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Credit Card Against Fixed Deposits
A fixed deposit credit card or FD linked credit card still lets you earn interest on your deposit. At the same time, you can build your credit profile by paying bills on time. Many banks now offer an FD credit card apply online option, making the process quick.
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Last Updated: 9 March 2026
What are Credit Cards Against Fixed Deposits?
An FD credit card is a secured card issued against your own fixed deposit. In simple words, a credit card against a fixed deposit means your FD acts as collateral, and the bank gives you a spending limit based on that deposit. If someone asks what an FD credit card is, the answer is straightforward. It is a FD backed credit card where your money stays in the bank as security, and you get a card to use like any normal credit card. This type of credit card against an FD is useful for people with low or no credit history. Since the bank holds your deposit, approval is easier. The limit is usually 75% to 90% of the FD amount. That is why checking the credit card against the FD minimum amount is important before applying.
How do Secured Credit Cards Function?
A credit card against an FD works a little differently from a regular card, though usage feels the same. When you open a fixed deposit and opt for a FD backed credit card, the bank marks a lien on that deposit. You cannot withdraw the FD until the card is closed.
The credit limit on an FD credit card is usually a fixed percentage of your deposit. For example, if you place ₹50,000 as an FD, the limit may be ₹40,000-₹45,000 depending on the bank’s policy. This structure defines the FD-backed credit card, meaning in practical terms, your spending power depends on your own deposit.
You swipe, shop online, pay bills, or convert purchases using a credit card EMI calculator just like any other credit card. The only difference is security. If you fail to repay, the bank can recover dues from the FD. A fixed deposit credit card, therefore, lowers approval risk and makes it easier to get the best FD credit card in India, especially for first-time users.
What are the Key Features of Credit Cards Against Fixed Deposits?
A credit card against a fixed deposit keeps things simple. You place money in a fixed deposit, and the bank issues a card linked to it. The structure stays transparent, which is why many people look for the best credit card against FD in India when starting their credit journey. Here are the core features without repeating what’s already covered:
- FD Linked Credit Card Structure: The card remains active as long as the fixed deposit stays intact.
- Credit Limit Range: Usually 75% to 90% of the FD amount, depending on the bank.
- Low Entry Barrier: Approval is easier compared to unsecured cards.
- Interest on FD Continues: Your deposit keeps earning interest while supporting the FD-based credit card.
- Upgrade Possibility: Good repayment behaviour may later qualify you for an unsecured card.
- Credit Score Building: Timely payments help improve your profile.
What are the Top Credit Cards Against Fixed Deposits in India?
When choosing a credit card against FD, the card benefits matter just as much as the deposit requirement. Not every FD credit card offers the same rewards or flexibility. Some focus on cashback, others on lounge access or zero fees. Below is a list of some popular options in India. These are commonly compared while searching for the best FD credit card in India.
| Bank / Card | Minimum FD | Credit Limit | Key Highlights | Annual Fee |
|---|---|---|---|---|
| IDFC FIRST WOW Credit Card | ₹5,000 | Up to 100% of FD | Zero forex markup, no annual fee, reward points | Nil |
| SBI Unnati Credit Card | ₹25,000 | Up to 90% of FD | No annual fee for first 4 years, fuel surcharge waiver | ₹499 (after 4 years) |
| Axis Bank Insta Easy Credit Card | ₹20,000 | Up to 85% of FD | 50-day interest-free period, reward points | Nil |
| ICICI Bank Coral Secured Card | ₹30,000 | 85%-90% of FD | Dining offers, movie benefits, lounge access | ₹500 |
| Bank of Baroda Prime | ₹15,000 | Up to 90% | Cashback + reward points | Nil |
Disclaimer: The details mentioned above, including minimum FD requirement, highlights, and charges, are indicative and may change as per bank policy.
Is It Good to Have a Credit Card Against Fixed Deposits?
A credit card against an FD makes sense if you cannot get an unsecured card due to low or no credit history. Since it is secured, approval is easier, and the risk to the bank is lower. That is why many people start their credit journey with an FD-based credit card. Here is when it works well:
- You want to build or repair your credit score.
- You prefer controlled spending with a fixed limit linked to your deposit.
- You want a backup payment option without breaking your fixed deposit.
What Are the Benefits of Credit Cards Against Fixed Deposits?
An FD credit card is often chosen for control and access. It gives you the convenience of a regular credit card, while your savings remain intact in the fixed deposit. Since it is a credit card against a fixed deposit, banks are more flexible with approvals.
- Build Credit Score: Timely payments on a credit card against an FD help create or repair credit history.
- Lower Risk of Rejection: Approval chances are higher compared to unsecured cards.
- Interest on FD Continues: Even with an FD-backed credit card, your deposit keeps earning interest.
- Controlled Spending Limit: The limit is linked to your FD, reducing overspending risk.
- Access to Rewards & EMI Options: Many cards offer cashback, reward points, and instalment plans.
What Are the Eligibility Criteria for Credit Cards Against Fixed Deposits?
Before applying for a credit card against a fixed deposit, banks check a few simple conditions. Since this is a secured product, approval is usually easier than an unsecured credit card, but certain basics must still be met.
- Age Requirement: Generally 18-21 years and above, depending on the bank.
- Fixed Deposit Account: You must open or already hold an FD with the issuing bank.
- Minimum Deposit Amount: The credit card against the FD minimum amount usually starts from ₹5,000 to ₹30,000, depending on the issuer.
- Tenure of FD: Most banks require a minimum FD tenure of 6-12 months.
- Residential Status: Indian residents are eligible. Some banks may allow NRIs with conditions.
What Documents Are Required for Credit Cards Against Fixed Deposits?
Since a credit card against an FD is secured, paperwork stays limited. The bank mainly verifies identity and the fixed deposit details.
- Identity proof (PAN, Aadhaar, Passport, Driving Licence)
- Address proof (Utility bill, Aadhaar, Passport, Rental agreement)
- PAN Card (mandatory for most issuers)
- Fixed Deposit receipt or confirmation
- Recent photograph (if applying offline)
What Are the Steps to Apply for Credit Cards Against Fixed Deposits?
Applying for an FD credit card is fairly direct. Since it is backed by your deposit, banks do not follow the same strict screening used for unsecured cards. You can complete the FD credit card application process online in a few steps.
- Open a Fixed Deposit: Choose the bank and create the FD for the required minimum amount.
- Select the Card Variant: Pick the suitable FD-based credit card offered by the bank.
- Submit Application: Apply online or at the branch with basic KYC details.
- Lien Marking on FD: The bank marks a lien on your deposit to issue the FD-backed credit card.
- Card Issuance: Once approved, the card is dispatched and activated.
FAQs
What is an FD credit card, and how is it different from a regular card?
An FD credit card is a secured card issued against your fixed deposit. Unlike unsecured cards, this one is backed by your deposit, which reduces the bank’s risk.
What is FD backed credit card mean in simple terms?
FD-backed credit card meaning refers to a card issued after you pledge a fixed deposit. If dues are unpaid, the bank can adjust the amount from the FD.
What is the minimum amount required for an FD credit card?
The minimum amount usually starts from ₹5,000 to ₹25,000, depending on the bank. The credit limit is generally 75%-90% of the FD value.
Which is the best FD credit card in India?
The best FD credit card in India depends on your needs. Some focus on cashback, others on travel perks. Compare benefits before choosing the best credit card against an FD in India.
Is a fixed deposit credit card suitable for low-credit-score users?
Yes. A fixed deposit credit card or FD based credit card is designed for people with low or no credit history. It helps build credit with disciplined usage.
