Posted on: May 28, 2024 Posted by: admin Comments: 0
What is Credit Card Against Fixed Deposit?

In the realm of personal finance, credit cards against fixed deposits (FDs) have emerged as a secure and accessible option for many. These credit cards offer a unique blend of convenience and financial security by leveraging your fixed deposit as collateral. In this comprehensive guide, we explore the various aspects of credit cards against FDs, including their benefits, eligibility criteria, and their impact on credit scores.

Is It Good to Take a Credit Card Against FD?

Security and Assurance

One of the primary advantages of a credit card against FD is the security it offers. Since the credit limit is tied to the amount of your fixed deposit, the bank or financial institution is assured of repayment, reducing the risk involved. This makes it an attractive option for individuals with limited or poor credit histories.


For those who might face difficulties obtaining a regular credit card due to insufficient income documentation or a lack of credit history, a credit card against FD provides an alternative route. The approval process is generally simpler and faster, as the fixed deposit acts as collateral.

Credit Building

Using a credit card against FD responsibly can significantly help in building or improving your credit score. Timely payments and maintaining a low credit utilization ratio reflect positively on your credit report, thereby enhancing your creditworthiness.

Must read: Understanding Add-On Cards in Credit Cards

Can I Take a Credit Card on Fixed Deposit?

Eligibility Criteria

Most banks and financial institutions offer credit cards against FDs, but the eligibility criteria may vary. Generally, you need to have a fixed deposit account with the issuing bank. The minimum deposit amount required can range from INR 20,000 to INR 1,00,000, depending on the bank’s policies.

Application Process

The application process for a credit card against FD is relatively straightforward. Here are the typical steps involved:

  1. Fixed Deposit Account: Ensure you have a fixed deposit account with the bank.
  2. Application Form: Fill out the credit card application form, specifying that it is against your FD.
  3. Documentation: Provide the necessary documents, which usually include your FD receipt, ID proof, and address proof.
  4. Approval: Once the bank verifies your details, the credit card is issued.

Which is the Best FD-Based Credit Card?

Top Options in the Market

Several banks in India offer attractive FD-based credit cards. Here are some of the best options:

  1. SBI Card Unnati: This card is issued against a fixed deposit of INR 25,000 or more with SBI. It offers benefits such as reward points on every purchase and fuel surcharge waivers.
  2. ICICI Bank Coral Credit Card: Issued against an FD of INR 20,000 or more, this card comes with features like payback points on purchases, dining offers, and discounts on movie tickets.
  3. Axis Bank Insta Easy Credit Card: Available against an FD of INR 20,000, this card provides benefits like cashback on online shopping and fuel surcharge waivers.

Choosing the Best Card

When choosing an FD-based credit card, consider factors such as interest rates, fees, and additional benefits like rewards programs, discounts, and special offers. It’s essential to compare different options to find the one that best suits your financial needs and lifestyle.

Must read: How Many EMI Are Possible on a Single Card?

Does an FD Credit Card Affect CIBIL Score?

Positive Impact

A credit card against FD can have a positive impact on your CIBIL score, provided you use it responsibly. Here are a few ways it can influence your score:

  1. Timely Payments: Making timely payments on your credit card bills reflects positively on your credit report, improving your credit score.
  2. Credit Utilization Ratio: Keeping your credit utilization ratio low (i.e., using a small portion of your available credit limit) can enhance your credit score.
  3. Credit Mix: Having a mix of secured and unsecured credit products can positively affect your credit score by showcasing your ability to manage different types of credit responsibly.

Potential Risks

However, failing to manage your FD-based credit card responsibly can negatively impact your credit score. Missing payments, maxing out your credit limit, or defaulting on your credit card can harm your credit profile, leading to a lower CIBIL score.


A credit card against a fixed deposit is an excellent financial tool for those looking to secure credit without undergoing the stringent checks typically associated with unsecured credit cards. It offers numerous benefits, including easy approval, credit building opportunities, and financial security. By choosing the right FD-based credit card and managing it responsibly, individuals can not only meet their credit needs but also enhance their financial stability and creditworthiness.

Must read: How to Check if My Credit Card is Lifetime Free?

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