March 13, 2025 · 13 mins read
Santosh Kumar
Fixed deposit is a method of investment where an individual can put in money for a fixed period of time and an absolute Fixed interest rate. This, in return, at the end of the term, can be withdrawn by the individual with interest. This method has helped many over time to save and manage investments and payments with efficiency, in India. Today’s India is headed to a digital economy where most of the payment platforms are created for the citizens to utilize. Individuals can now opt to apply for their fixed deposit account, online, or can prefer heading to their respective bank, in order to open a Fixed deposit account.
Fixed Deposit Credit Cards in India are terms as “Secured Credit Cards” as it is witnessed to be an ideal option for individuals who have little to NO Credit History. With a rapidly growing population, many citizens are seeking to acquire credit cards in order to manage finances, and some apply with little to NO credit history which typically is not considered by banks. But in 2025, Banks are raising a helping hand to those with such issues by providing credit cards against Fixed Deposits. To open a Fixed Deposit account, applicants can now apply online or by visiting the bank. A few banks, such as HDFC, Axis Bank and Paisabazaar, help applicants with the online process. In order to physically apply for a Fixed deposit Credit card, the applicant can visit these above-mentioned banks.
An FD Credit Card or a Fixed Deposit Credit card is a Credit Card used as collateral in order to secure the credit limit. Fixed deposit Credit cards are known to contain more relaxed eligibility criteria as compared to regular credit cards. A fixed deposit Credit card is also directly responsible for an individual's good credit history as it helps build a good credit history, which in turn helps an individual apply for more credit cards and multiple financial products.
Various banks such as Kotak Mahindra, IDFC First Bank and OneCard offer Fixed Deposit Credit cards.
There are a few factors to consider if an individual is interested in opening a fixed deposit or FD Credit Card account for themselves. To apply for a fixed deposit Credit card,
1: An individual is required to pledge a particular amount in their fixed deposit account.
2: The Fixed Deposit Account in the bank is known to secure the individual’s credit card.
3: The credit limit is directly based on the amount of money present or deposited in the fixed deposit account.
A few benefits that a Fixed Deposit credit card offers its users are as follows:
Eligibility: FD Credit Cards are known to have a more lighter eligibility criteria when compared to any other regular credit card.
Credit History: FD Credit Cards offer a good credit history if the Fixed deposit Credit card is used wisely.
More Credit: A good credit history is known to help individuals apply for even more credit cards and various other financial products.
Interest: An FD Credit Card is witnessed to continuously earn interest.
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There isn’t known to be a massive difference between the two, a regular Credit Card and an FD Credit Card, although they do have a few differences that distinguish the two, and they are as follows:
Income Requirements: To acquire a FD Credit Card, an individual is required to not present any additional income documents whereas, to acquire a regular credit card, and proof of income is required to be submitted.
Collateral: For a regular credit card, no collateral is required whereas for a FD Credit Card, FDs are kept as Collateral.
Credit Score: With a low credit score, an FD Credit Card can be acquired, whereas, to get a regular credit card, an individual is required to have a high credit score. Withdrawal: Before the FD credit card is closed, users cannot terminate their FD accounts but this isn’t the case for a regular credit card.
Credit Card Limit: Banks are known to use the fixed deposit amount value in order to decide the credit limits for a FD Credit Card. This credit limit ranges between 80% to 90% of the FD amount. For a regular credit card, the card providers decide the credit limit which is based on the applicant’s income and their credit score.
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While there are many Fixed Deposit Credit Cards, the best Fixed Deposit Credit card is known for being the Step Up Credit Card.
The minimum Fixed Deposit amount for a Step Up Credit Card is RS. 2,000, which makes this absolutely affordable for the citizens of India. The Step Up Credit Card is witnessed to be a 100% pre-approved credit card, which takes only a few minutes in order to apply. The Fixed Deposit in the bank is known to earn a guaranteed interest, while the Step Up Credit Card adds to the purchasing power of the person depositing.
Features Of A Step Up Credit Card
1: A few features of a Step Up Credit Card may include the following:
2: A flexible Credit limit
3: A zero-contact Application Process
4: A zero-amount joining fee
5: No Renewal Fee
6: A tool that helps build a strong credit score
Individuals can withdraw money from their Step Up Card although a feed will be charged of RS. 250 of the cash withdrawal.
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1: Secured By Fixed Deposit- The FD acts as a Collateral which makes the bank use the FD amount as security for the credit card.
2: No Credit History Required- FD credit cards are highly suitable for applicants with little to NO Credit History.
3: The Credit Limit for Credit Cards against Fixed Deposit ranges from 75% to 90% of the FD amount.
4: Quick & Easy Approval- Due to lower risk for the bank, acquiring an FD credit card is easier for applicants.
5: No Income proof is required to be presented by the applicant which makes it convenient and efficient for young adults and unemployed applicants to acquire a FD Credit Card.
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Only for individuals who have a fixed deposit, Banks of India issue an FD Credit card. The following are not permitted to hold an FD Credit Card:
1: HUF (Hindu Undivided Family)
2: Minors (18 years & below)
3: Foreign Nationals
4: Third Parties
5: Partnership Companies
6: Trusts & Societies
7: Tax-saving FD depositors
8: NRI FD depositors
Individuals who are known to be marked as “Lien” which is FD against a Loan, is not issues a Fixed Deposit credit card.
Individuals who must apply for a Fixed Deposit Credit card are as follows:
1: Individuals who are in requirement of a credit card but are unable to attain one.
2: Individuals who have an irregular income.
3: Individuals who hold a poor credit history or no credit history.
4: Individuals who do not have an income proof.
5: Individuals who are homemakers and freelancers.
6: Individuals who have an entry-level job along with a low income.
