimal, they are more willing to approve your application, and you get a chance to demonstrate responsible credit usage.

Over time, as your credit score improves, you can apply for higher-limit unsecured credit cards without pledging collateral.

Zet Rupay Credit Card – A Notable Option

The Zet Rupay Credit Card is a secured credit card that has gained popularity among those looking for a Credit Card Against a Fixed Deposit. It works just like other FD-backed cards but comes with some unique features:

• FD-based Security – Requires an FD for approval.

• No Credit History Needed – Ideal for first-time users.

• Rupay Network Benefits – Compatible with UPI for online transactions.

• Rewards Program – Earn cashback and points on every purchase.

• Low Annual Fee – Affordable compared to other cards.

This card is particularly useful for those who prefer domestic transactions and want UPI-linked credit card benefits.

Conclusion

The Perfect Credit Card for a First-Time Credit Card Holder Going Up to an Aged and Qualified Credit Holder on Deposits If You Want Credit Cards Without Any Nuisance of High Income or Excellent Credit History Ladder, It’s Safe, It’s Easily Obtainable, It Helps Build a Strong Credit Profile With innovative features like UPI compatible Zet RuPay Credit Card and lucrative reward programs optioned by it etc. If you’ve just stepped into college or are in that first credit card phase, or even if you are looking to rebuild your ‘defaulter’ score, this option calls for some serious consideration.