Credit Card Against Fixed Deposit: A Smart Choice for Beginners
Getting a credit card in India can be difficult if you do not have a regular income or a credit history. Most banks ask for salary slips, job details, and a good credit score before approving a credit card. This becomes a problem for students, freelancers, homemakers, and first-time earners. In such cases, a credit card against a fixed deposit can be a simple and practical solution.
A credit card against a fixed deposit, also called a secured credit card, allows you to get a credit card by keeping your own money as security with the bank. It is one of the easiest and safest ways to start your credit journey in India.
What Is a Credit Card Backed by a Fixed Deposit?
A credit card against a fixed deposit is provided by a bank when you establish or link an existing fixed deposit account with them. The fixed deposit works as security for the credit card. Since the bank already holds your money, it does not depend heavily on your income or credit score.
Usually, the credit limit is around 75 percent to 90 percent of the fixed deposit amount. For example, if you create a fixed deposit of ₹20,000, the bank may give you a credit limit of ₹15,000 to ₹18,000. Your fixed deposit remains safe and continues to earn interest during this period. This card can be used just like a regular credit card for online shopping, bill payments, offline purchases, and EMI options, depending on the bank.
Who Is Eligible to Apply for a Credit Card Against a Fixed Deposit?
This type of credit card is useful for people who cannot easily get a regular credit card.
- Students without a regular income
- Fresh graduates starting their careers
- Freelancers and gig workers with uneven income
- Homemakers without salaried employment
- Applicants with an underdeveloped or low credit profile
If you fall into any of these categories, a secured credit card can help you start building your credit profile.
Benefits of Credit Card Against Fixed Deposit
A credit card backed by a fixed deposit offers multiple benefits to the cardholder.
- Easy approval without income proof or salary slips
- Helps build or improve credit score with regular usage
- Fixed deposit continues to earn interest
- Low risk for beginners
- Available with low fees or lifetime free options
When you pay your bills on time and keep your spending under control, the bank reports your activity to credit bureaus. Over time, this helps you become eligible for better financial products.
Top Banks Offering Credit Cards Against Fixed Deposit in India
Many banks in India offer secured credit cards with different features.
- SBI Card Unnati with a minimum fixed deposit of ₹25,000
- HDFC Bank Credit Card Against FD starting from ₹15,000
- Axis Bank Insta Easy Credit Card with FD starting at ₹20,000
- Kotak 811 Dream Different Credit Card with FD from ₹10,000
- IDFC FIRST WOW Credit Card offering up to 100 percent FD value as limit
Each card has its own benefits, so comparing them before applying is a good idea.
Eligibility Criteria for Credit Card Against FD
The eligibility criteria are straightforward and easily attainable:
- Applicant must be 18 years or older
- Must be able to open a fixed deposit (usually ₹10,000 or more)
- Valid PAN card and Aadhaar required
No job proof, income documents, or credit score is required in most cases.
Application Process for a Credit Card Against a Fixed Deposit
The application process depends on whether you already have a fixed deposit with the bank.
If you do not have an FD, you first need to open one with the bank offering the secured credit card. This can be completed either by visiting a bank branch or through online channels. After the FD is created, you can apply for the credit card. Some banks may offer the card automatically with the FD.
If you already have a fixed deposit, you can apply directly through the bank’s website, mobile app, or branch. The bank will link your FD to the credit card and issue the card after verification.
Documents Required for Secured Credit Card
The documents required depend on whether you already have a fixed deposit with the bank.
| Situation | Documents Required |
|---|---|
| Existing FD holder | Usually no new documents required; existing KYC is used |
| New FD applicant | PAN card as proof of identity, along with Aadhaar card, Passport, Voter ID, or a recent utility bill as proof of address. |
In some cases, the bank may recheck your address or identity details.
Things to Keep in Mind Before Applying
Before applying for a secured credit card, remember these important points.
- Always pay your credit card bills on time
- Missed payments can lead to recovery from your fixed deposit
- Your fixed deposit remains locked while the card is active
- Early FD withdrawal may require closing the credit card
- Interest and late payment charges still apply
Using the card responsibly is important to avoid penalties and credit score damage.
Bottom Line
A credit card against a fixed deposit is a great option for beginners in India who want to start building a credit history. It gives you access to credit without income proof or a credit score, while keeping your money safe and earning interest. With timely payments and careful usage, this type of credit card can help you move towards unsecured credit cards, loans, and better financial opportunities in the future.
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