Axis Bank Credit Card Against FD

What is an Axis Bank Credit Card Against FD?

Axis Bank FD credit card is issued against a fixed deposit held with the bank and is ideal for young professionals who are just starting their careers and have not yet built a credit score. Axis Bank currently offers three such credit cards: My Zone Easy Credit Card, IndianOil Axis Bank Easy Credit Card, and Privilege Easy Credit Card. These cards function like regular credit cards and can be used for purchases, bill payments, and online transactions. The fixed deposit remains locked but continues to earn interest at the applicable Axis Bank FD interest rates, which can go up to 7.75% per annum, depending on the amount and tenure.

Axis Bank Credit Against FD Features

Axis Bank credit card against FD with easy approval, no need for income documents, and an interest-free period. The following are some key features of the Axis FD credit card -

• Credit Limit: For an Axis Bank Credit Card Against FD, the credit limit is directly linked to the fixed deposit amount. In most cases, Axis Bank offers a credit limit of up to 80% of the total value of the fixed deposit. 
• Fixed Deposit Requirement: The minimum fixed deposit amount required for an Axis Bank Credit Card Against FD depends on the specific card variant. For example, the My Zone Easy Credit Card requires a minimum FD of ₹15,000 and allows up to ₹25,00,000, while the Privilege Easy Credit Card requires a minimum FD of ₹65,000, with the same upper limit of ₹25,00,000.
• Interest-Free Period: Axis Bank offers up to 50 days of interest-free period on purchases made using the Axis Bank Credit Card Against FD, as long as the total bill is paid by the due date.
• Boost Your CIBIL Score: This credit card is an excellent tool for building or improving your credit history. As you make timely payments, your positive payment behavior is reported to credit bureaus, helping to build a strong CIBIL Score.
• Minimal Documentation: As you already have a fixed deposit with Axis Bank, getting a Credit Card Against FD is simple. No income proof is required, and only basic documents like ID and address proof are needed. 
• Rewards Points: With an Axis Bank FD credit card, users can get benefits such as reward points and cashback, similar to those offered by regular credit cards. The exact rewards depend on the specific card variant selected.

Application Process of Axis Credit Card Against FD

To apply for an Axis Bank FD credit card, follow these steps:

• Netbanking or Mobile Banking Application: Log in using your credentials
• Look for credit cards against FD: Search for it and apply
• Benefits: You can also explore the benefits of Tax Saving FDs under Section 80C
• Aadhaar PAN Details: Enter your details carefully to verify your identity
• Choose FD: Select the fixed deposit amount you wish to use.
• Select your Credit Type: Choose your preferred credit card type.
• Fill Your Basic Details: Fill email ID and contact number
• Make payment: Make the payment for the chosen FD amount.
• Complete KYC: Complete the KYC Video Process
• Activate Your Credit Card: Once confirmed, set your PIN using your credit card

Closure Process of Axis Credit Card Against FD

Here’s how you can close your credit card that is linked to a fixed deposit with Axis Bank:

• Clear Outstanding Amounts: Make sure all dues on the Axis Bank FD credit card are paid in full before initiating the closure process.
• Raise a Closure Request: Once your dues are cleared, you can request to close the card using Internet Banking, the Axis Mobile App, customer care, or by visiting your nearest Axis Bank branch.
• FD Unblocking: After the closure request is processed, the bank will remove the lien from your fixed deposit. This usually takes a few working days.
• Early Withdrawal or Pending Dues: Axis Bank FD premature withdrawal usually attracts a 1% penalty on interest. For unpaid card bills, Axis Bank may recover the outstanding amount directly from the deposit.
• Interest or Penalty Adjustment: In such cases, a lower interest rate may apply to the FD, or the bank may deduct applicable penalties as per the FD terms.

Pros and Cons of Axis Credit Card Against FD

The table below highlights some key pros and cons of Axis Bank credit cards against FD to help you make an informed decision:

Who Should Consider Axis Bank Credit Cards Against FD?

An Axis Bank FD credit card is a practical choice for individuals in the early stages of their financial journey. Consider applying if you fall into any of these groups:

• Young Professionals Starting Their Careers: This card is suitable for individuals who have just begun working and may not have an established credit history or regular income proof. It offers a simple way to access credit using a fixed deposit.
• First-Time Credit Card Applicants: Ideal for those applying for a credit card for the first time, such as students, freelancers, or homemakers, who need a basic credit line with minimal documentation.
• Those Looking to Build Credit Their Score: If you’re aiming to build or strengthen your credit profile, the Axis Bank FD credit card can help you do that over time, while your deposit remains safe and continues to earn interest.

Key Takeaways 

The Axis Bank FD credit card is issued against a fixed deposit and is suitable for individuals without income proof or a credit history. It offers regular credit card features such as bill payments, online transactions, and EMI options. The Axis Bank FD interest rates stay active and continue to earn applicable interest. The card offers a credit limit of up to 80% of the FD amount and can help users gradually build their credit profile.