5 Best Credit Card Against Fixed Deposit

 Credit Card Against Fixed Deposit are also known as a secured credit card. These cards are given to the customer against Fixed Deposit. Here the Fixed deposit act as collateral. In normal credit cards, a credit limit is decided based on your salary, credit history, and other important factors. In credit card against fixed deposit, a credit limit is decided based on fixed deposit amount placed at bank.

 Credit card against fixed deposit is a very good option for the people with bad, no credit history or low income. Credit Card against FD is backed by a fixed deposit. If you default in clearing credit card dues bank will use fixed deposit amount to clear your dues. Credit limit granted on this type of card is up to 85% of FD value.

Secured cards offer the same benefits as any other credit card. But the biggest advantage they offer is lower interest rates in comparison with regular unsecured credit cards.

Who should opt for Credit Card Against Fixed Deposit?

Credit Card against fixed deposit is suitable for the following types of people.

  • Individuals with entry-level jobs
  • Individuals with a poor credit score
  • People with low income or no regular income
  • Individual who are not getting unsecured cards
  • An individual without any income proof or housewife

credit card against fixed deposit

5 Best Credit Card Against Fixed Deposit

  1. SBI Advantage Plus Card

SBI Advantage Plus Credit card is one of the best credit cards against fixed deposit. This card can be availed on existing as well as new fixed deposit. This card multiple benefits including flexi pay facility. Key Features and benefit details of this card are given below.

Key Features and Benefits

  • This card provides FlexiPay facility where you can convert your transaction to monthly EMI.
  • You can enjoy credit limit up to 85% of the FD amount.
  • This card allows cash withdrawal facility up to 100% of withdrawal limit.
  • You can avail Easy Bill Pay facility for paying utility bills.
  • It also offers Easy money facility. Get draft or cheque against your credit limit.

Fees and Charges

Annual Fee – Rs.500 + GST

Renewal Fee – Rs.500 + GST

Finance charges – Up to 2.25% per month or 27% per annum, from the transaction date

Late payment – Up to Rs.750

  1. SBI Card Unnati

SBI Card Unnati is next in the list of best credit card against fixed deposit. Minimum fixed deposit amount required to get Unnati Card is Rs.25000. This card is free for first four years. This card offers multiple benefits to the customer. Key Features associated with SBI Card Unnati are given below.

Key Features and Benefits

  • Get 1 reward point on every Rs.100 spent.
  • Milestone based reward. Rs.500 cashback if spends is more than Rs.50000 per year.
  • 1% fuel surcharge waiver for transaction up to Rs.3000.
  • Contactless card for enhanced security.
  • Cash on Go and Flexipay facility available.

Fees and Charges

Annual Fee – NIL up to first four years

Renewal Fee – Rs.499 + GST fifth year onwards

Finance charges – Up to 2.5% per month or 30% per annum, from the transaction date

Late payment – Up to Rs.950

  1. ICICI Bank Coral Credit Card

ICICI Bank Coral Credit Card is offered against fixed deposit. No income proof document required to avail this card. Key features associated with ICICI Bank Coral Credit Card are given below.

Key Features and Benefits

  • 2 Payback point on every Rs.100 spent on all purchase except fuel, utility and insurance
  • Double the rewards on dining, groceries and at supermarkets
  • Buy one and get one free movie ticket through the week at bookmyshow
  • Minimum 15% saving on dining at over 800 restaurants
  • Complimentary access at airport lounge access

Fees and Charges

Annual Fee – Rs.500 + GST

Renewal Fee – Rs.500 +GST

Finance charges – 3.4% on revolving credit.

  1. Axis Bank Insta Easy Credit Card

Axis Bank Insta Easy Credit Card is next in the list of best credit card against fixed deposit. The minimum fixed deposit amount required to get this card is Rs.20000.

Key Features and Benefits

  • Cash withdrawal up to 100%
  • Credit limit up to 80% of FD principal value
  • Flexible credit limit facility as per requirement
  • 1% fuel surcharge waiver on all fuel transactions
  • 50 Credit free days

Fees and Charges

Annual Fee – NIL

Renewal Fee – NIL

Finance charges – 2.50% per month or 34.49% per annum

Late payment – Up to Rs.700

  1. Kotak Mahindra Bank Aqua Gold Credit Card

Kotak Mahindra Bank Aqua Gold Credit Card is issued against fixed deposit of minimum amount Rs.25000. Only individual name term deposit is required for applying credit card. Key features and benefit associated with this card are given below.

Key Features and Benefits

  • The credit limit up to 80% of the term deposit amount
  • Fuel surcharge waiver up the transaction of Rs.3500
  • Insurance coverage up to Rs.50000 against fraudulent usage
  • Multiple redemption options
  • 48 Interest-free credit days

Fees and Charges

Annual Fee – NIL

Renewal Fee – NIL

Finance charges – 2.99% per month or 35.88% per annum

Advantages:

  • No Income documents required to avail these types of cards.
  • You can improve your credit history by using this card.
  • You can get an add-on card using this card.
  • Lower Interest rate compared to other credit cards.
  • Anyone with a fixed deposit can get this card.

 Disadvantages:

  • Using a credit card against a fixed deposit is like making use of your own money.
  • The bank can make use of FD amount in case outstanding dues are not paid.
  • Your credit score will be affected in case payments are not clear in time.

Article by Raviraj

Raviraj is the man behind moneyalpha.com. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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