Credit Card Against FD (FD Credit Card)

A fixed deposit is one of the most preferred modes of investment in India and an FD that also provides you with a credit card, i.e. a credit card against FD, is a win-win situation for the risk-averse investors/customers and for those who wish to build/improve their credit score.

What is a Credit Card against FD?

A credit card against fixed deposit or FD is a secured credit card. Having a fixed deposit account is the prerequisite of getting a credit card against FD. Many banks like SBI, SBM Bank (India), etc. offer this feature with their FDs.

The prime feature of this credit card is that the linked FD is lien marked, i.e. acts as collateral. The credit limit is generally 80%-90% of the FD amount. It should be noted that the lien-marked FD keeps on earning interest.

In case the cardholder misses the payment of the monthly credit bill, the bank can redeem the linked FD to recover the outstanding amount. Fees and charges on a credit card against FD are usually lower than an unsecured card and these cards are easily approved.

Step UP Credit Card

SBM Bank (India) Ltd. with Paisabazaar as co-branded partner has introduced a credit card against fixed deposit – Step UP Credit Card. This card is designed especially to cater to the needs of an average salaried individual. The minimum FD amount is kept only at Rs. 2,000 thus making it quite affordable. This is a 100% pre-approved credit card and takes minutes to apply.

While the FD in the bank earns guaranteed interest, the Step UP card adds to the purchasing power of the depositor. Let’s look at its features.

Features of Step UP Credit Card

The following are the prime features of the Step UP credit card: 

• Flexible credit limit
• Digitized application process – zero contact 
• Nil joining fee for FDs of more than Rs 5,000 (Rs. 250 + 18% GST for FD of up to Rs. 5,000)
• Nil renewal fee
• Helpful in building a strong credit score

Best Credit Cards against Fixed Deposits in India for 2026

Following is a list of secured credit cards offered by some major banks in India, with important features:

Quick Check: Fuel Credit Cards in 2026

Eligibility Criteria – Who can apply for credit card against FD?

The eligibility criteria for credit cards vary from one card to another. Banks in India issue credit cards against fixed deposits only to individual residents having a fixed deposit. The following persons are not eligible to avail of this facility:

• Hindu Undivided Family (HUF)
• Minors (below the age of 18 years)
• Foreign nationals
• Third parties
• Partnership firms
• Trusts
• Societies
• Depositors of tax-saving FD
• Depositors of NRI fixed deposits

Also, a credit card is not issued against those fixed deposits which are already marked as a lien (i.e. FD against which loan/overdraft has been taken).

Also Read: How much loan can I get against my FD?

Who should apply for credit card against fixed deposit?

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

• Need a credit card but are unable to get one
• Have an irregular income (or source of income)
• Have a poor credit history/no history 
• Do not have an income proof
• Freelancers, homemakers, etc.
• Have an entry-level jobs (with low income)

Benefits of Credit Card against FD

Those who have a bad credit history or an irregular income often find it difficult to get a credit card. In such cases, customers who have a fixed deposit can use their FD against which credit cards can be issued.

The following are some of the highlights of credit cards issued against fixed deposits:

• Credit limit not decided by the bank; depends on FD deposit amount (generally 80% – 90% of the FD amount)
• A fairly low fee charged or no fee charged by some banks
• Lower interest rates as compared to unsecured credit cards
• No income proof required
• No credit score required but helps build one
• No cumbersome paperwork 
• Instantly accessible like virtual Step UP Credit Card

Also Check: Best credit cards in India 2026

FAQs Related To Credit Card Against Fixed Deposit

Q1. Which bank gives a credit card against a fixed deposit?

A. There are a number of banks that offer credit cards against fixed deposits. Some of the best credit cards against fixed deposits are mentioned below:

• SBM Paisabazaar Step UP Credit Card
• SBI Unnati Credit Card
• Kotak Mahindra Bank Aqua Gold Credit Card
• ICICI Instant Platinum Credit Card
• Axis Bank Insta Easy Credit Card
• Bank of Baroda Assure Credit Card

Q2. What is the difference between an unsecured credit card and a credit card against FD?

A. An unsecured credit card is one that is issued without collateral. Such cards charge high fees and are offered only to those who meet the concerned bank’s eligibility criteria. Also, a good credit score and a regular income source are two vital factors for getting an unsecured credit card. 

Whereas a credit card against FD is a secured credit card, i.e. it is a lien marked against a fixed deposit. This FD is maintained in the concerned bank which issues this type of credit card. Factors like low/no credit score or no income proof do not affect such a card’s eligibility criteria.

These cards are easy to acquire and do not charge hefty fees. In case of a default from the card holder’s side, the bank reserves the right to settle missed/late payments by redeeming the lien marked fixed deposit. 

Q3. Can foreigners get a credit card against FD?

A. No. Banks do not extend this facility to foreign nationals.

Q4. Can I get 100% of my FD amount as a credit card limit?

A. Generally, banks provide up to 80% of the fixed deposit amount as the credit limit. 

Q5. Can I use my credit card against FD to withdraw cash at ATMs?

A. Yes. Most of the banks allow ATM withdrawals. Credit cards against fixed deposits are secured credit cards issued against the Fixed Deposit of an applicant. The credit limit on these cards is usually 80%-90% of the FD amount.

Q6. I do not have income proof. Can I get a credit card?

A. Yes. If you have a fixed deposit and your bank gives a credit card against it, you can go ahead and get a credit card against FD. 

No income proof? Apply for Step UP Credit Card, here.

Q7. What is the minimum Fixed Deposit amount for a credit card?

A. The minimum fixed deposit amount for a secured credit card varies from one bank to another. SBM Bank (India) Ltd. with Paisabazaar as co-branded partner offers a Credit card against FD (Step UP Credit Card) with a minimum deposit amount of Rs. 2,000.