Credit Cards Against Fixed Deposit (FD)

Compare the amount of Fixed Deposit required to apply for the secured credit cards or the credit cards against FD among the below top banks in the India in 2025.

How Does a Secured Credit Card Work?

When you open a fixed deposit (FD) and apply for a credit card against it, no additional income proof is required. The FD acts as collateral for the credit card, and in case of payment default, the bank or issuer has the right to liquidate the deposit. Here are more details about how credit card against FDs work:

1. FD-Backed Credit Cards: Many Indian banks offer credit cards secured against fixed deposits, known as secured credit cards. 

1. Collateral Requirement: You must open an FD with a specified amount, which acts as collateral for the card. 

1. Ideal for Low Credit Score: These cards are suitable for those with low or no credit history, as the FD reduces the bank’s risk. 

1. Similar Functionality: Secured cards work like regular credit cards, offering a fixed credit limit for purchases and transactions. 

1. Alternative to Unsecured Cards: They provide a viable option when eligibility for a traditional credit card is limited. 

Features of Credit Card against Fixed Deposit

The features of credit card against fixed deposit are mentioned below: 

1. Affordable FD amount - The minimum fixed deposit amount usually ranges from Rs.10,000 to Rs.20,000 and is hence affordable.
2. Credit limit - Credit limit offered on secured credit cards typically depends on the fixed deposit amount. Generally, banks offer 75% to 85% of the deposit amount as total credit limit on the card.
3. Minimum documentation - To apply for secured credit cards, you do not need to submit a lot of documents.
4. Minimum tenure - The minimum tenure of the fixed deposit that you are giving as security to the bank should be six months.
5. Interest free period - Generally, banks offer an interest free period of 48 days to 55 days on secured credit cards.
6. Rewards - These cards offer multiple rewards such as reward points, cashback, etc., to the customers.
7. Interest on fixed deposit - Cardholders will continue earning interest on their fixed deposit.

How to Apply for a Credit Card Against Fixed Deposit?

1. For non-FD account holders: If you wish to apply for a secured credit card, you need to have a fixed deposit account with the respective bank.

1. Create an FD either by visiting the bank or by online procedure. 

1. Fill in a form to apply for the credit card against FD. 

1. Submit the required KYC (Know Your Customer) documents, such as address and identity proof. 

1. Review your application form and submit it to complete the application procedure and wait for approval. 

Note: reach out to the preferred bank by either visiting physically or via bank website, as some bank allows paperless application 

1. For FD account holders: If you already have a fixed deposit account with the bank from which you would like to avail the secured credit card, you can simply apply online by visiting the bank’s website.

Benefits of having a credit card against fixed deposit

Having a secured credit card provides the following benefits –

1. No income proof required: Have a credit card without any income proof. This is helpful for students, senior citizens, home makers, freelance workers, etc.
2. Helps to build credit history: Having a credit history has become a norm to avail any credit-related products. Having a secured credit card and using it properly would allow you to build a good credit history.
3. Access to other credit lines: Once you have credit history and the associated credit score, you do not find any problem in applying for other loan products including personal loan, home loan, auto loan, etc. Thus, secured cards introduce you to the world of credit.
4. Quick approval: Ensures instant approval of credit card application on booking an FD. 

Who is Suitable to Apply for Credit Cards Against Fixed Deposit?

The individual who can apply for credit cards against FD are listed below:

✔ Low or No Credit Score – People with low credit score or no credit history. 

✔ Below Minimum Income Requirement - No need to meet high salary criteria.

✔ One without a regular source of income – Freelancers, gig workers, or self-employed individuals.

✔ Blacklisted Locations/Employers - Bypass lender restrictions based on residency or workplace.

Key Things to Know Before Getting an FD-Backed Credit Card

1️⃣ Minimum FD Amount

1. Most banks require at least ₹2,000 as a fixed deposit to issue the card.

2️⃣ Lower Credit Limit

1. You’ll only get a percentage of your FD amount as credit - usually less than unsecured cards offer.

3️⃣ Locked Funds

1. Your FD stays blocked until you clear dues or close the card - reducing emergency cash access.

4️⃣ Default Risk

1. Missed payments? The bank can liquidate your FD, and you might lose accrued interest.

5️⃣ Hidden Charges

1. Watch for annual fees, late penalties, and GST - read the terms carefully!

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