Best Credit Card Against FD in India

A credit card against FD has become one of the most reliable ways for beginners, students, new-to-credit individuals, and even self-employed users to access credit without facing rejection. Since banks use your fixed deposit as security, these cards come with easy approval, lower risk, and high acceptance, even when your credit score is low or zero.

With rising interest in fd-based credit cards, Indian banks have enhanced limits, rewards, and digital onboarding — making these cards a smart entry point into the credit ecosystem. This guide explains everything you must know: how these cards work, eligibility, best options, minimum deposit, who should apply, and how to choose the best credit card against FD based on your needs.

Table of Contents:

1. What Is a Credit Card Against FD?
2. How Does an FD-Based Credit Card Work?
3. Best Credit Cards Against FD in India
4. Features and Benefits of a Credit Card Against FD
5. Eligibility Criteria to Apply for a Credit Card Against FD
6. Minimum FD Amount Required for a Credit Card Against FD
7. Who Should Apply for an FD-Based Credit Card?
8. How to Apply for a Credit Card Against FD 

What Is a Credit Card Against FD?

A credit card against FD is a secured credit card issued by a bank using your fixed deposit as security. Instead of checking your income or credit score, the bank simply blocks a portion (usually 75–90%) of your FD value as your credit limit.

For example, if you open a ₹20,000 fixed deposit, banks may offer a credit limit of ₹15,000–₹18,000, depending on their policy.

This structure reduces risk for the bank and gives you access to a fully functional credit card even if you have no credit history or a low CIBIL score.

The card works exactly like a normal credit card:

• You get an interest-free period (typically 45–55 days)
• You earn rewards depending on the card type
• You must repay your bill on time to avoid interest (usually 36–42% APR)

How Does an FD-Based Credit Card Work?

An FD-based credit card works like any other credit card in terms of usage, interest cycle, billing, and repayment. The key difference is that the fixed deposit acts as collateral. The process typically involves the following steps:

1. Create a fixed deposit with the issuing bank or use an existing one.
2. The bank places a lien on the FD amount until the card remains active.
3. A credit limit of 75–90% of the FD value is assigned.
4. You use the card for shopping, online payments, utilities, or EMIs
5. The FD continues to earn interest at the standard rate.
6. If you delay payments, the bank may adjust outstanding dues from the FD.

This type of card does not require salary proofs, income tax returns, or a strong credit history. This makes it suitable for users entering the credit ecosystem or rebuilding their credit score.

Best Credit Cards Against FD in India

Below are the 5 Best Credit Cards Against FD in India with detailed benefits & fee structure.

1. IDFC FIRST WOW Credit Card

IDFC FIRST Wow Credit Card is one of the most rewarding FD-based credit cards with zero joining fee, zero annual fee and no interest on cash withdrawal for 48 days. Designed for first-time credit builders, the card stands out with lifetime-free status and flexible redemption options.

Key Features & Benefits

• Lifetime free card with ₹0 joining and annual fee
• Interest-free cash withdrawal for up to 45- 48 days
• 4X reward points on spends
• No fees on reward redemption
• Fuel surcharge waiver 1% (at select networks)

Fee Structure

Fee Type	Amount
Joining Fee	₹0
Annual Fee	₹0
APR (Interest Rate)	8.5%–46.2% p.a. (usage dependent)

2. SBI Unnati Credit Card

SBI Unnati Credit Card is an entry-level secured credit card issued against an SBI FD of ₹25,000 or above. It is designed for new credit users looking for a stable and predictable card with rewards on everyday spending.

Features & Benefits

• Free for first 4 years
• 1% cashback on annual spends above ₹50,000
• Fuel surcharge waiver (1%)
• Accepted worldwide with Visa/Mastercard network

Fee Structure

Fee Type	Amount
Joining Fee	₹0
Annual Fee	₹499 (from 5th year onwards)
APR	~42% p.a.

