Best Credit Cards Against FD in India 2024

Learn how secured credit cards work, their benefits, and compare top options like the Step UP Credit Card from SBM Bank and SBI Unnati Credit Card. Discover key features, eligibility criteria, and get answers to common questions to help you make informed financial decisions.

What is a Credit Card against FD? 

A credit card against a fixed deposit (FD) is a secured credit card. To get this type of card, you need to have a fixed deposit account. Banks like SBI and SBM Bank (India) offer this feature. 

How Does It Work? 

• The FD acts as collateral for the credit card. 
• The credit limit is usually 80%-90% of the FD amount. 
• The FD continues to earn interest even when it's lien-marked. 

If you miss a credit card payment, the bank can use your FD to recover the amount due. These secured credit cards typically have lower fees and are easier to get approved than unsecured credit cards. 

Best Credit Cards against Fixed Deposits in India for 2024 

Here are some secured credit cards offered by major banks in India: 

SBM Bank (India) Ltd. - Step UP Credit Card 

• Minimum FD Amount: Rs. 2,000 
• Features: Up to 90% credit limit of FD, no annual fee, earns 6% p.a. interest, 1 reward point per Rs. 100 spent, no savings account needed, up to 50 days of interest-free credit. 

State Bank of India - SBI Unnati Credit Card 

• Minimum FD Amount: Rs. 25,000 
• Features: No annual fee for first 4 years, 1 reward point per Rs. 100 spent, 1% fuel surcharge waiver, milestone rewards, attractive offers, balance transfer on EMI. 

ICICI Bank - ICICI Instant Platinum Credit Card 

• Minimum FD Amount: Rs. 50,000 
• Features: No joining or annual fees, BookMyShow discount, dining offers, redeemable reward points. 

Kotak Mahindra Bank - Kotak 811 #DreamDifferent Credit Card 

• Minimum FD Amount: Rs. 5,555 (for 811 saving account customers), Rs. 10,000 (for Non 811 saving account customers) 
• Features: Lifetime free, 90% credit limit of FD, 1% fuel surcharge waiver, bonus reward points, milestone cashback or PVR tickets. 

IDFC FIRST Bank - IDFC FIRST WOW! Credit Card 

• Minimum FD Amount: Rs. 10,000 (Rs. 25,000 for NRIs) 
• Features: 100% credit limit of FD, high FD interest rate, dining discounts, personal accident cover, fuel surcharge waiver, welcome cashback, complimentary roadside assistance. 

Eligibility Criteria 

Only individual residents with a fixed deposit can apply for a credit card against FD. The following are not eligible: 

• Hindu Undivided Family (HUF) 
• Minors (below 18 years) 
• Foreign nationals 
• Third parties 
• Partnership firms 
• Trusts 
• Societies 
• Tax-saving FD depositors 
• NRI fixed depositors 

Who Should Apply? 

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

• Need a credit card but can’t get one 
• Have irregular income 
• Have poor or no credit history 
• Lack income proof 
• Are freelancers or homemakers 
• Have entry-level jobs 

Benefits of Credit Card against FD 

• Credit limit is based on FD amount (80%-90%) 
• Low or no fees 
• Lower interest rates compared to unsecured credit cards 
• No income proof needed 
• No credit score required, helps build one 
• Minimal paperwork 
• Instant access like virtual Step UP Credit Card 

FAQs 

1. What is a secured credit card?

A secured credit card is backed by collateral, such as a fixed deposit. 

2. How much credit limit can I get against my FD?

Generally, 80%-90% of your FD amount. 

3. Do I need a credit score to get a credit card against FD?

No, but having one helps build your credit score. 

4. Are there fees for credit cards against FD?

Fees are typically lower than those for unsecured credit cards. 

5. What happens if I miss a payment?

The bank can use your FD to recover the amount due. 

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