Synopsis: FD-backed credit cards offer FD interest along with cashback, rewards, and credit-building benefits. This article compares top FD-backed credit cards with traditional fixed deposits
Fixed deposits are popular for their guaranteed returns, but they only provide interest income. FD-backed credit cards allow users to earn interest on their deposits while enjoying additional benefits such as cashback, rewards, and access to credit. The credit limit on these cards is linked to the FD amount, meaning a higher FD value generally provides a higher credit limit.
Top 4 FD-Backed Credit Cards
1. SBM ZET Credit Card
- Joining & Annual Fee: Lifetime free.
- FD Requirement: Starts from ₹2,000.
- Credit Limit: Up to 90% of the FD amount.
- FD Interest: Earn up to 7% p.a. on the fixed deposit.
- Approval: 100% guaranteed approval.
- Income Proof: Not required.
- Interest-free Period: Up to 45 days.
- UPI Support: RuPay credit card with UPI payments.
- Rewards & Benefits:
- Flat 2% cashback on ZET UPI payments with an active ZET Plus subscription.
- Flat 5% cashback on Amazon Pay and Flipkart vouchers (ZET Plus).
- Up to 20% discounts on partner brands such as Swiggy and Instamart.
- Up to 15% cashback across 80+ partner brands.
To apply for the card, please visit the Official Website
2. SBM Novio RuPay FD Credit Card
- Joining & Annual Fee: Lifetime free.
- FD Requirement: Starts from ₹2,000.
- FD Range: ₹2,000 to ₹5 lakh.
- Credit Limit: Up to 90% of the FD amount.
- FD Interest: Earn up to 7% per annum.
- Interest-free Period: Up to 45 days.
- Card Type: RuPay FD-backed secured credit card.
- Virtual Card: Instant virtual card for FDs starting at ₹2,000.
- Physical Card: Issued for FDs of ₹10,000 or above.
- FD Top-up: Increase your FD and credit limit anytime.
- Rewards & Benefits:
- Earn 5% Novio Coins on UPI transactions.
- Earn 5% Novio Coins on offline (POS/store) spends.
- Earn 10% Novio Coins on fuel purchases.
- Redeem Novio Coins for discounts of up to 20% across partner brands.
- Welcome Benefits:
- Welcome benefits worth up to ₹5,000 from partner brands.
- Unlock the benefits by spending ₹2,500 within the first 30 days of card issuance (terms apply).
- Shopping Offers:
- BookMyShow: Buy 1 Get 1 Free (up to ₹250) on movie tickets.
- Amazon: Up to 5% instant discount on eligible purchases.
- Zepto: 10% cashback on eligible orders.
- Swiggy: 20% discount on eligible food orders.
- Fuel: Joining benefit of ₹100/month for 6 months (terms apply).
- Potential annual savings of up to ₹23,000 through cashback and partner offers.
To apply for the card, please visit the Official Website
Also Read: 5 Best IDFC FIRST Credit Cards That Offer Airport & Railway Lounge Access with Minimum Monthly Spend
3. AU Small Finance Bank – NOMO Credit Card
- Joining Fee: ₹199 + applicable taxes.
- Annual Fee: Nil.
- FD Requirement: Starts from ₹20,000.
- Credit Limit: Up to 100% of the FD amount (subject to bank approval).
- Card Type: FD-backed secured credit card.
- Forex Markup: 0.99% on international transactions.
- Contactless Payments: Tap & Pay for transactions up to ₹5,000.
- EMI Facility: Convert purchases of ₹2,000 or above into EMIs.
- Rewards & Benefits:
- Welcome Benefit: Earn 500 Reward Points on your first transaction within 30 days of card setup.
- Retail Spends: Earn 2 Reward Points per ₹100.
- Utility & Insurance Spends: Earn 1 Reward Point per ₹100.
- Redeem reward points for travel, e-vouchers, mobile recharges, and more through AU Rewardz.
- Milestone Benefits:
- Earn 500 Reward Points on quarterly retail spends of ₹25,000.
- Earn an additional 500 Reward Points on quarterly retail spends of ₹50,000.
- Travel & Lifestyle Benefits:
- 2 complimentary domestic airport lounge visits per quarter on spending ₹50,000 in the previous quarter.
- 2 complimentary railway lounge visits per quarter for the primary and add-on cardholders.
- 1% fuel surcharge waiver (up to ₹100) on fuel transactions between ₹400 and ₹5,000
To apply for the card, please visit the Official Website
4. IDFC FIRST WOW Credit Card
- Joining & Annual Fee: Lifetime free.
- FD Requirement: Minimum ₹20,000.
- Credit Limit: Up to 100% of the FD amount.
- Card Type: Visa Infinite FD-backed secured credit card.
- FD Interest: Earn up to 6.30% p.a. on the fixed deposit.
- Forex Markup: 0% on international transactions.
- Cash Withdrawal: 0% interest for up to 45 days on ATM cash withdrawals (domestic & international).
- No Income Proof or Credit History Required.
- Rewards & Benefits:
- Welcome Offer: Up to ₹200 cashback (₹50 each on the first four UPI transactions) through the linked FIRST Digital RuPay Credit Card.
- Earn 4 Reward Points per ₹200 on online, offline, and international spends.
- Earn 1 Reward Point per ₹200 on insurance, utility bill payments, FASTag recharges, and railway bookings.
- UPI Rewards: Earn up to 3 Reward Points per ₹200 on eligible UPI transactions using the linked FIRST DIGITAL card.
- Travel Bonus: Earn 10% bonus Reward Points on hotel bookings and 5% bonus Reward Points on flight bookings made through the IDFC FIRST Bank Mobile App.
- Reward Value: 1 Reward Point = ₹0.25.
- Reward Points are valid for 24 months and can be redeemed for travel bookings, vouchers, shopping, and more
To apply for the card, please visit the Official Website
FD-Backed Credit Card vs Fixed Deposit
Who Should Choose an FD-Backed Credit Card?
FD-backed credit cards are ideal for beginners, students, young professionals, freelancers, and individuals without income proof who want to build credit history while earning FD interest. However, those seeking only guaranteed returns may prefer traditional fixed deposits.
Can FD-Backed Credit Cards Beat Fixed Deposit Returns?
An FD-backed credit card does not increase the FD interest rate but adds extra benefits through cashback, rewards, and offers. For example, a ₹50,000 FD earning 7% annually can generate ₹3,500 interest per year. The credit limit depends on the FD amount; a ₹50,000 FD with a 90% limit ratio can provide a credit limit of up to ₹45,000, while a ₹2,000 FD may provide a limit of around ₹1,800. However, additional benefits from the card depend on spending habits, eligible transactions, available offers, and timely bill payments.
FD-backed credit cards cannot replace fixed deposits as an investment option, but they can help users earn FD interest while enjoying credit card benefits and building a strong credit history.
