Credit Card against FD: Check Eligibility & Benefits

A credit card is not just a convenience today; it’s more of a need. Credit cards help you to build and maintain your credit score. However, not everyone qualifies for a regular credit card due to a low CIBIL score or insufficient credit history. A credit card against FD helps rebuild your credit score. 

Let’s explore the concept of FD credit cards, their benefits, eligibility criteria, how to apply for them, and who should consider these credit cards.  

What is Credit Card against Fixed Deposit?

An FD credit card is a unique option offered by banks, where you can obtain a credit card despite having a low or insufficient credit score. Your fixed deposit acts as a collateral and allows you to use the total FD amount and pay it back. The credit limit on these cards allows you to use around 70% to 90% of the principal amount of your FD. The credit limit issued on these credit cards entirely depends on the bank.

One of the best advantages of having an FD credit card is that your FD continues to earn interest. So, you can use your fixed deposit amount for day-to-day expenses and earn interest simultaneously.

Benefits of Credit Card against FD

1. Easy Approval Process

Since the credit card is secured against a fixed deposit, the approval process is generally quicker and less stringent than traditional credit cards. As long as the applicant meets the minimum fixed deposit requirements, getting a credit card becomes much easier.

2. Builds Credit History

For individuals with no or poor credit history, a credit card against a fixed deposit provides an excellent opportunity to establish or improve their credit score. Responsible usage and timely repayments can significantly enhance their creditworthiness.

3. FD Continues to Earn Interest

The fixed deposit, used as collateral, still earns interest throughout the credit card tenure. Therefore, the individual continues to benefit from their savings while using the credit card for various transactions.

4. Lower Charges

Credit cards against fixed deposits often have lower fees, interest rates, and annual charges than regular credit cards. This makes it a cost-effective option for consumers.

5. Suitable for Financial Discipline

Since the credit limit is linked to the fixed deposit amount, it promotes financial discipline, as the cardholder must spend within the available credit limit.

Eligibility Criteria

Eligibility for a credit card against a fixed deposit is generally straightforward and accessible to many individuals. The primary requirements typically include:

  • Age: The applicant should be within the age group specified by the credit card issuer (usually 18 to 65 years).
  • Fixed Deposit: The individual must hold a fixed deposit with the bank or financial institution offering the credit card.
  • Minimum Fixed Deposit Amount: A minimum fixed deposit amount is required to be eligible for the credit card, which may vary from bank to bank.
  • KYC Documents: The applicant must provide the necessary Know Your Customer (KYC) documents, such as identity proof, address proof, and passport-sized photographs.

How to Apply for a Credit Card against FD?

Applying for an FD credit card is a relatively simple process. Here are the steps to follow:

  • Step 1 – Choose the Bank:
    Start by selecting a reputable bank that offers this type of credit card. Look for favourable terms, interest rates, and credit limits.
  • Step 2 – Open a Fixed Deposit:
    Once you have selected the bank, open an FD account with the minimum amount required or your desired amount.
  • Step 3 – Credit Card Application:
    Visit the bank’s website or branch to complete the application form. Attach the necessary documents as per the bank’s requirements.
  • Step 4 – Fixed Deposit Pledge:
    The bank will put a lien on the fixed deposit amount, which acts as collateral for the credit card.
  • Step 5 – Credit Card Issuance:
    Once the bank verifies the application and documents, they will issue the credit card against a fixed deposit with the assigned credit limit.

Who Should Apply for an FD Credit Card?

A credit card against a Fixed Deposit is an excellent option for various individuals, including:

  • First-time Credit Card Users: Those with no prior credit history and who are finding it challenging to get a regular credit card can benefit from this secured credit card to start building their credit.
  • Individuals with Low Credit Scores: Individuals with a less-than-desirable credit score can also use this opportunity to improve their creditworthiness over time.
  • Financial Discipline Seekers: If you want to avoid overspending and limit your credit usage to a fixed deposit amount, this credit card option ensures financial discipline.
  • Risk-Averse Consumers: An FD credit card offers peace of mind for risk-averse individuals who do not want to risk overspending.


Credit card against FD is a valuable financial tool that opens the doors to credit for individuals who might otherwise struggle to obtain traditional credit cards. By utilising a fixed deposit as collateral, applicants can enjoy the convenience of a credit card while simultaneously building or rebuilding their credit history. FD credit card is a stepping stone towards a stronger financial future and infuses valuable financial discipline.


Scroll to Top