Kotak Mahindra Bank Credit Card Against FD

What is a Kotak Mahindra Bank Credit Card Against FD?

Kotak Mahindra Bank credit card against FD is a secured credit card issued against a fixed deposit maintained with Kotak Mahindra Bank. Currently, the bank offers this facility through the Kotak 811 Dream Different Credit Card. It is designed to help individuals access credit without needing proof of income or an existing credit history. The card is linked to your fixed deposit, which continues to earn interest at the applicable Kotak Mahindra Bank FD interest rate even while being used as collateral for the card. This makes it a suitable option for those looking to build credit in a low-risk way while earning guaranteed interest.

Kotak Mahindra Bank Credit Card Against FD Features

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

• Interest-Free Cash Withdrawal: The Kotak Mahindra Bank credit card against FD offers an interest-free period of up to 48 days on cash withdrawals.
• Rewards on Transactions: The Kotak Mahindra Bank credit card against FD allows you to earn 4 reward points for every ₹100 spent on online purchases and 1 point for every ₹100 spent on other eligible transactions. This enables you to benefit from your everyday spending.
• Add-on Card Facility: You can apply for an Add-on Card with the Kotak Mahindra Bank credit card against FD for a family member above 18. The Add-on Card offers the same benefits as the primary card, with the option to set individual spending limits and track transactions separately.
• Fuel Surcharge Waiver: With your Kotak Mahindra Bank credit card against FD, you get a 1% fuel surcharge waiver on transactions between ₹500 and ₹4,000 at any petrol pump, with annual savings of up to ₹3,500.
• Railway Surcharge Waiver: Kotak Mahindra Bank credit card against FD also offers a railway surcharge waiver of 1.8% on IRCTC bookings and 2.5% on ticket counter transactions, with savings of up to ₹500 per year.

Pros and Cons of Kotak Credit Card Against FD

Here’s a quick overview of the pros and cons of the Kotak Mahindra Bank credit card against FD:

Application Process of Kotak Credit Card Against FD

To apply for a Kotak Mahindra Bank credit card against FD, follow these steps:

1. Log in to Mobile Banking: 

   Begin by logging into the Kotak Mahindra Bank mobile banking application. Navigate to the credit card section and select the option for a credit card against a fixed deposit.

2. Link or Open a Fixed Deposit: 

   You can select an existing eligible fixed deposit or open a new one. The minimum deposit required is ₹10,000. The deposit must be held for a minimum tenure of 181 days.

3. Set Credit Limit and Add-on Card Preferences: 

   Choose your preferred credit limit, up to 90% of your fixed deposit amount. You may also apply for an add-on card for a family member who is 18 years or older.

4. Provide Delivery Details: 

   Enter or confirm your address for communication and card delivery purposes.

5. Review and Submit Application: 

   Review all the entered information carefully. Once confirmed, apply. After successful submission, you will receive a reference number for tracking. The card is usually delivered within 7 to 10 working days.

Closure Process for Kotak Credit Card Against FD

If you want to close your Kotak Mahindra Bank credit card linked to a fixed deposit, follow these steps:

1. Clear All Outstanding Payments: 

   Ensure you have paid off all pending amounts on your credit card, including dues, fees, or interest charges.

2. Submit a Closure Request: 

   Contact Kotak Mahindra Bank through net banking, mobile banking, customer care, or visit your nearest branch. Request the closure of your FD-backed credit card.

3. Verification by the Bank: 

   The bank will verify that your credit card account has no outstanding balance and that all charges have been settled.

4. Release of Fixed Deposit: 

   Once the bank confirms closure, your pledged fixed deposit will be unlinked and available in your account for withdrawal or further investment.

5. Receive Confirmation: 

   Kotak Bank will send you a confirmation via email, SMS, or app notification, verifying the successful closure of your credit card and the release of your FD.

Who Should Consider Kotak Mahindra Bank Credit Card Against FD?

Kotak Mahindra Bank credit card against FD is ideal for the following individuals:

• First-time credit users: If you have little to no credit history, this card helps you responsibly establish and build your credit score.
• Young professionals and students: For those just starting their careers or education, this card offers access to credit without needing proof of income.
• Individuals without regular income documents: Self-employed, homemakers, or those without formal pay slips can still avail of a credit card using an FD as collateral.
• Cautious savers: Those who prefer using their fixed deposit as security rather than liquidating savings will find this card beneficial.

Key Takeaways

The Kotak Mahindra Bank credit card against FD is a secured credit card designed for individuals who may not have an existing credit history or proof of income. It offers easy approval, a credit limit of up to 90% of the fixed deposit amount, and the FD continues to earn interest at the applicable FD interest rate. With no joining or annual fee, interest-free cash withdrawals for up to 48 days, and added benefits like reward points, surcharge waivers, and add-on card options, it is a practical choice for first-time credit users, young professionals, and anyone seeking a low-risk, collateral-backed credit option.