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Credit card against FD

Updated on: 21 Dec 2023 | 8 min read

A credit card is a highly preferred payment option. It offers more than 30 days of interest-free credit and allows you to make cashless purchases online and offline. Most credit card banks offer several other perks like cashback and rewards, which increase their popularity. However, being a credit instrument, a credit card is not usually issued to all individuals.


Like getting a loan, credit card eligibility is subject to the applicant’s occupation, gross income, credit score, etc. You can get a credit card even if your previous application has been rejected. Those who do not have a steady income or are new to credit can get access to a credit card using an FD account.


This article aims to answer all your questions on how to get a credit card against a fixed deposit, the eligibility criteria, features, and the banks that offer them.

What is a Credit Card Against Fixed Deposit?

A credit card against FD is a secured credit card that banks offer against your fixed deposit account. Similar to FD loans, you can pledge your fixed deposit as collateral and obtain a credit card against FD. It means that if borrowers do not pay their credit card bills, banks have the right to recover the outstanding balance from their fixed deposit account.

One of the most significant advantages of a secured credit card is that it is available to most individuals regardless of their credit score, income, or occupation. However, eligibility criteria vary from bank to bank.

Generally, banks offer credit cards based on the applicant’s credit score and gross income. They are also called unsecured credit cards since no collateral is on them. FD credit cards are ideal for those with no credit history or low credit scores looking to improve their credit profile.

Depending on the bank, you can avail of a credit card on a minimum fixed deposit of Rs. 10,000. Credit limits typically range from 75% to 85% of the FD value. Therefore, investing more in a fixed deposit will give you a higher credit card limit. Almost all prominent banks in India offer credit cards against fixed deposits.

Features of a Credit Card Against Fixed Deposit

Take a look at the key features of a credit card against FD:

  • It requires minimal documentation and does not require income proof.
  • Most banks offer 75% to 85% of the FD amount as a credit limit.
  • It can help improve your credit score. With a healthy credit score, you can qualify for loans in future.
  • Most credit cards offer rewards and cashback.
  • You will continue earning interest on your fixed deposit.
  • Depending on the bank, the minimum tenure for fixed deposits can be as low as six months.
  • Banks usually offer an interest-free period of 48 to 55 days to pay the credit card bill.
  • You may be able to apply for an FD credit card online with some banks.

Eligibility to Apply for a Credit Card Against Fixed Deposit

The eligibility criteria may vary from bank to bank, however here are a few essential factors to consider:

  • You must be an Indian resident and should be at least 18 years of age (for some banks minimum age required is 21)
  • You should have an FD account with the bank
  • FD tenure should be a minimum of 6 months
  • Depending on the bank, you may need at least Rs 10,000 in your FD account to obtain a credit card against FD

Who should apply for a Credit Card Against a Fixed Deposit?

Getting a credit card is an ideal choice for those who:

  • Need a credit card but are unable to get one the traditional way
  • Have an irregular income
  • Have a poor credit history/no history 
  • Do not have income proof
  • Have an entry-level job (with low income)

What are the benefits of having a credit card against FD?

Here are some of the key benefits of having a credit card against FD:

  • The credit limit is not determined by the bank but rather by the amount of the FD deposit (typically 80% to 90%).
  • Some banks charge a low fee or no fee at all.
  • Interest rates are lower than for unsecured credit cards.
  • No proof of income or credit score is required, but a good credit score can be built by using the card responsibly.
  • The paperwork is fairly simple.

How to apply for a credit card against FD?

For non-FD accountholders

  • To apply for a secured credit card, you must have a fixed deposit account with the respective bank. Hence, you need to either open an FD online or visit the nearest bank branch to open your FD account first, followed by the credit card account.
  • While some credit cards are issued as complimentary for having an FD with the bank, others need to be applied for.
  • Once you open your fixed deposit account with the bank, you can apply for a credit card at the same branch by filling out the application form.
  • You can also apply for the secured credit card online once your FD account becomes active.


For FD account holders

  • If you already have a fixed deposit account with the bank from which you would like to avail the secured credit card, you can apply online by visiting the bank’s website.

