FD-Backed Credit Cards: How to Get One

If you are not able to avail a Credit Card due to no credit history or any other reason, you can still be eligible for it, provided you have a Fixed Deposit account. Banks nowadays offer a Credit Card Against Fixed Deposit wherein you get a Secured Credit Card against your FD. Here your Fixed Deposit account is considered as collateral/security by the bank. Let’s get to know Credit Cards Against FD in detail.

There are two types of Credit Cards- Unsecured and Secured. Both these Credit Cards allow you to make purchases on credit instantly. However, while one is given to you based on your credit score, income & other parameters, the other takes your deposit in a bank account as collateral.

If you don’t have a credit score as you’ve never taken a loan, it could be challenging to get a Credit Card. This is where a Fixed Deposit Credit Card gets into the picture.

It allows you to apply for a Credit Card against your Fixed Deposit account, eliminating the need for a credit score. With such Credit Cards, the FD works as collateral, and the card limit is a certain percentage of the amount deposited in the FD account.

Note: Issuance of AU Credit Card on FD is at the sole discretion of AU Small Finance Bank. Not all AU FDs are eligible for AU Credit Cards. To apply/know more, please visit nearest branch.

Some of the top advantages of an FD-based Credit Card are-

• Get a Credit Card with Zero Credit History

  An FD-backed Credit Card allows you to get a Credit Card even if you don’t have a credit history.

• Continue Generating FD Interest

  Taking a Credit Card Against Fixed Deposit does not impact your FD. The invested FD amount will continue to generate returns at the applicable interest rate.

• Minimal Documentation

  FD-backed Credit Cards generally have minimal documentation requirements. Moreover, the application processing is faster and hassle-free because of your existing FD Account with the bank.

• Start Enjoying Rewards and Privileges

  Depending on the Credit Card you choose, you can enjoy extensive rewards, including discounts, cashbacks, and more.

Read More: AU Credit Cards – Features, Benefits and Offers

No, you cannot close the FD midway. However, you may opt for partial withdrawal. The amount of money you can withdraw would depend on your credit limit on the card and your deposit amount. 

If you’re a resident Indian above 18 years, you can apply for a Fixed Deposit to make yourself eligible for an FD-backed Credit Card.

• With a Credit Card against FD, you can get a feature-packed Credit Card even if you don’t have any credit history
• Since a Credit Card Against Fixed Deposit has a low credit limit, you need to use it responsibly to improve your credit score

AU Small Finance Bank offers a high interest rate on a Regular Fixed Deposit along with flexible tenures, payout options & several other benefits. You can open a Regular Fixed Deposit via AU Video Banking by clicking here. Existing customers can open an FD account via AU mobile App/NetBanking.