Yes Bank Credit Card Against FD

What is a Yes Bank Credit Card Against FD?

A Yes Bank credit card against FD is a secured credit card that allows customers to get a credit card by opening a fixed deposit with Yes Bank. The bank currently offers three such cards: YES FIRST Preferred Credit Card, YES Premia Credit Card, and YES Prosperity Rewards Credit Card, each designed to function like a regular credit card. While the fixed deposit remains under lien as collateral, it continues to earn interest at the applicable Yes Bank FD interest rate, offering both credit access and higher returns on savings at the same time.

Yes Bank Credit Card Against FD Features

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

• Contactless Card Technology: Cards like the YES FIRST Preferred Credit Card and YES Premia Credit Card let you simply tap the card near the reader without entering a PIN for purchases up to ₹5,000, making everyday transactions quicker and easier.
• Fuel Surcharge Waiver: Yes Bank Credit Cards Against FD offer a fuel surcharge waiver at fuel stations across India for transactions between ₹400 to ₹5,000. 
• Foreign Currency Markup: The YES FIRST Preferred Credit Card comes with a preferential markup of just 1.75%. While the YES Premia Credit Card and YES Prosperity Rewards Credit Card offer a markup of 2.75%, making overseas spending more affordable across all card options.
• Interest-Free Credit Period: Yes Bank Credit Cards Against FD offer up to 50 days of interest-free credit on your purchases. This benefit is available on cards like the YES Prosperity Rewards Credit Card and the YES FIRST Preferred Credit Card.
• Add-on Cards for Family: Yes Bank credit cards against FD allow you to get up to 3 add-on cards for your spouse, parents, siblings, or children (above 18 years). This feature is available across all three cards, making it easy to extend the benefits to your family.

Pros and Cons of Yes Bank Credit Card Against FD

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

Application Process for Yes Bank Credit Card Against FD

The following are the steps to apply for a Yes Bank credit card against FD:

1. Open a Fixed Deposit with Yes Bank: 

   To begin, you need to open a fixed deposit with Yes Bank. This can be done online through the bank’s website or app, or by visiting a nearby branch. Choose your deposit amount and tenure as per your preference.

2. Choose an Eligible Credit Card: 

   Yes Bank offers three credit cards that can be issued against your fixed deposit. Select the one that suits your needs.

3. Submit the Application: 

   Once your FD is in place, apply for the credit card through Yes Bank’s app, website, or by visiting a branch. You will need to mention the FD details during the application.

4. Provide KYC Documents: 

   Submit basic KYC documents such as your PAN card, Aadhaar card, and a passport-sized photograph. You do not need to provide income proof since the FD acts as security.

5. Receive Card Approval and Delivery: 

   After reviewing your documents, the bank will approve your application, usually within a few days. You will receive a digital welcome kit, and the physical card will be delivered to your registered address.

6. Activate Your Credit Card: 

   Once you receive the card, activate it using Yes Bank’s mobile app, internet banking, or phone banking. You can then start using the card for purchases, bill payments, and online transactions.

Closure Process for Yes Bank Credit Card Against FD

If you wish to close your FD-backed credit card, the following is the step-by-step closure process for a Yes Bank credit card against FD:

1. Clear Outstanding Dues:

   Ensure that your credit card has no pending dues. All payments, including EMIs, interest charges, and fees, must be settled in full before initiating the closure request.

2. Submit a Closure Request: 

   You can request card closure through Yes Bank’s mobile app, internet banking, phone banking, or by visiting the nearest Yes Bank branch. Choose the most convenient channel for you.

3. Deactivation of the Card: 

   Once the request is submitted, the bank will deactivate your primary credit card along with any add-on cards linked to it.

4. Release of Fixed Deposit Lien: 

   After the card is successfully closed and no dues are pending, Yes Bank will release the lien on your fixed deposit. This makes your full FD amount accessible again.

5. Receive Confirmation: 

   You will receive confirmation of the card closure and FD lien release via SMS or email. It's advisable to keep this confirmation for future reference.

Who Should Consider a Yes Bank Credit Card Against an FD?

Yes Bank credit card against FD is a suitable choice for the following individuals:

• First-Time Credit Users: Students, young professionals, and homemakers with no prior credit history can use this card to start building a credit score without the need for income proof.
• Individuals with Low or No Income Documents: Freelancers, self-employed individuals, or those without a regular salary slip can qualify easily since the card is issued against a fixed deposit.
• People Looking to Rebuild Credit: If your credit score is low or you’ve been denied unsecured cards, this secured card can help you improve your score through responsible usage.
• Cautious Spenders: Anyone who prefers to spend within limits and wants the safety of an FD-backed credit limit may find this a secure way to access credit.

Key Takeaways 

The Yes Bank credit card against FD is issued against a fixed deposit held with the bank and can be availed without the need for income proof or credit history. These Yes Bank cards offer standard credit card features such as online transactions, bill payments, EMI conversion, and contactless payments. The fixed deposit remains active and continues to earn interest at the applicable FD interest rate. The credit limit typically ranges from 80% to 90% of the FD amount, depending on the bank’s risk evaluation.