SBI Credit Card Against Fixed Deposit

Ever tried applying for a credit card but didn't get it because you didn't meet the eligibility criteria? If you don't have a credit card yet, you've probably faced this situation (or, better said, frustration). Even if you're an active credit card holder now, think back to when you were trying to get one—possibly to build your credit score from scratch. 

The moment you see "Rejected" on the screen for your credit card application, you surely feel like screaming loud and saying to the bank, "Jab credit card hi ni doge to credit score/history kaha se banega".

But what if there was a way for you to get a credit card without worrying about proof of income or credit history? Well, one way to do it is with the SBI credit card on Fixed Deposit (FD). In return (other than the interest, obviously) for the savings that you've parked in an FD, SBI can give you a credit card with a limit linked to your FD. 

So, whether you're a student, a homemaker, or someone building (or maybe rebuilding) their credit score, an FD-based credit card from SBI can turn your savings into a method for cashless transactions without actually spending them. 

Let's understand how an SBI credit card against FD works and why it might be the smartest financial move you make today.

Table of Contents:

• Benefits of Opting For an FD-Based Credit Card
• What is the Minimum FD Amount Required For an SBI Credit Card?
• SBI Unnati Credit Card

Benefits of Opting For an FD-Based Credit Card

Suppose you bought a ticket for the next "Coldplay" concert (cross your fingers to make it happen soon), and instead, you got a VIP pass for it because you promised not to sell your ticket (chahe koi kitne bhi paise de). That's exactly how an FD-based credit card works. You'll get to enjoy multiple perks of a credit card just by parking your money in an FD.

Here are the benefits of choosing an SBI credit card against FD:

• Easy approval: Since the credit card is secured against your FD, you don't need to provide salary slips or proof of income. This makes it an ideal choice for students, homemakers, or anyone with irregular income. And one can get this credit card even if they don't have a credit history.
• A credit limit linked to FD: The limit of an SBI credit card against FD is usually 75-90% of your fixed deposit amount. This means the more you save in your FD, the higher your credit card's limit can be.
• Build or rebuild credit score: By responsibly using an FD credit card of SBI (i.e., paying bills on time), you can build or significantly improve your credit score. It's an excellent way to build a credit history from scratch or repair a damaged one.
• Risk-free for the bank: There will be minimal risk for the bank to issue you this card, as it's secured against your FD. If you fail to pay your credit card dues, SBI can simply recover the amount from your FD.
• Enjoy regular credit card perks: You can take advantage of all the perks of a regular credit card, such as reward points, cashback, discounts on shopping, etc., with your SBI FD card.
• No annual fees in some cases: Certain SBI FD-based credit cards, like the SBI Unnati Credit Card, come with zero annual fees (for the first 4 years), making them a cost-effective choice for beginners.
• Continuous interest earning: Your FD continues to earn interest while you keep on enjoying the benefits of an SBI credit card against the FD limit.

So, if you're looking for a smart and secure way to start building or improving your credit score, an FD-based credit card from SBI is worth considering. Now, let's understand how much money you need to lock in an FD to enjoy the benefits of an SBI credit card against an FD. 

What is the Minimum FD Amount Required For an SBI Credit Card?

One of the most common questions about the SBI credit card against fixed deposit is about the minimum FD requirement. To apply for an SBI credit card against FD, you need to open an FD of an amount ranging from ₹2,000 to ₹50,000. This FD will be held as security, meaning you can't withdraw it without clearing your credit card dues first.

As already mentioned above, the credit limit is usually set at 75-90% of your FD amount, which ensures that you have sufficient spending power without risking the principal deposit. For example, if you have an FD of ₹20,000, your credit card limit will be around ₹15,000 to ₹18,000.

So, you can easily get started with swiping your SBI credit card against FD, especially if you have funds sitting idle in the bank that you want to put to good use. Plus, your FD continues to earn interest, leading your savings to grow as you enjoy the benefits of an FD card by SBI. It's a win-win situation for you!

