
City Union Bank credit card against FD comes with up to 90% of your fixed deposit amount as the credit limit. Anyone aged 18 or above can apply. It works like a regular credit card and can be used for shopping, paying bills, online purchases, and more.
7.1%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
7.1%***
Public Provident Fund
(other popular options)
(15 Years)
A City Union Bank credit card against FD is a secured credit card linked to a fixed deposit held with the bank. Instead of needing proof of income or a strong credit score, you can simply open a fixed deposit and get a credit card backed by that deposit. This makes it especially useful for young professionals or first-time credit users looking to build their credit history. The card offers the same convenience as any standard credit card, but your fixed deposit remains untouched and continues to grow with the applicable City Union Bank FD interest rate.Â
Here are some of the key features of the City Union Bank credit card against FD:
The following table outlines the benefits and drawbacks of the City Union Bank credit card against FD, helping you assess whether it aligns with your financial needs:
Pros | Cons |
Helps build credit history for new or low-score users | Only individual FDs are accepted; joint FDs are not eligible |
FD continues to earn interest while linked to the card | The FD is lien-marked and not available for premature withdrawal without closure of the card |
No income documents or credit history required | Limited card types and personalisation options |
Ideal for students, freelancers, and first-time credit users | Premature closure of the FD leads to automatic card cancellation |
If you want to reduce TDS on your FD interest earnings, you can submit Form 15G or 15H to City Union Bank to minimise tax liability.
To apply for a City Union Bank credit card against FD, follow these steps:
To close your City Union Bank credit card against FD, follow these steps:
Settle all dues on the credit card before initiating closure.
Request closure by visiting the nearest CUB branch or contacting their customer care team.
After verification, the bank will remove the lien on your fixed deposit within 7–10 working days.
If the FD is prematurely closed, the outstanding credit card dues will be recovered from the deposit amount.
The bank may charge penalties and adjust the FD interest if dues remain unpaid at closure.
City Union Bank credit card against FD is particularly well-suited for:
The City Union Bank credit card against FD is a type of secured credit card with a lien marked on your fixed deposit, which serves as collateral. To apply, you must be at least 18 years old and hold a fixed deposit with the bank. The credit limit is set at 90% of your FD amount, and there's no requirement for proof of income or a previous credit history. Also, your fixed deposit continues to earn interest at the applicable FD interest rate, even while being held as security, ensuring your savings continue to grow during the card’s usage.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in