Banks That Offer Credit Card Against FD

Here are the details of credit cards against FD offered by a few prominent banks in India:


Bank NameName of the Credit CardMinimum FD AmountKey Features
State Bank of IndiaSBI Unnati Credit CardRs.25,000
Free for the first four yearsThe annual charge is Rs. 499 from the fifth year1 reward point for every Rs.100 spent1% fuel surcharge waiver (on transactions between Rs. 500 – Rs. 3,000)Worldwide acceptanceAdd-on cards for the family
ICICI BankICICI Bank Instant Platinum Credit CardRs.20,000No joining or annual feeWorldwide accessibility2 payback points for every Rs.100 spentDining offers through the ICICI Bank Culinary Treats Programme
Bank of BarodaBank of Baroda Prime Credit CardRs 15,0001% cashback on all spends1% fuel surcharge waived for all fuel transactions between   400 –  5,000 Zero first year and annual fees Free Add-on cards for the family
Axis BankAxis My Zone Easy Credit CardRs 15,00025% cashback on movie ticketsCash withdrawal up to 100% of the credit limit1% fuel surcharge waiver on transactions between Rs. 400 – Rs. 4,000
Central Bank of IndiaCBI Cent Aspire Credit CardRs 20,000The deposits under the Scheme will attract interest at the prevailing card rate. 
Kotak Mahindra Bank811 #DreamDifferent Credit Card OnlineRs.9, 000 (for non-811 saving account customers)Rs. 5,000 (for 811 saving account customers)No Joining or Annual Fees2 reward points for every Rs.100 spent onlineWaiver on Fuel surcharge and railway booking surchargeYou can withdraw cash up to 90% of your total credit limit.
Yes BankYES Prosperity Rewards Plus Credit CardRs 30,0008 Reward Points for every Rs 200 spent on travel and dining1% Fuel surcharge waiver at fuel stations across India for transactions between Rs. 400 to Rs. 5,000
Union Bank of IndiaVISA Gold Credit CardAs per the bank’s discretionEnjoy interest free credit period of 21 to 50 days on your purchases Fuel surcharge will be Reimbursed at 1% of the amount spent on fuel purchase subject to a maximum of 100/- per card per month.Offers on shopping, hotels, car rentals, etc

Documents Required

Applying for a credit card against FD involves minimal documentation.

  • If you already have an FD account with a bank, you don’t have to submit any other documents related to proof of identity or address
  • If you don’t have an FD account, you must open one. While opening an FD account with a bank, you must submit documents such as your identity ( Aadhar card, PAN card, Voter ID Card, passport, electricity bill) and address proof ( Aadhar card, driving licence). Document requirements may vary from bank to bank
  • If the bank allows, you can apply for a credit card against FD online through your bank’s net banking or mobile banking app. You may not need to submit any documents since you are an existing customer of the bank

Final Thoughts

Credit cards are likely to remain a preferred mode of payment both online and offline. Moreover, the rewards and cashback offers make them an attractive option. Applying for a secured credit card against a fixed deposit is one of the easiest ways to obtain one. However, it’s imperative to remember that you are pledging a fixed deposit as collateral. Therefore, banks may recover the outstanding balance from your FD account if you fail to pay your credit card bills, which can further damage your credit score.

FD credit cards are an excellent alternative for those who may find it difficult to obtain regular credit cards. An FD credit card serves as a tool to improve your credit score, which is essential to secure loans easily.


What is the limit of an FD credit card?

The credit limit of an FD credit card depends on the fixed deposit amount. A higher FD amount will result in a higher credit card limit. Banks usually offer up to 75% to 85% of the FD amount as the limit.

What is the minimum FD amount required for a credit card?

The minimum FD required for a credit card differs from bank to bank. Typically it ranges from Rs 10,000 to Rs 20,000.

What is the difference between a secured and unsecured credit card?

The term unsecured credit card refers to a regular credit card that banks offer based on the applicant’s gross income, credit history, occupation, and other factors. They are called unsecured credit cards because banks issue them without any collateral. A secured credit card is one that banks provide to people who pledge collateral. This type of credit card is easy to acquire because a fixed deposit serves as collateral.

Can I make withdrawals at ATMs using an FD credit card?

You can withdraw up to 100% of your credit limit from an ATM using an FD credit card. However, this feature may vary across banks.

What are the benefits of an FD Credit Card?

An FD Credit Card allows you to earn interest on your FD while also providing you with credit to meet your needs. A credit card can also assist in improving your credit score.

What happens to my credit card if I close my FD?

The credit card is linked to your FD, if you withdraw your FD, you may first have to cancel your credit card with the bank. Many banks offer FD credit cards linked to auto-renewing fixed deposits since these cards cannot exist without linked fixed deposits.


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