Let's check out a credit card offered by SBI against an FD amount that can be a viable option to end your credit card search.

If you want to know the Best Credit Cards Against FD, then click on the link to know the list.

SBI Card Unnati

When it comes to SBI credit card on FD basis, the SBI Card Unnati is one of the best options. It's designed specifically for individuals who may not have a credit history or regular income but have a fixed deposit with SBI. 

Benefits of SBI Card Unnati:

• Earn 1 reward point on spending every ₹100
• Get 1% fuel surcharge waiver across all petrol pumps in India on transactions between ₹500 and ₹3,000 (max. wavier ₹100 per statement)
• Earn ₹500 as cashback on annual spending of ₹50,000 or more

Fee of SBI Card Unnati:

• Joining Fee: ₹0
• Annual Fee: ₹499
• However, this card charges no fees for the first 4 years (i.e., an annual fee of ₹499 will be charged from 5th year onwards)

Minimum FD amount required for SBI Card Unnati: ₹25,000 or more

Overall, the SBI Card Unnati is an excellent option for beginners or those looking to rebuild their credit score. It's simple to apply, easy to get approved, and loaded with benefits. So, no need to worry anymore if you don't have a credit history. SBI credit card against FD is there for your rescue. 

Conclusion

An SBI credit card on fixed deposit is a smart financial instrument, especially for those looking to build a credit score from zero or improve their existing credit history. With features like easy approval, a secured credit limit, and continuing to earn interest on your FD, it's truly a win-win situation for the credit card holder. 

Don't stress out if you're a student, a homemaker, or someone with a fluctuating income; an FD-based credit card by SBI offers the perfect balance of security and convenience. 

So what're you waiting for? It's enough to see the "credit card application rejected" message repeatedly for applying to one card after another. This can be your "click fast to apply" credit card option even if you've no credit history. Apply for an SBI credit card against FD online and start enjoying a whole lot of benefits.

Turn your fixed deposit into a financial tool for cashless transactions with an SBI credit card against FD today!

Moreover, once you've applied for an SBI credit card against FD, you can easily track the application status at Finology Select. Just follow the steps mentioned there and get real-time updates on your credit card application. 

FAQs

Can I withdraw my FD before closing the credit card?

No! The SBI credit card against FD minimum is secured by lien-marking your fixed deposit, which means you cannot withdraw or break the FD until the credit card is closed (after clearing all the remaining payments). However, you can continue to earn interest on your FD during this period. 

How long does it take to get an SBI credit card against FD?

The process of getting an SBI credit card against FD online is simple and easy. Once you apply and submit the necessary documents, it typically takes 7-10 working days for the card to be approved and delivered to your doorstep. Since the credit card is backed by your FD (minimal risk for the bank), approval is faster compared to other credit cards.

Will using an FD-backed credit card improve my credit score?

Yes, definitely! Using an FD-based SBI credit card responsibly, i.e., by paying bills on time, can significantly improve your credit score. It's an ideal choice for first-time credit card users or those who want to rebuild their credit history. Just remember to maintain a low credit utilisation ratio so that the positive impact on your credit score will be maximum.

Can I upgrade my FD-based SBI credit card to an unsecured card?

Yes, you can! If you maintain a good credit history (on-time payments), SBI may offer you an upgrade to an unsecured (a more premium) credit card. This means you can enjoy higher credit limits and better perks without the need to block your FD. You can check your eligibility for a card upgrade through SBI's online portal or by contacting customer service.

What happens if I fail to pay my credit card dues?

In case of non-payment, SBI will recover the outstanding dues from your fixed deposit amount. This is what it means by saying that the bank has minimum risk in issuing a credit card against FD. And that's why approval for an FD-based credit card SBI is relatively easier. Moreover, defaulting on payments (not paying or even late paying) will negatively impact your credit score. So, always try to pay the full amount on or before the due date.