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A credit card against fixed deposit Credit limit is typically 75% to 90% of the fixed deposit amount and it continues to earn interest.
1: The credit limit is based on the following factors:
2: Based on Fixed Amount: The credit limit on an FD account is primarily dependent on the FD Amount pledged as collateral.
3: Based on Percentage of Fixed Deposit; Banks are known to offer a credit limit of 75% to 90% of the fixed deposit amount.
4: Based on Higher Fixed Deposit: The Higher the fixed deposit, the higher the credit limit.
There is no maximum credit limit for credit cards against Fixed Deposits as most banks. However, the maximum amount for recurring deposits is typically RS. 10 Lakhs.
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In order to apply for a Fixed Deposit credit card such as the Step Up Credit Card, the following simple steps must be followed:
1: From the credit card company, an application form shall be provided, which must be filled out.
2: Fill in your Legal Name.
3: SSN or ITIN is required to be provided.
4: Date Of Birth must be filled out.
5: Address must be entered.
6: The income must be reported.
A Low credit and CIBIL Score is known to speak volumes about an individual holding a credit card or an Fixed Deposit credit card in India. A Low CIBIL score tells the bank that the individual is not eligible for making on time repayments, and managing finances with ease. Loans are accepted lesser and interest rates are increased .
A few banks that allow individuals to claim an FD credit card in India, with a low CIBIL Score are as follows:
1: IDFC FIRST WOW Credit Card
2: SBI Card Unnati
3: Capital One Secured
4: OneCard Credit Card
5: Axis Bank Insta Easy Credit Card
6: HDFC Money-Back Credit Card
If in any case, an individual does not have a CIBIL Score and FD, the following steps can be followed in order to attain a Credit Card, in India.
1: Opt for a Bank that offers credit cards against savings accounts.
2: Grab a prepaid credit card
3: Apply for a secured credit card
4: Make sure a Co-Signer is present.
5: Receive the Credit Card.
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In order to utilize the Fixed Deposit Credit Card in India, there exists no interest on the credit cards. Individuals can get 0% interest on their credit cards if they check their CIBIL Score. The CIBIL Score decides if an individual is capable enough to hold a credit card and is eligible to make on-time repayments. With a poor or average CIBIL Score, the banks get an image of an irresponsible individual who is not able to manage their finances and pay on time, and such an impression can affect the decision of the bank to trust the individual.
To attain a good credit score and CIBIL Score, individuals must note that all repayments are done on time along with any interest if available. Individuals are required to maintain a good credit history with zero fraudulent activities. This effects the trust of the bank on the individuals. Such responsibilities are too heavy on a young adult; hence, there exists a co-signer or a guarantor.
In today's time, there are multiple ways of managing finances and any sort of investment, especially with the digital wave that's taken over the nation. Everything happens digitally, almost, and nobody is being harmed on a higher level, making such practices safe and to go. Backed by the Reserve Bank of India, digital payments also have rules and regulations as they keep the system flowing one way and are not influenced manually. Creating FD accounts and attaining a credit card as an adult or as a youngster is just a cakewalk, although a few factors could make this cakewalk unsuccessful.
To say the least, the best Fixed Deposit Credit Cards in India are offered by Axis Bank, IDFC First Bank, SBI Bank, and HDFC Bank. All these banks mentioned above have credit cards against Fixed Deposits for individuals looking to manage their finances, especially those as young as 18. As we see a shift of youngsters being straight forward about their careers, finances, and investments, Banks have also taken initiatives to help youngsters manage their career goals and financial goals with a bit of convenience. Be it student credit cards or just credit cards against Fixed deposits; individuals have many benefits that come along with such credit cards, although credit cards are considered a risk when it comes to finances.
One factor to keep in mind is that the CIBIL score must not be sacrificed. Every financial move must add to the CIBIL score, making it a good one. Students or youngsters who do not have a CIBIL Score can still get a credit card through student loans, etc.
The credit limit for credit cards against Fixed Deposits is typically 75% to 90% of the Fixed Deposit amount. There is no Maximum limit for Fixed Deposit Credit Cards, although the highest amount for Recurring Deposits is usually RS. 10 Lakh. The minimum deposit amount for Fixed Deposits is usually between RS. 1,000 and RS. 10,000, as per the Reserve Bank of India.
Meanwhile, depositors who have invested more than RS. 1 Cr in Fixed Deposits will be eligible for customized interest rates. TDS, Tax Deducted at Source, is applied to interest earned on Fixed Deposits if it exceeds RS 40,000 in a year. An interest rate of 10% will be charged for RS 40,000 and above or 20% if the individual doesn't have a PAN Card.
Ans- Yes, the Reserve Bank of India (RBI) has a set of rules and guidelines for maximum and minimum amounts.
Ans- Yes. One can indeed Deposit an amount of RS. 20 Lakhs in the Fixed Deposit (FD) Account.
Ans- Banks known to offer Credit Cards against Fixed Deposits in India are Axis Bank, HDFC Bank, IDFC First Bank, SBI Bank, and Kotak Mahindra Bank.
Ans- Yes, Airtel Finance also is witnessed offering Fixed Deposit Credit Cards in India along with Co-Branded Credit Cards. This can be applied through the Airtel Application itself.
Ans- TDS, or Tax Deduction at Source, is a tax amount that is deducted from the taxpayer. If the FD interest is below RS. 40,000, it shall be exempted from TDS. For interest above RS. 40,000, the TDS shall be 10%, or 20% if the one applying does not have a PAN Card
Ans- Yes, Fixed Deposits can be liquidated upon request to the credit card team, although the Credit Card account will be closed and cannot be used further.
Ans- Yes, the State Bank of India does provide a Credit Card against Fixed Deposits, the SBI Unnati Credit Card.
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