Citibank Credit Card Against FD

What is a Citibank Credit Card Against FD?

A Citibank Credit Card Against FD is a secured credit card issued by placing a fixed deposit with Citibank. Applicants aged 18 years and above can apply as primary cardholders, while add-on cardholders must be above 18 years. The card can be used for everyday transactions under standard terms, and the fixed deposit continues to earn interest at prevailing Citibank FD rates range from 3% to 7.25% per annum. No income proof or credit history is required, making it a convenient option to access credit while maintaining savings.

Citibank Credit Card Against FD Features

Citibank offers eligible customers credit cards against fixed deposits (FDs), providing a credit limit based on the FD amount. The key features of this facility include:

• Credit Limit: Up to 90% of the FD value, subject to the bank's assessment.
• Processing Fees: Applicable fees as per Citibank's terms and conditions.
• Interest on FD: Continues to accrue as per the prevailing FD interest rates.
• Eligibility: Available to existing Citibank customers meeting the bank's criteria.
• No Income Proof Required: Income documentation may not be necessary, depending on the applicant's profile.
• Helps Build Credit History: Timely payments can improve a credit score.

Pros and Cons of Citibank Credit Card Against FD

The table below highlights the key pros and cons of a Citibank credit card on FD for easy comparison:

Application Process of Citibank Credit Card Against FD

Applying for a Citibank Credit Card against a Fixed Deposit (FD) can be done online and offline. Below are the detailed steps for each method:

Online Application Process

You can apply for a Citibank credit card on FD directly through the bank’s digital platforms:

• Visit the Official Website: Access the Citibank India website and navigate to the credit cards section.
• Select FD-Linked Credit Card: Choose the option for a credit card against FD and click on “Apply Now.”
• Open or Link a Fixed Deposit: Open a new FD of at least ₹5,000 or link an existing FD that meets the bank’s minimum requirement.
• Complete the Application Form: Enter personal details, FD information, and other necessary fields in the online form.
• Upload Required Documents: Provide scanned copies of PAN card, valid address proof (Aadhaar, Passport, Voter ID, or Driving Licence), and a passport-size photograph.
• Verification and Approval: Citibank verifies the details and FD. After successful verification, the credit card is approved and dispatched to the registered address.

Offline Application Process

Applicants who prefer in-person assistance can visit a Citibank branch and apply for the credit card against FD by completing the required paperwork:

• Visit the Nearest Branch: Request the application form for a credit card against FD.
• Place a Fixed Deposit: Open a new FD of at least ₹5,000 if not already held, ensuring the tenure meets the bank’s requirement.
• Fill the Application Form: Enter details of the FD to be linked to the credit card.
• Submit Documents: Attach a passport-size photograph, PAN card, address proof, and an FD receipt with a lien in favour of the bank.
• Bank Verification: Branch staff verify all documents and FD details before processing the request.
• Card Issuance: Upon successful verification, the FD-backed credit card is dispatched within a few working days.

Closure Process for Citibank Credit Card Against FD

To close your Citibank credit card linked to a fixed deposit, proceed with the following steps:

• Settle All Outstanding Dues: Ensure that all dues on the credit card are cleared before initiating the closure process.
• Initiate Closure Request: Submit a closure request by visiting the nearest Citibank branch, contacting customer care, or utilising available digital banking channels.
• Lien Removal on Fixed Deposit: Upon processing the closure request and clearance of dues, the lien placed on your fixed deposit will be removed, typically within a few working days.
• Adjustment Against Fixed Deposit: In case of any outstanding amounts on the credit card, Citibank reserves the right to recover them by adjusting against the fixed deposit.
• Impact on Fixed Deposit Interest: If recovery is made from the fixed deposit, applicable charges or a reduction in interest may be applied per Citibank’s policy.

Who Should Consider a Citibank Credit Card Against FD?

A Citibank credit card against FD is designed for customers seeking access to credit without stringent eligibility criteria. The following groups may find this option suitable:

• Students and Homemakers: Depositors without regular income proof can apply using a fixed deposit, making this card accessible for students, homemakers, or others without formal earnings.
• First-Time Credit Card Users: Investors new to credit can use this card to build a credit history and gradually improve their credit score.
• Applicants Seeking Minimal Paperwork: Since the card is secured against an FD, documentation requirements are minimal, making the process faster and simpler.

Key Takeaways

Citibank offers a credit card against a fixed deposit (FD) facility, allowing customers to obtain a credit card by placing an FD with the bank. The credit limit is typically up to 90% of the FD value, providing access to funds while the FD earns interest at prevailing rates. This arrangement benefits depositors seeking credit without income proof or a credit history, as the FD serves as collateral. The card can be used for various transactions, offering a convenient financial tool for eligible customers.