Federal Bank Credit Card Against FD

What is a Federal Bank Credit Card Against FD?

The Federal Bank credit card against FD has two variants the Standard Credit Card (RuPay/Visa Signet) and the SimpliFi Fi-Federal Credit Card, a co-branded card in partnership with the Fi app. The Credit Card Against FD is suitable for young professionals who have not yet built a credit history. The fixed deposit remains under a lien but continues to earn interest at the applicable Federal Bank FD rates, depending on the deposit amount and tenure.

Federal Bank Credit Card Against FD Features

The Federal Bank credit card against FD includes several useful features for those who have a fixed deposit with the bank. Some of them include:

• Flexible Credit Limit: It goes up to 80% of the deposit amount (with a cap of ₹10 lakh) for the Standard Credit Card and up to 90% for the SimpliFi Fi–Federal Credit Card. 

• Minimum Documentation: A Federal Bank credit card against FD requires only basic documents since the fixed deposit acts as security. No credit score or income proof is needed.

• No Joining or Annual Fees: Both Federal Bank credit cards against FD come with zero joining and annual charges, making them lifetime free. This applies to both the Standard Credit Card and the SimpliFi Fi–Federal Credit Card.

• Rewards and Points: With a Federal Bank credit card against FD, you can earn points or coins on every purchase. The SimpliFi Fi–Federal Credit Card offers up to 20% off on weekends at partner brands and higher coin rewards on weekend transactions.

Pros and Cons of Federal Bank Credit Card Against FD

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

Application Process for Federal Bank Credit Card Against FD

The application process differs for each Federal Bank credit card against FD, as explained below:

1. Standard Credit Card (RuPay/Visa Signet)

   • Step 1: Open a Fixed Deposit: Visit a Federal Bank branch or use FedNet/FedMobile to open a fixed deposit of ₹25,000 or more with a minimum tenure of 6 months.

   • Step 2: Request for Credit Card: Inform the bank that you want to apply for a credit card against your fixed deposit.

   • Step 3: Submit Documents: Provide basic KYC documents such as ID proof, address proof, and a passport-size photograph.

   • Step 4: Lien on FD: The bank will place a lien (lock) on your FD and process your credit card application.

   • Step 5: Card Issuance: Once approved, the credit card will be issued and sent to your registered address.

2. SimpliFi Fi–Federal Credit Card (via Fi App)

   • Step 1: Download Fi App: Install the Fi app from the Play Store or App Store and complete digital KYC to open a Federal Bank savings account.

   • Step 2: Open a Fixed Deposit: Create a fixed deposit of ₹15,000 or more within the app to become eligible for the credit card.

   • Step 3: Apply in the App: Go to the ‘Card’ section in the app and apply for the SimpliFi Fi–Federal Credit Card.

   • Step 4: Get Virtual Card: The virtual card will be issued instantly after approval and can be used for online payments.

   • Step 5: Receive Physical Card: A physical card will be delivered to your address within 5–7 business days.

Note: Tax-saving FD has a 5-year lock-in and cannot be used to get a Federal Bank credit card against the FD. Customers get tax benefits under Section 80C of the Income Tax Act.

Closure Process for Federal Bank Credit Card Against FD

Closing a Federal Bank credit card against FD involves a few simple steps. Here's how the process works:

1. Clear Outstanding Dues

   • Ensure that all outstanding amounts on your credit card are fully paid.

   • No dues should remain on the card at the time of closure request.

2. Raise a Closure Request

   • Visit the nearest Federal Bank branch or call customer care to request card closure.

   • You may also submit a written request or raise a service request through FedNet or FedMobile.

3. FD Lien Removal

   • Once the card is closed and dues are cleared, the bank will remove the lien on your fixed deposit.

   • The FD will become fully accessible for withdrawal or premature closure.

4. Confirmation and Statement

   • You will receive a closure confirmation message or email from the bank.

   • Request a No Dues Certificate or final statement for your records, if needed.

Who Should Consider Federal Bank Credit Cards Against FD?

The Federal Bank credit card against FD is a suitable option for individuals who fall into any of the following categories:

• Young Professionals Starting Their Careers: If you’ve recently started working and do not yet have a credit history or regular income documentation, this card provides an easy way to access credit using a fixed deposit. 

• First-Time Credit Card Applicants: The Federal Bank credit card against FD comes with simple eligibility criteria and minimal documentation, making it accessible to those new to formal credit.

• Individuals Looking to Build or Improve Credit Score: If you want to establish or rebuild your credit profile, this card allows you to do so securely. 

• Existing Federal Bank Customers with Idle FDs: If you already have a fixed deposit with Federal Bank, you can easily apply for a credit card without any extra documentation. 

Key Takeaways

The Federal Bank Credit Card Against FD is issued against a fixed deposit and is ideal for individuals without proof of income or credit history. It offers all standard credit card features, such as online shopping, bill payments, and reward benefits. The fixed deposit remains active and earns interest at the applicable FD interest rate. The credit limit typically ranges from 80% to 90% of the fixed deposit amount, depending on the card variant, making it a convenient way to access credit and gradually build your credit profile.