Building a credit history and obtaining a credit card with a low income might not be an entirely easy task; however, using a credit card against a Fixed Deposit would render it simpler. One of the most comfortable methods of using a credit card is to do so against a fixed deposit. Hence, indirectly, availing the benefit of a credit card by offering the fixed deposit as security is termed as ‘Credit Card against Fixed Deposit.’ These are particularly beneficial for individuals who do not qualify for regular credit cards, have no credit rating, or desire a secured alternative 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 granted on your card against that FD. Since this is collateral, the risk is low, and in most cases, it will be approved if all basic requirements are met.
How Does a Credit Card Against a Fixed Deposit Work?
The process is simple:
Open an FD with a bank that offers secured credit cards.
Apply for the credit card against that FD.
Get approval instantly (in most cases), as the bank already has the necessary security.
Use the card just like a regular credit card.
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 a Credit Card Against a 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 – Typically, more affordable 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:
Open an FD with the bank of your choice.
Apply for the secured credit card.
Provide KYC documents (if not already linked to the FD).
Get instant approval in most cases.
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 can negatively impact 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 often come with high fees.
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 handy 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.
Disclaimer: This article on Credit Card Against Fixed Deposit is meant for educational and informational purposes only. It does not provide financial advice or endorse any specific bank or product. Terms, eligibility, and interest rates may vary according to each bank’s policy. Readers should verify details with the respective bank before applying for a credit card.
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