Credit Card Against FD

A credit card against FD, known as FD Credit card, is a secured credit card issued as collateral or security against your FD. If you don't have a credit history or a poor CIBIL score, you can apply for this credit card against your fixed deposit. With easy approval and flexible credit limits, it ensures your FD remain in the bank and continues to earn interest.

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Includes Life Cover

Completely Tax Free+

3 Benefits, 1 Plan

Maximum returns offered by:

6.9%^* (Tax-Free)

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4.6%^* (After Tax)

Fixed Deposit

(Offered by Banks)

4.0%^*

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(Post Office)

Get Guaranteed returns upto 6.9%*

Fully Tax-Free, Life Cover Included

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How Does a Credit Card Against FD Work?

A credit card on FD is offered by banks using your existing fixed deposit as security, rather than your credit history. Based on your deposit amount, the bank usually offers a credit limit of 80% to 90% (up to 100% on the IDFC FIRST WOW credit card) of the FD value.

An FD credit card offers a faster approval process and lower fees by linking to your fixed deposit. However, if a cardholder misses their monthly payments, the bank may redeem the linked FD to recover the outstanding balance. This setup makes it easier to access credit while using your deposit as a safety net for the bank.

Your FD continues to earn interest even when it is pledged as security, based on the applicable FD interest rates offered by the bank. An FD-based credit card is especially useful for individuals who don't have any income proof to apply for a credit card or a CIBIL Score. Since the process is simpler and requires minimal documentation, you don’t have to worry about your credit history or the absence of one.

Top Credit Card Against FD in India

The table below consists of the top credit cards against the FD:

Bank / Card	Minimum FD / Credit Limit Info	Annual Fee / Joining Fee	Key Benefits & Notes
IDFC FIRST Bank Credit Card Against FD – FIRST WOW! Credit Card	Minimum FD- ₹20,000 for residents (₹25,000 for NRIs) with a credit limit of at least 100% of the FD.	No joining fee or annual fee — lifetime free.	• No income proof / no credit history required. • Earn up to 4X Reward Points on every spend. • FD keeps earning interest while the card is active.
Kotak Mahindra Bank Credit Card Against FD - Kotak811 Dream Different Credit Card	Credit limit up to 90% of your FD amount.	Lifetime free (no annual fee) as stated.	• No CIBIL score or income proof required. • Your FD continues to earn interest. • Suitable for beginners or those with limited income or credit history.
Axis Bank Credit Card Against FD	Credit limit up to 80-90% of the FD value.	Fee details are not clearly stated on that page.	• No income proof required. • Instant approval for FD-backed card. • Helps build credit history.
Indian Bank Secured Credit Cards against FD (RuPay Select / Platinum / Classic)	Minimum FD - ₹25,000 for card application; credit limit up to ~90% of FD.	No joining fee; Annual fee ₹250 from 2nd year, waived if annual spend threshold is met.	• Good low-cost option. • Helps build/improve credit score. • Your FD continues to earn interest while the card is active.
HDFC Bank Credit Card Against FD	Minimum FD - ₹15,000 with an FD tenure of ≥ 1 year to qualify.	Fee details are not clearly listed in the summary; need to check the current terms at the time of application.	• Simple eligibility even for people with low or no credit history. • FD continues to earn interest.

Note: The table consists of top credit cards against FD based on parameters like quick approval, credit limits and other consumer-friendly benefits.

Features and Benefits of a Credit Card Against FD

A credit card on FD offers a convenient way to access credit while keeping your savings secure. Here are the key benefits:

Helps Build Credit Score:

Using the card responsibly and paying bills on time helps you build or improve your CIBIL score, which strengthens your financial profile.
No Income Proof Needed:

Most banks do not require salary slips, income statements, or high credit scores to issue this card; your FD acts as the security.
Easy Approval:

Ideal for beginners, students, homemakers, or individuals with low/no credit history. Since the card is backed by your FD, approval is simpler and faster than regular credit cards.
FD Continues to Earn Interest:

Even when it is pledged, your Fixed Deposit remains active and continues generating interest, making this a smart dual-benefit option.
Credit Limit Linked to FD Value:

The credit limit is usually up to 80%–90% of your FD amount, offering easy access to funds without breaking the deposit.
Rewards and Cashback:

Many banks offer reward points, cashback, fuel benefits, and merchant offers on eligible spends, helping you save while you spend.
Interest-Free Period:

Just like a regular credit card, you get a grace period to repay dues without interest, provided you clear the full amount by the due date.
Convert Purchases into EMIs:

Higher-value purchases can often be converted into EMIs, allowing you to manage payments comfortably.

Eligibility Criteria – Who Can Apply for a Credit Card Against an FD?

Below is the eligibility criteria for the credit card against the FD:

Available only to individual resident account holders.
The applicant must hold a regular Fixed Deposit (FD) with the same bank.
The FD should not be a tax-saving FD.
The FD must meet the bank’s minimum deposit amount requirement
The FD should allow the bank to mark a lien
The FD should ideally have a minimum tenure (generally 6–12 months, depending on the bank).

Wrapping Up

Choosing a credit card against FD can be a smart way get quick and easy access to credit at the time of a need. Ideal for students, freelancers, and those with no credit history, it provides an instant credit limit, typically 80% to 90% of your FD value, without requiring income proof or a prior CIBIL score. While your deposit continues to earn interest, the on-time repayment can help in building your credit score. That makes this the most reliable way to build a high credit score and unlock premium, unsecured financial products.

FAQs

Q. What is a Credit Card Issued Against a Fixed Deposit?

A Credit Card Against Fixed Deposit is a secured credit card that you get by pledging your FD as collateral with the bank. Instead of evaluating your income or credit score, the bank uses your existing FD to determine your credit limit. This allows you to access credit while keeping your savings safe and earning interest.
Q. What is the credit card against FD HDFC?

An HDFC Credit Card against FD is a secured card where your Fixed Deposit acts as collateral, granting you a credit limit of up to 90% of your FD value. It requires no income proof or credit history, making it the fastest way to build a CIBIL score while your FD continues to earn interest. You simply need a minimum FD of ₹15,000 to get started, though the FD remains locked until the card is closed.
Q. What is the Credit card against the FD limit?

The credit limit has not been decided by the banks, but it depends on the FD deposit amount, generally 80% – 90% of the FD amount.
Q. Which banks provide a credit card against an FD?
The top banks that provide credit cards against FD are:
- HDFC Bank Credit Card Against FD
- IDFC FIRST Bank Credit Card Against FD – FIRST WOW! Credit Card
- Kotak Mahindra Bank Credit Card Against FD - Kotak811 Dream Different Credit Card
- Axis Bank Credit Card Against FD
- Indian Bank Secured Credit Cards against FD (RuPay Select / Platinum / Classic)
- SBI credit card against FD
Q. Who Can Apply for an FD Credit Card?

An FD Credit Card can be availed by individuals who hold a regular Fixed Deposit with the bank and are willing to allow the bank to place a lien on the deposit. Since the FD serves as security, no income proof, salary slips, or a high credit score is required for approval. This makes it an accessible option for students, homemakers, first-time credit users, or anyone looking to begin or rebuild their credit history.
Q. Does a credit card against an FD help in increasing your CIBIL Score?

Yes, definitely, a credit card against an FD increases your CIBIL score if you use it wisely and sincerely. By timely payment and keeping utilization low, the card helps establish a credit history.
Q. What is the minimum limit criteria for an SBI credit card against FD?

For the SBI credit card against FD, the minimum amount is Rs. 25,000 for the SBI Unnati Credit Card, which is a secured card backed by a fixed deposit.