3. Axis Bank Insta Easy Credit Card

The Axis Bank Insta Easy Credit Card is a popular FD-backed credit card issued instantly against an FD of ₹20,000 or more. The card is suitable for quick issuance and offers straightforward benefits related to fuel, cash withdrawals, and purchase protection.

Features & Benefits

• Credit limit up to 80%–90% of FD
• Fuel surcharge waiver 1%
• EMI conversion option available
• Add-on cards allowed

Fee Structure

Fee Type	Amount
Joining Fee	₹0
Annual Fee	₹0
APR	49.36% p.a.

4. ICICI Instant Platinum Credit Card

ICICI Instant Platinum Credit Card is among the oldest and most reliable FD-based credit card products in the country. It is issued against a minimum FD of ₹50,000 and works well for individuals building or repairing their credit scores.

Features & Benefits

• 2 reward points  per ₹100 retail spend
• 2.5% fuel surcharge waiver at HPCL
• Accepted internationally
• Easy upgrade path to an unsecured ICICI card later

Fee Structure

Fee Type	Amount
Joining Fee	₹0
Annual Fee	₹0
APR	29.88% p.a.

5. Kotak 811 #DreamDifferent Credit Card

The Kotak 811 #DreamDifferent Credit Card is another top secured credit card known for its high FD-to-limit ratio. The minimum FD required is ₹10,000 and the card offers useful milestone benefits, making it attractive for moderate spenders.

Features & Benefits

• Lifetime free 
• 4 reward points per ₹100 spent online
• Fuel surcharge waiver ₹3,500/year
• Add-on cards & bill pay supported

Fee Structure

Fee Type	Amount
Joining Fee	₹0
Annual Fee	₹0
APR	45% p.a.

Features and Benefits of a Credit Card Against FD

A credit card against fixed deposit offers several advantages that make it suitable for users across income brackets and credit profiles. Below are the key benefits backed by specific measurable aspects:

1. Higher Approval Rates
Since the card is collateralised, banks consider the FD a low-risk asset, making approvals relatively easier, especially for internal customers with existing FDs.

2. Predictable and Flexible Credit Limits
The credit limit is typically 75–90% of the FD value. For example, a ₹1 lakh FD may provide a limit of ₹80,000 to ₹90,000. This allows users to align spending according to their risk appetite.

3. Continuing Interest Earnings
The FD continues generating interest even while being used as collateral. For instance, a ₹50,000 FD at 7% yields ₹3,500 annually, giving users a passive return while enabling access to credit.

4. Credit Score Building
Timely repayment of a secured credit card has a direct positive impact on a user’s CIBIL score. Within 6–12 months, disciplined usage can improve credit history significantly.

5. Full Credit Card Utility
The card offers complete transactional flexibility, including:

• EMI conversions
• Online/offline payments
• Fuel surcharge waivers
• Rewards on retail spending
• Contactless transactions
• International usage (for select cards)

6. Lower Documentation Requirements
Most banks only require:

• PAN
• Aadhaar
• FD confirmation

This reduces turnaround time, enabling cards to be issued within 1–3 working days, or instantly for select banks.

Eligibility Criteria to Apply for a Credit Card Against FD

Eligibility criteria to apply for a credit card against fd are generally simpler than for regular credit cards. Banks usually require:

• Minimum age of 18–21 years, depending on bank policy
• A valid fixed deposit with the issuing bank
• FD should be non-tax-saving and marked as lien
• FD tenure of at least 6–12 months
• KYC compliance (PAN, Aadhaar, address proof)

Unlike regular cards, salary slips or high CIBIL scores are typically not required for this secured credit card.

