Secured Credit Card Against FD: How to Apply, Eligibility, Benefits

Secured Credit Card Against FD: How to Apply, Eligibility, Benefits

Secured Credit Card Against FD


Opting for a credit card in lieu of fixed deposits (FDs) is a better option for those who cannot get a credit card due to reasons like low credit score, low income, etc. Through FDs, not only can you get guaranteed returns, but you can also benefit from a secured credit card. Let’s explore how to obtain a credit card against FD. Fixed deposit investment is one of the most popular options in India. Apart from this, you can also opt for a credit card against FD. With this credit card, you can build or improve your credit score.

Secured Credit Cards Against Fixed Deposits

A secured credit card against fixed deposit (FD) is a financial product offered by banks like SBI and SBM Bank (India). The special thing about this credit card is that your FD acts as collateral and you keep getting interest on it. One thing to note is that the credit limit of this credit card is generally around 80% to 90% of the FD amount.
If a customer is unable to pay his monthly credit card bill, the bank can use the FD amount to settle the outstanding amount. The fees and charges associated with secured credit cards obtained against FDs are often lower than unsecured credit cards, and these credit cards are relatively easy to get approved.

Who Can Apply?

In India, banks issue credit cards against fixed deposits only to Indian residents. The following individuals are not eligible to avail of this facility:
Hindu Undivided Families (HUF)
Minors (below 18 years of age)
Foreign nationals
Third-party firms
Partnership firms
Tax saver fixed deposit customers
NRI fixed deposit customers
Additionally, credit cards against fixed deposits are not issued to those fixed deposits that are already pledged (i.e., fixed deposits against which a loan/overdraft has been taken).

Applying For Credit Card Against Fixed Deposit Can Be An Ideal Option For

Individuals with low income.
People with poor credit history or low credit scores.
Those with irregular income streams.
Individuals without income proof.
Households seeking financial flexibility.
Individuals who have recently started working.

Benefits of Credit Cards Against Fixed Deposits

The benefits of obtaining a credit card against a fixed deposit are particularly significant for customers with poor credit history or irregular income. Acquiring a credit card can be challenging for these individuals due to the risk banks face regarding potential non-performing assets (NPAs).
In such cases, customers who already have a fixed deposit can leverage it to obtain a credit card. By using their existing fixed deposit as collateral, they mitigate the risk for the bank, making it easier for them to secure a credit card despite their credit history or income irregularities.

Highlights of Credit Cards:-

Following are some of the highlights of such credit cards:
-Credit limit is not decided by the bank but depends on the fixed deposit amount of the customer.
-Since the card is a deposit protected one, fees are low or zero at some banks
-Lower interest rates than unsecured credit cards
-No income proof required
-No cumbersome paperwork required

Best Safe Option Instead of Fixed Deposit in India

Credit Card

Credit Card Name = Minimum Fixed Deposit Amount
Step Up                          – ₹2,000
SBI Unnati                      – ₹ 25,000
ICICI Instant Platinum     – ₹ 20,000
Assure Card                   – ₹ 25,000
Insta Easy Credit Card   – ₹ 20,000

 Specialty with step up card:

 -Credit Limit (100% of FD amount)
-No joining face (₹200 for ₹2,000)
-6.50% interest on fixed deposits
-Helps in building credit score / building credit score
-A completely digital application process
-100% pre-owned

With SBI Unnati specialty:

-No charges for first 4 years
-₹ 499 annual fee is charged from the 5th year onwards
-Rewards etc. per ₹ 100 spent
-1% surcharge waived on fuel purchases up to ₹ 500 – ₹ 3000
can be used worldwide


-2 PAYBACK POINTS for every ₹100 spent
-internationally recognized
-No joining or annual fees

With Assure Card:

-Credit Limit – 80% of fixed deposit amount
-Cash withdrawal limit is up to 100%
 – Surcharge waived on fuel purchases up to ₹ 400 – ₹ 5000
-Annual fee waiver of ₹ 500 (on expenditure of ₹ 6,000 in the first year and ₹ 35,000 in the subsequent year)
-Interest free credit up to 50 days from date of purchase
-In-built personal accident death cover

With Insta Easy Credit Card:

-Fixed Deposit available as credit limit up to 80% of deposit amount
-Cash withdrawal up to 100% of credit limit
-Up to 50-days interest-free credit (in case of no outstanding balance)
-1% surcharge waiver on fuel purchase
-15% discount at partner restaurants in India

Related Questions:-

Q.1Which bank offers credit card against fixed deposit?
Answer: There are many banks that offer credit cards against fixed deposits. Some of these are being explained below:-
-SBI Unnati Credit Card
-Kotak Mahindra Bank Aqua Gold Credit Card
-ICICI Instant Platinum Credit Card
-Axis Bank Insta Easy Credit Card
-Bank of Baroda Assure Credit Card
Q.2 What is the difference between secured and unsecured credit cards taken against FD?
Answer: Unsecured credit cards are issued without any collateral/security. Such credit cards carry higher fees and are offered only to those who meet the eligibility criteria of the respective bank.
To get an unsecured credit card, it is very important that you have a regular source of income and a good CIBIL score. On the other hand, the credit card taken against FD is a secured credit card because in it your fixed deposit is kept as collateral/security. You can apply for this credit card even with low or no CIBIL score or income proof. At the same time, even if the customer commits a default, the bank has the option to pay the missed or delayed payments through FD.
Q. 3 Can citizens living abroad get a credit card in lieu of FD?
Answer: No, banks do not provide this facility to citizens living abroad.
Q.4 Can I use 100% of FD amount as credit limit?
Answer: Generally, banks provide up to 80% of the fixed deposit amount as credit limit.
Q.5 Can I use my credit card against FD to withdraw cash from ATM?
Answer: Yes, most banks provide cash withdrawal facility through ATM. The limit on secured credit cards issued against FD is usually 80%-90% of the FD amount.
Q.6: I do not have income proof. Can I get a credit card?
Answer: Yes, if you take a credit card in lieu of FD then you do not need to submit income proof.
Q.7 What should be the fixed deposit amount for taking a credit card?
Answer: The minimum FD amount for a secured credit card varies from bank to bank.

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