To obtain a credit card against a fixed deposit (FD), the primary requirement is to have an FD in the same bank. The credit card limit is determined based on the deposited amount in the FD. This scheme is currently offered by banks like State Bank of India, ICICI Bank, PNB, Kotak Mahindra Bank, Axis Bank, among others.
Benefits of FD Credit Cards
- One of the significant advantages of this credit card is the streamlined application process. As the bank already possesses your details, minimal additional documentation is required. Additionally, individuals with a tarnished credit history find this an excellent opportunity to rebuild their credit score. The interest rates on FD Credit Cards are also comparatively lower.
- Apart from the hassle-free documentation, another notable benefit is the security the FD provides to the bank. FD ensures that the bank has a certain level of security.
- Different banks have distinct rules for availing FD Credit Cards. For instance, ICICI Bank requires an auto-renewal mode for the FD and a tenure of at least six months. The minimum FD amount should be Rs.10,000.
FD Credit Cards Application Process
Applying for an FD Credit Card is very easy process. If you have an FD in the same bank, you can apply FD Credit Cards by visiting bank’s nearest branch, and providing the necessary documents.
FD Credit Cards Limit
The credit limit on an FD Credit Card is directly proportional to the amount in the FD.
FAQ
How is the credit limit determined on an FD Credit Card?
The credit limit is directly tied to the amount deposited in the fixed deposit. The higher the FD amount, the higher the credit limit.
Can I use an existing FD for an FD Credit Card?
Yes, an existing FD in the same bank is a prerequisite for obtaining an FD Credit Card.
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