A credit card against a Fixed Deposit (FD) is one of the easiest ways to get a credit card if you do not meet the eligibility requirements for a regular unsecured credit card.
Whether you are a student, homemaker, first-time credit user, or someone with a low credit score, an FD-backed credit card can help you build a strong credit history while enjoying the benefits of a credit card.
Since the fixed deposit acts as security for the bank, approval is generally quick and does not require a high income or excellent credit score.
Key Highlights
What is a Credit Card Against FD?
A credit card against FD is a secured credit card issued against a fixed deposit maintained with the bank.
Unlike traditional credit cards, where approval depends heavily on income and credit score, the bank uses your FD as collateral.
Because the bank already has security in the form of your deposit, it takes significantly lower risk while issuing the card.
This makes FD-backed credit cards one of the easiest credit cards to obtain in India.
How Does a Credit Card Against FD Work?
Step 1: Open a Fixed Deposit
You create a fixed deposit with the bank.
The minimum FD requirement varies from bank to bank and may start from ₹2,000 to ₹25,000 depending on the issuer.
Step 2: Lien is Marked on the FD
The bank places a lien on the deposit.
This means:
- You continue earning FD interest
- The FD remains locked while the card is active
- The bank can use the FD if you default
Step 3: Credit Limit is Assigned
The credit limit is usually linked to the FD amount.
Most banks offer:
- 75% to 90% of FD value
- Some banks may offer up to 100%
Step 4: Use the Card Normally
You can:
- Shop online
- Pay utility bills
- Earn reward points
- Build credit history
just like a regular credit card.
Why Should You Get a Credit Card Against FD?
Easy Approval
Approval is much easier because the card is backed by collateral.
Build Credit Score
Responsible usage helps establish or improve your credit score.
No Income Proof Requirement
Most banks do not require salary slips or income documents.
Earn Interest on FD
Your fixed deposit continues earning interest while serving as security.
Access Credit Facilities
A good repayment history can improve eligibility for:
- Personal loans
- Home loans
- Car loans
- Premium credit cards
Best Credit Cards Against FD in India
IDFC FIRST WOW Credit Card
- Minimum FD: ₹20,000
- Up to 100% credit limit against FD
- Low forex markup
- Lifetime free card
Kotak 811 DreamDifferent Credit Card
- Minimum FD: ₹10,000
- Up to 90% of FD value as credit limit
- Reward points on spends
- Fuel surcharge waiver
ICICI Bank Instant Platinum Credit Card
- Minimum FD: ₹50,000
- Quick approval
- Reward points
- Interest earned on FD continues
SBI Card Unnati
- Minimum FD: ₹25,000
- Annual fee waiver for initial years
- Fuel surcharge waiver
- Reward points on spending
Axis Bank Insta Easy Credit Card
- Credit limit linked to FD amount
- Reward benefits
- Cashback and merchant offers
Who Can Apply for a Credit Card Against FD?
Students
Students with an FD can easily get a credit card without income proof.
Homemakers
Homemakers who maintain deposits can qualify for secured credit cards.
First-Time Credit Users
Ideal for building a credit profile from scratch.
Low Credit Score Holders
Individuals with poor or limited credit history can improve their credit score through responsible usage.
Existing FD Customers
Existing FD holders often enjoy a simplified application process.
Eligibility Criteria
While requirements vary among banks, common eligibility conditions include:
Minimum FD Amount
Generally between:
depending on the issuer.
Age Requirement
Most banks require applicants to be:
- At least 18 years old
- Some banks may require 21 years
Indian Residency
Applicants must be Indian residents.
KYC Compliance
Valid KYC documents must be submitted.
Documents Required
For existing FD holders, documentation requirements are minimal.
Common documents include:
- PAN Card
- Aadhaar Card
- Passport-size photograph
- FD account details
- Address proof (if required)
Income proof is generally not required.
Advantages of Credit Cards Against FD
Easy Eligibility
Suitable for individuals who may not qualify for regular credit cards.
Quick Processing
Approval is usually faster due to lower risk for the bank.
Credit Building Opportunity
Helps establish a strong repayment history.
Interest-Free Period
Most cards offer:
- 45 to 55 days interest-free period
on eligible transactions.
Reward Benefits
Many FD-backed cards offer:
- Cashback
- Reward points
- Shopping offers
- Fuel surcharge waivers
Better Future Credit Access
A strong repayment track record can improve eligibility for premium credit products later.
Are There Any Disadvantages?
FD Remains Locked
You cannot freely withdraw the FD while the card is active.
Lower Credit Limit
The credit limit is restricted to a percentage of the FD value.
Fewer Premium Benefits
Some secured cards may offer fewer premium benefits than high-end unsecured cards.
How to Apply for a Credit Card Against FD?
For Existing FD Holders
- Visit the bank website.
- Apply for an FD-backed credit card.
- Complete KYC verification.
- Receive approval and card delivery.
For New Customers
- Open a fixed deposit.
- Complete KYC formalities.
- Apply for the secured credit card.
- Receive the card after verification.
Bottom Line
A credit card against a fixed deposit is one of the best options for individuals who are new to credit or have difficulty qualifying for traditional credit cards. It offers easy approval, helps build a strong credit score, and allows cardholders to continue earning interest on their FD while enjoying the convenience of a credit card.
For students, homemakers, low-credit-score applicants, and first-time users, an FD-backed credit card can serve as an excellent starting point for building a healthy credit profile and accessing better financial products in the future.