Credit Card Against FD

A credit card against fixed deposit is a card offered by banks to customers who maintain a fixed deposit account with them. In essence, the FD acts as collateral against which the bank provides a credit card. In case the cardholder defaults on their payments, the bank can recover the amount from the fixed deposit.

This type of card is particularly beneficial for individuals who might not have a credit history or those who have a low credit score. It allows them to enjoy the benefits of a credit card without going through rigorous eligibility checks that typically come with regular credit card applications.

Many banks in India offer credit cards against fixed deposits. Some of the prominent ones include:

• State Bank of India (SBI)
• ICICI Bank
• Kotak Mahindra Bank
• IDFC First Bank
• Axis Bank
• SBM Bank

As of 2024, the best credit cards against FD based on rewards, interest rates, and customer feedback are listed below

A credit card against FD offers a robust solution for those who might find it challenging to get a regular credit card. It not only provides financial flexibility but also aids in establishing a healthy credit score. If used wisely, it can be a valuable financial tool in one's arsenal. To get into further detail we have elaborated the features and benefits of the credit cards offered by banks against fixed deposits.

1# IDFC Fixed Deposit Credit Card

The IDFC First Wow credit card operates on a fixed deposit foundation, requiring a minimum deposit of Rs. 5000 for eligibility. This card generously rewards users with points for virtually every transaction, and these points come with the added advantage of no expiration date. Cardholders can enjoy dining privileges, savings at over 3,000 wellness centers, on-the-road support, and more. A standout benefit of this card is the absence of foreign exchange markup fees on international expenses.

Features & Benefits of IDFC WOW Card

• Secured credit card for which you must have an FD of at least Rs. 5000
• 4x RPs on all spends and reward points do not expire
• Up to 5% cash back on the first EMI transaction
• Up to 20% discount at over 1500 restaurants
• Up to 15% discount at over 3000 health and wellness centers
• 1% fuel surcharge waiver
• Rs. 1399 worth of complimentary roadside assistance
• No forex markup fees are charged on foreign currency spend

2# SBI Credit Card Against Fixed Deposit

The SBI Unnati Credit Card is anchored to a fixed deposit of a minimum of Rs. 25,000. For the initial four years, there's no annual fee, but from the fifth year onward, a modest charge of Rs. 499 is applicable. This card boasts an array of advantages that can be beneficial if you are looking to get an SBI credit card on FD.

Features & Benefits of SBI Unnati Credit Card

• 1 Reward Point on every Rs. 100 spent on the card.
• A cashback of Rs. 500 on achieving the milestone spent.
• 1% fuel surcharge waiver.

3# ICICI Credit Card Against FD

The ICICI Bank Instant Platinum Card, a secured credit card, requires a backing of a fixed deposit of at least Rs. 20,000. Packed with a plethora of perks, this card offers rewards, entertainment, and dining privileges, among other benefits. This ICICI bank credit card on FD allows you to get complimentary movie tickets as well.

Features & Benefits of ICICI Bank Instant Platinum Credit Card

• 2 PAYBACK Points on every spend of Rs. 100.
• A discount of 25% on movie tickets on BookMyShow.
• Savings of 15% or more on dining bills under the ICICI Bank Culinary Treats Programme.

4# Axis Bank Credit Card Against FD

The Axis Bank Insta Easy Credit Card, equipped with chip and pin technology, is issued against your Fixed Deposit held with Axis Bank. With no annual fee, it's an optimal choice for regular shoppers. Ideal for those seeking a predetermined credit limit without the burden of annual or joining fees, this Axis Bank offering is designed to meet specific needs.

Features & Benefits of Axis Bank Insta Easy Credit Card

• Up to 80% of the FD deposit amount available as the credit limit
• Cash withdrawal for up to 100% of the credit limit
• 50-day free credit (in the case of no outstanding balance)
• 1% surcharge waiver on fuel purchase pan-India
• 15% off on partner restaurants in India

5# OneCard Against FD

OneCard, in collaboration with SBM Bank India, delivers a digital-first credit card experience. Showcasing a sleek metal design, OneCard is entirely managed through the OneCard app. This digitally-driven card is equipped with cutting-edge functionalities and distinct features. What's more, it comes with the added perk of being free for life.

Features & Benefits of One Card against FD By SBM Bank

• 1 reward point on every Rs. 50 spent via this credit card. For purchase amounts below Rs. 50, fractional points will be credited. For example, if you spend Rs. 25 on a recharge, 0.5 reward points will be credited.
• 5X reward points on top 2 spend categories. To qualify, you must make purchases across at least 3 categories in a month. From these, the top 2 categories would be eligible for 5X rewards.
• Redeem earned reward points without any charges.
• No Expiry Date: Reward points do not expire and have lifetime validity.

6# Kotak Fixed Deposit Credit Card

Experience the Kotak 811 #DreamDifferent Credit Card's perks like interest-free cash withdrawals, rewards on every purchase, a credit limit that extends to 90% of your term deposit, and a lifetime-free credit card. Embrace a distinctive way to manage your finances with this offering.

Features & Benefits of Kotak Bank 811 #DreamDifferent Credit Card

• No Joining or Annual Fees.
• Earn 500 bonus reward points on Activation + Rs. 5000/- spends in the first 45 days of card setup.
• Earn rewards on daily spending. [2 reward points against every Rs. 100/- of online spends, 1 reward point against every Rs. 100/- of other* spends]
• Spend Rs. 75.000/- in a year and get Cash Back of Rs. 750/- or 4 free PVR tickets. 
• Fuel and Railway surcharge waiver

Generally, the eligibility criteria for obtaining a credit card against FD are relatively lenient compared to regular credit cards:

• The applicant should have an FD with the respective bank.
• The minimum FD amount varies between banks but is typically around INR 20,000 to INR 25,000.
• The term of the FD should usually be at least 6 months.
• The cardholder might not require a separate income proof, as the FD serves as collateral.
• No credit check is generally needed, making it suitable for those with low or no credit score.

Secured credit cards present numerous benefits in the longer run:

• Credit Establishment: For those new to credit or with a limited credit background, secured cards are gateways to build a favorable credit record. Timely payments can pave the way for future credit opportunities.
• Credit Restoration: Individuals with past financial challenges can use secured cards as a tool to enhance their credit scores by consistently demonstrating fiscal responsibility.
• Credit Accessibility: They serve as a boon for those sidelined by conventional banks due to inadequate credit history. The deposited collateral ensures banks provide these individuals a credit avenue.
• Financial Prudence: Such cards encourage judicious spending, as they tie credit limits to the deposit amount. This practice ingrains budgeting and nurtures sound financial habits.
• Graduating to Unsecured Credit: Consistent, responsible secured card usage can unlock doors to unsecured credit options with more attractive features and higher limits.
• Digital Payments Adoption: With digital transaction modes like UPIs gaining traction, users find a seamless transition to utilizing secured credit cards for their digital expenditures.
• Promoting Financial Inclusivity: These cards democratize financial access. They combine ease of use, clarity, and education, enabling individuals to stride towards a more secure financial horizon.