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What is Credit Card against Fixed Deposit?

What is Credit Card against Fixed Deposit?

03 January, 2024


Synopsis

  • An FD-backed Credit Card is a secured card issued against a Fixed Deposit.

  • The FD acts as collateral while continuing to earn interest, and the credit limit is typically 90-100% of the deposit amount.

  • The minimum FD amount to get a secure Credit Card is ₹15,000.


Having a Fixed Deposit (FD) Credit Card can be incredibly useful, providing financial flexibility in times of need. It helps manage expenses, build a credit history, and improve future borrowing capacity. However, getting a traditional Credit Card may not be easy for those with low credit scores or no prior credit history. To bridge this gap, HDFC Bank offers a Credit Card against Fixed Deposit, allowing you to secure a Credit Card by pledging your FD as collateral.

What is Credit Card Against Fixed Deposit?

A Credit Card against Fixed Deposit is a secured Credit Card issued by banks against an FD. The FD acts as a security deposit for the Credit Card, reducing the Bank’s risk. This makes it an ideal solution for those who may not qualify for conventional Credit Cards due to low income or an unestablished credit history. While the FD remains untouched and continues to earn FD interest, the Credit Card allows you to make purchases and transactions, just like a regular Credit Card.

What is FD Credit Card?

What is Fixed Deposit in Credit Card? A Fixed Deposit in Credit Card refers to the FD pledged as collateral for issuing an FD Credit Card. An FD-backed Credit Card offers a secure way to access credit. The FD remains intact, earning interest while ensuring you have access to a credit line.

How Does an FD-Based Credit Card Work?

An FD-based Credit Card functions just like a traditional Credit Card but with a few differences:

  • The Credit Card gets issued against a Fixed Deposit held with HDFC Bank.

  • The credit limit is typically 90% of the FD amount.

  • The FD remains active and continues to earn interest while serving as collateral.

  • If dues are not paid on time, the Bank may use the FD amount to recover outstanding payments.

Eligibility Criteria for a Credit Card Against FD


​​​​​​​To qualify for a Credit Card against FD, you must meet the following requirements:

  • Citizenship: Must be an Indian resident or an NRI with a valid Indian address.

  • Age Requirement: Applicant must be between 18 and 65 years old.

  • Fixed Deposit Account: You should have an active FD account or be willing to open one with the issuing Bank. The minimum deposit amount should be ₹15,000.

Note: A Credit Card will not be issued if the FD amount is less than ₹15,000, the FD tenure is under 1 year, or the PAN is not updated/inoperative.

Things to Know Before Applying for a Credit Card Against Fixed Deposit (FD)


Before you apply for a Credit Card against a Fixed Deposit, understand the following restrictions:

  • Floater Cards: Floater Cards are not supported by this facility.

  • Non-Eligible FDs: Tax Saver FDs, NRI FDs, Minor Accounts, sweep-in FDs, non-withdrawable FDs, and existing lien-marked FDs do not qualify.

  • Joint FDs: Only individual FDs are eligible; joint FDs are not accepted.

  • ETB (Existing to Bank) Customers: Only customers with an active CASA (Current Account Savings Account) relationship with HDFC Bank are eligible.

  • Process for ETB CASA Holders Without an FD: If you have a CASA Account but no FD, you can open one. Once the FD is booked and active, you must reinitiate the Credit Card application.

  • Standalone FD Customers: Currently not eligible due to certain restrictions. This may change in the future.

How to Apply for an FD-Based Credit Card?


To apply for an FD-based Credit Card, follow these steps:

  1. Open a Fixed Deposit: If you don’t already have an FD, open one with HDFC Bank.

  2. Fill Out the Application: Submit a Credit Card against Fixed Deposit application form along with FD details.

  3. Submit Required Documents: Provide identity proof, address proof, and the FD certificate for verification.

  4. Approval and Issuance: Once verified, we will approve the application and issue the Credit Card.

Credit Limit on FD for Credit Card


For regular Credit Cards, banks determine the credit limit based on income and creditworthiness. However, in the case of an FD for Credit Card, the credit limit is 90-100% of the Fixed Deposit value, and the maximum limit is ₹3 Lakh, irrespective of the FD amount.

What are the benefits of a Credit Card Against FD?


An FD Credit Card offers several benefits, including:

  • Quick and Hassle-Free Approval: The FD acts as security, making the process smoother and faster.

  • Credit Score Building: Regular and timely payments contribute to improving your credit score.

  • No Income Proof Required: A Credit Card against FD does not require proof of income or employment.

  • FD Remains Intact: Your Fixed Deposit continues to earn interest while securing your Credit Card.

  • SmartEMI: Turn your online and in-store Credit Card purchases into easy EMIs and enjoy flexible repayment options with competitive interest rates.

  • Rewards & CashBack: Earn reward points and CashBack on eligible transactions and redeem them for vouchers, airmiles or statement credit.

  • Instant Credit Access: Get a Credit Card quickly, even if you don’t meet traditional eligibility criteria.

  • Interest-Free Period: Enjoy an interest-free period if dues are cleared on time.

  • Digital Access: Track and control your HDFC Bank Credit Card spends on MyCards via NetBanking or Mobile Banking.

Unlock Financial Freedom with an HDFC Bank Credit Card Against FD!


Understanding what FD Credit Card is can be beneficial for you if you wish to build or improve your credit score while still earning interest on your FD. With minimal documentation and no income proof required, it can be an ideal solution for students, first-time Credit Card users, and anyone needing instant credit.

Visit HDFC Bank today and apply for a Credit Card against Fixed Deposit to unlock a world of benefits!

Frequently Asked Questions

  • Can I withdraw my Fixed Deposit after getting an FD-based Credit Card?

    The FD is held as collateral. Premature withdrawal will lead to the closure of the Credit Card.

  • What happens if I miss my FD Credit Card payment?

    Late payments attract penalties, and repeated defaults may result in the Bank liquidating the FD to recover dues.

  • Does HDFC Bank charge an annual fee for FD-backed Credit Cards?

    It depends on the card variant. Some may have minimal or waived fees, while premium options might carry a fee.

  • Can I upgrade my FD-backed Credit Card?

    HDFC Bank allows upgrades based on credit behaviour and FD value.

  • What is the minimum FD tenure required to apply for an FD Credit Card with HDFC Bank?

    The FD tenure must be at least one year to be eligible for an FD-based Credit Card.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank’s requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

Visit HDFC Bank to apply for a Credit Card against FD today.

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