If you’ve tried to apply for a credit card in the past, but were denied due to insufficient income or a low credit score, there is an effective solution you may not know of that can help — FD credit cards. FD-backed credit cards are also called secured credit cards, because they are issued in connection with a Fixed Deposit (FD) account. An FD credit card allows you to have a credit card to help you benefit from the use of a credit card and to build or improve your credit history at the same time.
Key Features of FD Credit Card
- No income proof necessary
- Available with a low or no credit score
- The limit of the credit card is dependent on the value of your FD
- Earn interest on your FD as normal
- Same features as a credit card: rewards, EMI options for purchases, fuel benefits etc.
- Your FD is intact unless you have defaulted on card payments
Who Can Apply for an FD Credit Card?
- Credit card newbies: They are great for fresh students, homemakers or recent graduates that have no credit history.
- Low credit rating individuals: This is a great way for you to manage your spending on a card responsibly over time which can improve your credit score.
- Self-employed professionals: Do not have to provide proof of salary income to apply for this card.
- People that have had their applications rejected for unsecured credit cards: These cards offer another means of obtaining full access to the value of a credit facility.
How to get an FD Credit Card
- Open a Fixed Deposit account in a participating bank (example: SBI, ICICI Bank, Axis Bank, HDFC Bank)
- Apply for credit card linked to the FD
- Get approved quickly – Usually with very little documentation
- Start using the card as if it is just a regular credit card
Popular FD Credit Cards in India
- SBI Unnati Credit Card
- Minimum FD: ₹25,000
- Annual Fee: Free for 4 Years
- Rewards on all spend
- ICICI Bank Coral Credit Card (against FD)
- Minimum FD: ₹20,000
- Dining & entertainment benefits
- Earn reward points on every transaction
- Axis Bank Insta Easy Credit Card
- Minimum FD: ₹20,000
- Zero documentation
- Online approval in minutes
Also read: Want to Save Big While Studying Abroad? Get One of These Forex Cards!
Top FD Credit Cards in India
| Card name | Issuing bank | Minimum FD amount | Credit Limit | Annual Fee | Key Benefits |
| SBI Unnati credit card | State Bank of India | ₹25,000 | Up to 90% of the FD | Free for 4 years | Reward points on spends-accepted globally-fuel surcharge waiver |
| ICICI Bank Coral credit card (Against FD) | ICICI Bank | ₹20,000 | 85%-90% of FD | ₹500 (waived on spending ₹1.5 lakh/year) | Earn 2 payback points on every ₹100 spent- movie/ dining discounts-lounge access |
| Axis Bank Insta Easy Credit Card | Axis Bank | ₹20,000 | Up to 80% of FD | ₹500 (lifetime free offers available) | Cashback and rewards-fuel surcharge waiver-online instant approval |
| HDFC Bank Secured Credit Card (e.g., HDFC Money Back) | HDFC Bank | ₹10,000-₹25,000 | Up to 85% of FD | ₹500-₹1000 (depending on variant) | Cashback on reward points-smart EMI options-auto credit limit increases possible |
| BOB Financial Prime Credit Card | Bank of Baroda | ₹15,000 | Up to 90% of FD | Free for Life | 4 reward points per 100%-complimentary insurance-global acceptance |
Suggestions for Selecting FD Credit Cards
- For the highest rewards: HDFC Moneyback or ICICI Coral
- For no fee: SBI Unnati or BOB Prime
- For low FD requirement: HDFC and Axis Bank have low bar
- For lounge access and lifestyle perks: ICICI Coral has bonuses
Important Takeaways
- Delinquent payments can trigger FD liquidation.
- Your credit limit will be lower than what you may have received with an unsecured card.
- Your card will usually only be valid for the length that your FD is active.
- Preclosure of the FD would likely lead to cancellation of your card.
In Summary
FD-credit cards are a low-risk and high-reward option for getting started with the credit system, or rebuilding your credit score. They are easy to obtain, safe to use, and you get to take advantage of the full benefits of a credit card without the traditional standards of qualifying. If you’re looking to start your credit journey, or to bounce back from a low credit score, an FD-credit might just be a smart step forward!
Written by Pranjal Data