Minimum FD Amount Required for a Credit Card Against FD

The minimum FD required varies across banks, but generally falls within the range of:

Bank	Minimum FD Required
IDFC FIRST WOW Credit Card	₹20,000
ICICI Instant Platinum Credit Card	₹50,000
Kotak 811 #DreamDifferent Credit Card	₹5,000
Axis Bank Insta Easy Credit Card	₹20,000
SBI Card Unnati	₹25,000

In most cases, creating a higher FD increases the credit limit proportionally. For example:

• A ₹50,000 FD may give you a ₹40,000 credit limit.
• A ₹1,00,000 FD might offer up to ₹85,000 limit depending on the policy.

This makes these cards ideal for controlled spending while building credit responsibly.

Who Should Apply for an FD-Based Credit Card?

An FD-based credit card is suited to individuals across several categories:

Category	Who Should Apply / Benefits
New-to-Credit Users	Young professionals, students, and first-time earners with no prior credit history can establish initial credit behaviour using a secured FD-based credit card.
Individuals with Low or Damaged Credit Scores	Users aiming to improve credit scores after defaults or settlements can gradually rebuild credit history via an FD-backed credit card.
Freelancers or Irregular Earners	Individuals whose income does not meet strict salary-based eligibility can still access credit by using an FD as collateral.
Individuals Who Prefer Collateralised Credit	Those preferring secured borrowing for financial discipline or lower operational risk can opt for an FD-based card.
Users Who Want Faster Card Issuance	FD-based credit cards often provide approval within minutes to 24 hours, ideal for time-sensitive credit needs.

How to Apply for a Credit Card Against FD

To apply for a credit card against FD, follow these simple steps:

Step 1: Open a Fixed Deposit
Choose a bank that offers FD-based credit cards and open an FD of the required minimum amount. Ensure:

• FD tenure is at least 6 months
• No premature withdrawal is planned
• The FD is in your name

Step 2: Submit the Application
You can apply:

• Through net banking
• Via a mobile app
• By visiting the bank branch

Some banks allow instant digital applications without paperwork.

Step 3: Complete KYC
You may need to upload PAN and Aadhaar if not already verified.

Step 4: Lien Marking
The bank will place a lien on your FD, meaning the amount is secured against overdue credit card payments.

Step 5: Card Activation
Once approved, the bank will:

• Set your credit limit
• Dispatch the physical card
• Provide digital access for immediate use

Approval typically takes 5–10 minutes for digital applications and 24–48 hours for branch-based requests.

Conclusion

A credit card against FD is one of the most effective ways to build credit securely. Whether you're a beginner, a student, a low-score borrower, or someone who prefers a safe credit option, an FD-based credit card gives you flexibility without income-based hurdles. You continue earning interest on the FD while enjoying all the features of a regular credit card.

Given the minimal documentation, zero rejection risk, and strong credit-building potential, these cards are among the best secured credit card options in India today. Always compare the FD amount, reward structure, and annual charges before applying.

FAQs About Credit Cards Against FD

1. Is a credit card against FD good for beginners?
Yes, a credit card against FD is ideal for beginners because it offers guaranteed approval, low fees, and a manageable limit. It also helps you build a credit score within 6-12 months if you pay bills on time.

2. What is the minimum FD required for an FD-based credit card?
The minimum FD varies but usually ranges between ₹10,000 and ₹25,000, depending on the card. Some advanced cards may require higher deposits.

3. Can I increase my credit limit on an FD-backed credit card?
Yes. To increase the credit limit, simply increase your FD amount. Banks normally offer up to 75%–90% of your FD as the credit limit.

4. What happens if I miss payments on a secured credit card?
If you fail to make payments, the bank may adjust dues by partially or fully liquidating the FD. Missing payments may also negatively affect your credit score, as with any other card.

5.  Can I break my FD after getting a credit card?
Not immediately. Banks lock the FD for the card’s tenure. If you close it, your card is cancelled, and dues (if any) are adjusted.

6. Which is the best credit card against fixed deposit in India?
The best credit card against FD depends on requirements, but popular options include the IDFC FIRST WoW Card, Axis Insta Easy, ICICI Instant Platinum, SBI Unnati, and Kotak 811 #DreamDifferent.