Central Bank of India Credit Card Against FD

What is a Central Bank Credit Card Against FD?

The Central Bank of India Aspire Credit Card is given when you open a fixed deposit under the Cent Aspire Deposit Scheme. The fixed deposit stays with the bank and continues to earn high FD interest rates, while the credit card can be used for everyday expenses. The card is issued along with the deposit and does not have any extra joining fee. The Central Bank of India provides such credit cards against a fixed deposit with an easy approval process.

Pros and Cons of Central Bank Credit Card Against FD

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

Central Bank Credit Against FD Features

Here are some key features of the Central Bank credit card against FD:

• Credit Limit Against FD: The Aspire Credit Card offers a credit limit of up to 80% of the fixed deposit amount, with a maximum limit of ₹4,00,000, as per bank guidelines.
• Interest-Free Credit Period: The Central Bank credit card against FD offers up to 55 days of interest-free credit on purchases, depending on your billing cycle and timely repayment of dues.
• Deposit Tenure: The deposit period starts from 1 year and can go up to 10 years, with flexible options like 15 or 18 months. An auto-renewal option is also available.
• No Income Proof or Credit History Needed: The Central Bank credit card against FD does not require income proof or a CIBIL report, as the credit limit is based on the fixed deposit held with the bank.

Application Process of Central Bank Credit Card Against FD

To apply for the Aspire Credit Card from Central Bank, follow these steps:

1. Open Cent Aspire Deposit Scheme: 

   Start a fixed deposit under the Cent Aspire Deposit Scheme with a minimum amount of ₹20,000.

2. No Separate Credit Card Application: 

   A separate application for the Aspire Credit Card is not required. The application can be done through the FD opening form itself.

3. KYC Done with FD: 

   Since the FD account requires KYC, no additional KYC is needed for the credit card.

4. Card Issued to First Named Depositor: 

   The free Aspire Credit Card is issued only to the first name on the FD account (primary account holder).

5. Lien Marking on FD: 

   The fixed deposit is lien-marked to secure the credit limit for the card. The deposit remains in your name and continues to earn interest.

6. Card Dispatch: 

   The credit card is processed and dispatched within a few working days after the FD setup.

Closure Process of Central Bank of India Credit Card Against FD

Here’s how you can close your Aspire credit card linked to a fixed deposit with Central Bank:

1. Card Validity: 

   The Aspire Credit Card is valid for 3 years from the date of issue. You can also choose to close it earlier if needed.

2. Submit Card for Closure: 

   To close the card, visit your home branch and submit a written request along with the physical card.

3. Settle Outstanding Dues:

   Ensure all pending payments on the card are cleared. If dues remain unpaid, the bank will adjust the amount from your fixed deposit.

4. FD Closure or Lien Removal: 

   After the card is closed and dues are cleared, the bank will either remove the lien (if you want to keep the FD) or close the FD and release the funds with applicable interest.

5. Final Confirmation: 

   The branch will provide confirmation once the credit card account is closed and the lien is lifted or FD is released.

Who Should Consider a Central Bank Credit Card Against an FD?

The following are the categories of people who may find this credit card option useful and convenient:

• New-to-credit individuals: A good option for those who are just starting their credit journey and have no credit history.
• Students and homemakers: Suitable for those who do not have regular income or salary slips.
• Self-employed and freelancers: No need to submit income documents, making it a convenient choice.
• Individuals with low or no credit score: Helpful for improving or rebuilding credit over time.
• Existing FD holders with the Central Bank of India: Allows access to a credit card without breaking the fixed deposit.

Key Takeaways 

 The Central Bank of India Aspire Credit Card is an excellent credit option for those without income proof or a credit history, such as students and homemakers. It is issued against a fixed deposit under the Cent Aspire Deposit Scheme, allowing you to leverage competitive Central Bank FD interest rates while building or enhancing your credit profile. The card provides a credit limit of up to 80% of your FD amount (with a maximum of ₹4 lakh), features global acceptance, and includes accident insurance coverage. With no annual fees and a 3-year validity, it also offers an interest-free period of up to 55 days.