City Union Bank Credit Card Against FD

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.

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Maximum returns Offered by Guaranteed

6.5%**

Fixed Deposits

(by SBI bank)

(5-10 Years)

7.1%***

Public Provident Fund

(other popular options)

(15 Years)

Get Guaranteed returns up to 7.1%*
Fully Tax-Free* (unlike FD), Life Cover Included
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What is a City Union Bank Credit Card Against FD?

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. 

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.1% (TAX-FREE)
Returns After Tax
7.1%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

City Union Bank Credit Card Against FD Features

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

  • Interest Charges: You only pay interest on unpaid dues. The rate can go up to 35.4% per year (2.95% per month).
  • Interest-Free Period: This card offers a minimum interest-free period of 20 days, with interest charged only on unpaid balances after that.
  • Add-on Cards Available: With a City Union Bank credit card against FD, you can request supplementary cards for your family members under the same primary account, making it easier to manage shared expenses.
  • No Joining or Annual Fee: The City Union Bank credit card against FD has zero joining fees and no annual membership charges, making it a completely free-to-hold secured credit card.
fd return beater

Pros and Cons of 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.

FD interest rates India have fallen consistently over the last 12 years.
Invest in Plans that offer Guaranteed Returns for over 25 Years

Application Process for City Union Bank Credit Card Against FD

To apply for a City Union Bank credit card against FD, follow these steps:

  • Open a Fixed Deposit: Create a fixed deposit and request lien marking at any City Union Bank branch.
  • Fill Out the Application Form: Get the secured card form from the bank and fill it out accurately.
  • Submit Required Documents: Provide valid identity proof (like PAN or Aadhaar) and address proof. A confirmation of the FD lien will also be needed.
  • Verification and Card Issuance: The bank verifies documents and the lien, then issues the card.
Guaranteed return plan Guaranteed return plan

Closure Process for City Union Bank Credit Card Against FD

To close your City Union Bank credit card against FD, follow these steps:

  1. Pay Outstanding Dues:

    Settle all dues on the credit card before initiating closure.

  2. Submit Closure Request:

    Request closure by visiting the nearest CUB branch or contacting their customer care team.

  3. FD Hold Removal:

    After verification, the bank will remove the lien on your fixed deposit within 7–10 working days.

  4. Early Closure Rules:

    If the FD is prematurely closed, the outstanding credit card dues will be recovered from the deposit amount.

  5. Penalty Clause:

    The bank may charge penalties and adjust the FD interest if dues remain unpaid at closure.

Get 100% Guaranteed Returns Get 100% Guaranteed Returns
*Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Who Should Consider City Union Bank Credit Cards Against FD?

City Union Bank credit card against FD is particularly well-suited for:

  • Individuals Without Income Proof: Ideal for those without formal income documents or fixed monthly salaries.
  • First-Time Credit Card Users: Suitable for students, homemakers, and self-employed individuals who want a low-risk way to enter the credit system.
  • People Looking to Build Credit: A secured credit card is a great tool for improving or building your credit score without exposure to unsecured debt.

Key Takeaways

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.

FAQs

  • Who is eligible for the City Union Bank credit card against FD?

    The City Union Bank credit card against FD is available to Indian residents aged 18 years or older who maintain a lien-marked fixed deposit with the bank. 
  • What is the credit limit for the City Union Bank credit card against FD?

    The City Union Bank credit card against FD offers a credit limit of up to 90% of the value of the fixed deposit held with the bank.
  • Does City Union Bank require income proof for a credit card against FD?

    No, City Union Bank does not require proof of income when issuing a credit card against a fixed deposit.
  • What happens to the fixed deposit if I default on the City Union Bank credit card against FD?

    If you fail to pay dues on your City Union Bank credit card against FD, the bank may recover the outstanding amount by liquidating the fixed deposit after 90 days of default. In cases of premature FD closure, all card dues must be settled first.

*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

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