FD Credit Card

FD-backed credit cards work like regular credit cards and are particularly suitable for first-time credit users and those looking to establish or rebuild their credit profile. Some of the key features and benefits of FD credit cards are:

The above-mentioned features of cards against fixed deposits make them more easily accessible for those who are beginning their credit journeys or need to build their credit score. For instance, SBM ZET is a lifetime free FD credit card offered against an FD of minimum Rs. 2,000 and does not require any credit history, income proof, or any other documentation.

Also Check: Best Credit Cards in India 2026

A secured credit card against FD is an ideal choice for those who:

• Consumers who need a credit card but are unable to get one due to limited credit history
• Those with an irregular source of income
• Applicants looking for credit cards for low CIBIL score or those with little or no credit history
• Individuals seeking credit cards without income proof
• Freelancers, homemakers, gig workers, and other self-employed individuals
• Consumers with entry-level jobs or low income
• Consumers exploring credit cards for students to start their credit journey

An FD credit card works like a regular credit card, with one key difference - the card is backed by your fixed deposit, which acts as collateral. Here is how an FD credit card works:

• Open a Fixed Deposit: Start by opening a fixed deposit with a bank that offers credit cards against FD. The minimum deposit amount varies from one issuer to another.
• FD is Marked as Collateral: Once you apply for the credit card, the bank places a lien on your fixed deposit. This means the FD serves as security against the credit card until the account is closed or all dues are cleared.
• Credit Card is Issued: After verifying your KYC documents and processing the application, the bank issues your FD-backed credit card.
• Credit Limit is Assigned: The credit limit is usually 80% to 90% of the fixed deposit amount, depending on the issuer's policies. For example, an FD of Rs. 50,000 may offer a credit limit of up to Rs. 45,000.
• Use the Card for Daily Spends: You can use the card for online and offline purchases, bill payments, UPI transactions, and other day-to-day spends, just like a regular credit card.
• Repay Bills on Time: Pay your monthly credit card bills on time and in full to avoid interest and late payment charges. Timely repayments are reported to credit bureaus, helping you build a positive credit history and improve your credit score over time.

The minimum fixed deposit required for a credit card against FD varies from one issuer to another. The table below shows the popular FD credit cards along with their minimum fixed deposit requirement, helping you choose an option that best suits your budget and requirements:

Although FD-backed credit cards have simpler eligibility requirements than regular credit cards, applicants must still meet certain conditions as per the card issuer. Unlike regular credit card eligibility criteria, which often consider factors such as income, employment status, and credit history, eligibility for an FD-backed credit card primarily depends on opening and maintaining a fixed deposit with the card issuer. To apply for a credit card against a fixed deposit, you need to meet the following requirements:

• Minimum Age: Applicants should generally be at least 18 years old. Some issuers may require the applicant to be 21 years or above.
• Fixed Deposit with the Issuer: You must open or maintain a fixed deposit with the bank or financial institution issuing the credit card. The minimum FD amount varies by issuer.
• KYC Compliance: Valid KYC documents, such as Aadhaar, PAN, passport, voter ID, or driving licence, must be submitted for identity and address verification.

While the applicable charges vary across issuers and card variants, some of the common charges applicable on an FD credit card are given in the table below:

Note: The exact charges vary from one issuer to another. Always refer to the card's most important terms & conditions (MITC) before applying to understand the applicable fees and charges.

You can follow the below-mentioned steps to apply for an FD-backed credit card via Paisabazaar:

1. Click here and enter your mobile number and verify with an OTP.
2. Check the credit card offers available on your profile.
3. Choose a secured credit card as per your requirements.
4. Provide additional KYC details like PAN, Aadhaar, etc.
5. You will be redirected to the respective issuer’s website where you need to open a fixed deposit.
6. Once approved, your credit card will be delivered to your registered mailing address within 5-7 working days.

Note: Besides Paisabazaar, you can also apply for an FD-backed credit card directly through the official website or branch of the respective card issuer.

Before applying for an FD-backed credit card, consider the following factors to choose the right card as per your needs:

• Choose an Appropriate FD Amount: Your credit limit is usually linked to the value of your fixed deposit. Select an FD amount that provides a credit limit suitable for your spending needs.
• Compare Fees & Charges: Check the joining fee, annual fee, finance charges, late payment fee, and other applicable charges before choosing a card.
• Look for Rewards/Cashback: Compare the rewards, cashback, lounge access, or other benefits offered by different FD credit cards to maximise value.
• Check the Minimum FD Requirement: Different issuers have different minimum fixed deposit requirements. Choose a card that aligns with your budget and financial goals.
• Pay Your Bills on Time: Timely repayments help you avoid interest and late payment charges while also building a positive credit history and improving your credit score.
• Read the Card's Terms & Conditions: Review the issuer's policies regarding credit limit, reward redemption, and FD closure before applying.

Here is the list of popular issuers offering FD credit cards: