Credit Cards against fixed deposit is a very good option for people with bad credit history or limited income. People with bad credit history or low credit score struggles a lot to get a credit card. They can opt for Credit Card against a fixed deposit. These type of credit cards are also known as a secured credit card. Secured credit cards are backed by fixed deposit. If card user defaults in paying credit dues bank will use fixed deposit amount to repay dues. The interest applicable to these type of cards is low compared to normal credit card.
If you are planning to apply for credit card against a fixed deposit. Here is a list of 7 credit cards against a fixed deposit.
Credit Cards Against Fixed Deposit
A credit card against a fixed deposit is a secured credit card, meaning it is issued against the collateral of an FD. If you default on payments, the bank can recover the amount from your deposit. This makes it a great option for individuals with low or no credit scores.
Why Choose a Credit Card Against FD?
- Easy Approval – No credit history or income proof required.
- Lower Risk – Your FD acts as the security.
- Credit Score Improvement – Timely payments boost your creditworthiness.
- Attractive Benefits – Reward points, cashback, and offers similar to regular credit cards.
7 Credit Cards against Fixed Deposit
1. SBI Advantage Plus Credit Card
Features:
- Issued against a minimum FD of ₹25,000.
- Credit limit of up to 85% of the FD value.
- Interest-free credit period of up to 50 days.
- Reward points on every transaction.
Why Choose It? Great for frequent shoppers looking for reward points and extended interest-free periods.
2. ICICI Bank Coral Credit Card Against FD
Features:
- Requires a minimum FD of ₹20,000.
- 2 reward points on every ₹100 spent.
- Discounts on dining and movie tickets.
- Complimentary airport lounge access.
Why Choose It? Perfect for those who enjoy dining out and entertainment perks.
3. HDFC Bank MoneyBack Credit Card Against FD
Features:
- Minimum FD required: ₹50,000.
- 2X reward points on online spending.
- Fuel surcharge waiver.
- Contactless payment support.
Why Choose It? Ideal for online shoppers who want to earn extra reward points on their purchases.
4. Axis Bank Insta Easy Credit Card
Features:
- Get up to 80% of FD value as credit limit.
- Minimum FD of ₹20,000 required.
- No income proof needed.
- Flexible EMI options on big purchases.
Why Choose It? Best for individuals looking for flexibility in repayments and easy approval.
5. Kotak 811 Secure Credit Card
Features:
- Get a card against an FD of just ₹10,000.
- No joining or annual fee.
- Attractive cashback offers.
- 1 reward point per ₹100 spent.
Why Choose It? Best for beginners who want a no-frills, no-fee credit card to start their credit journey.
6. Bank of Baroda Assure Credit Card
Features:
- Requires a minimum FD of ₹15,000.
- 1% fuel surcharge waiver.
- Lifetime free credit card.
- High credit limit of up to 100% of FD value.
Why Choose It? A great option if you want a lifetime free credit card with high credit limits.
7. IDFC FIRST WOW Credit Card
Features:
- Get a card against an FD of ₹10,000.
- Lifetime free card.
- Earn reward points on every spend.
- Zero forex markup fees.
Why Choose It? Best for international travelers looking for zero forex charges and global acceptance.
Benefits of Credit card against fixed deposit
- Instant approval, fewer documents are required to avail this credit card.
- No income proof is required to avail of this credit card.
- You will surely get a credit card irrespective of your credit history.
- Low-interest rate compared to normal credit card options.
- Fixed deposit interest payment will continue irrespective of credit card usage.
- It is a win-win product for the bank and the end user.
Drawbacks of Credit card against fixed deposit
- It is a card offered against your fixed deposit savings.
- You cannot close your FD unless you clear the credit card dues.
- Overuse of credit cards and not paying on time will destroy your savings.
How to Apply for a Credit Card Against FD?
Applying for a secured credit card is super easy! Just follow these steps:
- Choose a bank – Select a bank that offers the best benefits.
- Open an FD – Deposit the required minimum amount in a fixed deposit.
- Apply for the card – Submit your application online or at a branch.
- Receive your card – Once approved, you’ll get your credit card in a few days.
Things to Keep in Mind Before Applying
1. Interest Rates & Fees
Even though these cards are secured, they still have interest rates on unpaid balances. Always check the terms before applying.
2. Credit Limit
Your credit limit depends on the FD value, usually ranging from 75% to 100% of the deposit.
3. Payment Discipline
Late payments can still impact your credit score. Ensure you clear your dues on time.
4. FD Lock-in Period
Most banks lock your FD for the card’s tenure, meaning you won’t be able to withdraw it prematurely.
Getting a credit card against a fixed deposit is a fantastic way to build or improve your credit score while enjoying the perks of a regular credit card. It’s a win-win situation—you earn interest on your FD while using your card responsibly to gain financial credibility. If you’re new to credit or have faced rejection due to a low score, this could be your best route to financial empowerment!
Remember – Credit cards can be a great tool if used wisely. Make sure to pay your dues on time.
FAQs
1. Can I withdraw my FD if I have a secured credit card?
No, your FD is usually locked until you close your credit card or pay off all dues.
2. What happens if I default on my secured credit card?
The bank will deduct the outstanding amount from your FD, and it may impact your credit score.
3. Do secured credit cards offer the same benefits as regular cards?
Yes! You get cashback, reward points, and other perks, similar to unsecured credit cards.
4. Is there an age limit to apply for a credit card against FD?
Most banks require applicants to be at least 18 years old.
5. Can I upgrade to an unsecured credit card later?
Yes! Many banks offer an upgrade to an unsecured card if you maintain a good repayment history.
6. Can I get a credit card against FD with zero credit score?
Yes, that’s the beauty of it. Since your FD secures the card, banks don’t need a credit score to approve you.
7. How soon will I get the card after applying?
Usually within 7–10 working days, sometimes faster if you apply digitally with pre-approved FDs.
8. Can I earn rewards like a regular credit card?
Absolutely! Many of these cards offer cashback, points, fuel waivers, and even lounge access.
9. What if I already have a credit card?
You can still apply for a secured card — it won’t hurt. In fact, it might improve your credit utilization ratio.
10. Can I convert large spends into EMI?
Yes, most secured credit cards allow EMI conversion for purchases over a certain amount. It’s perfect for managing big expenses.
