Indian Bank Credit Card Against FD

What is an Indian Bank Credit Card Against FD?

The Indian Bank credit card against FD is a secured credit facility offered against a fixed deposit held with the bank. It is particularly suitable for young professionals starting their careers with no credit history and looking to build or improve their credit score. Indian Bank offers this facility through three card variants: the IB RuPay Classic Card, IB RuPay Platinum Card, and IB RuPay Select Card. 

These cards function like any regular credit card and can be used for shopping, bill payments, and online transactions. The fixed deposit used as collateral remains locked but continues to earn interest at the applicable Indian Bank FD interest rate.

Indian Bank Credit Card Against FD Features 

The following are some key features of the Indian Bank credit card against FD:

• Zero Joining Fee: All variants of the Indian Bank credit card against FD Classic, Platinum, and Select come with no joining fee.
• Low Annual Fee: The Indian Bank credit card against FD comes with no annual fee for the first year, and a nominal charge of ₹250 from the second year onwards across all three variants, Classic, Platinum, and Select.
• Credit Limit: The Indian Bank credit card against FD offers limits based on the FD amount. RuPay Classic is for ₹10,000 to ₹25,000, RuPay Platinum for ₹25,001 to ₹1.99 lakhs, and RuPay Select for ₹2 lakhs and above.
• No Income Proof or Credit Score Required: The Indian Bank credit card against FD does not require any income proof, as the fixed deposit is collateral. 

Pros And Cons Of Indian Bank Credit Card Against FD

The Indian Bank credit card against FD is a financial instrument that, like any other, comes with distinct pros and cons. They are as follows:

Application Process for Indian Bank Credit Card Against FD

Here is the application process for the Indian Bank credit card against FD.

1. Open an Online or Offline: 

   Start by opening a fixed deposit with Indian Bank. You can do this by visiting a branch or using the bank’s net banking or the IndOasis mobile app.

2. Choose Your FD: 

   Select the fixed deposit you want to use as collateral. Your eligibility for a particular card variant depends on the deposit amount linked.

3. Fill in the Application Form: 

   Enter the necessary details, such as your preferred credit limit and review the terms and conditions. Once you agree, apply digitally.

4. Card Processing and Issuance: 

   After submission, the bank will process your application. The credit card will be issued and sent to your registered address.

5. Activate and Use: 

   Once you receive the card, follow the instructions to activate it. After activation, you can use it for shopping, bill payments, and other regular transactions.

Closure Process for Indian Bank Credit Card Against FD

If you wish to close your Indian Bank credit card against FD, follow these steps:

1. Clear Outstanding Balance: 

   Begin by paying off any outstanding dues on your credit card or associated overdraft against the fixed deposit. This ensures there are no pending charges before initiating closure.

2. Visit Your Nearest Branch: 

   After clearing dues, visit the Indian Bank branch where your account is held. Inform the bank about your intention to close the secured credit card facility linked to your FD.

3. Submit Closure Request: 

   Fill out and submit the closure form provided by the branch. This officially initiates deactivating your credit card and releasing the FD lien.

4. Return the Physical Card: 

   Hand over the physical card to the bank representative. They may cut the card in your presence to confirm it is deactivated.

5. FD Lien Release: 

   Once your card is deactivated and all dues are cleared, the bank will remove the lien on your fixed deposit. Your FD will be restored to full, unrestricted status.

6. Get Confirmation: 

   Request a written confirmation from the bank (“No Objection Certificate” or NOC) stating that the credit card facility has been successfully closed and the lien has been released.

Who Should Consider an Indian Bank Credit Card Against FD?

The Indian Bank credit card against FD is ideal for individuals who may not be eligible for a regular credit card. You can consider this option if you fall into any of the following categories:

• First-Time Credit Users: If you are new to credit and don’t yet have a credit score, this card offers a safe way to start building your credit history using your fixed deposit as collateral.
• Young Professionals: Those just starting their careers without formal income documents can benefit from this card, as it does not require proof of income or a strong credit background.
• Individuals with Low or No Credit Score: If your credit score is low or nonexistent, the Indian Bank credit card against FD allows you to rebuild or establish your credit without the risk of a standard unsecured card.
• Conservative Savers: If you prefer not to take unsecured loans or risk-based credit, this card lets you access credit while keeping your savings intact and earning interest.

Key Takeaways

A fixed deposit secures the Indian Bank Credit Card Against FD and is ideal for individuals without income proof or a credit history. It provides standard credit card benefits, including bill payments, online purchases, and EMI facilities. Meanwhile, the fixed deposit remains intact and accrues interest at the prevailing FD Interest rates. With a credit limit of up to 90% of the fixed deposit value, this card offers a safe and convenient way for users to build their credit profile over time.