FD Credit Cards: The Ultimate Guide to Eligibility, Benefits & Top Options in 2025
📌 Quick Summary:
Looking for a credit card but have no credit history or a low credit score? FD-backed credit cards are your best bet! 💳 These secured credit cards use your fixed deposit (FD) as collateral, making approval easy and risk-free for banks. In this guide, we’ll explore:
✔ What FD credit cards are & how they work
✔ Eligibility criteria & documents required
✔ Top 3 FD credit cards in India (2025) – SBI, ICICI, Axis
✔ Step-by-step application process (online & offline)
✔ Pros, cons, hidden charges & smart usage tips
Ready to build your credit score safely? Let’s dive in! 🚀
📌 Introduction: What Are FD Credit Cards?
A Fixed Deposit (FD) Credit Card is a secured credit card issued against a fixed deposit held with the bank. Unlike traditional credit cards (which rely on your credit score), FD credit cards use your FD as collateral, reducing the bank’s risk.
🔥 Why Are FD Credit Cards Gaining Popularity in 2025?
✅ No credit history needed – Perfect for students, first-time earners, or those rebuilding credit.
✅ Higher approval chances – Since the bank has your FD as security, rejections are rare.
✅ Credit-building tool – Helps establish a strong CIBIL score with responsible usage.
✅ Flexible spending limits – Usually 70-90% of your FD amount (varies by bank).
💡 Did You Know?
After RBI’s 2024 guidelines, many banks now offer lower FD thresholds (as low as ₹10,000) for FD credit cards, making them more accessible!
💳 How Do FD Credit Cards Work?
1️⃣ Fixed Deposit as Collateral
You open an FD with the bank (e.g., ₹50,000).
The bank issues a credit card with a limit of 70-90% of the FD value (e.g., ₹35,000–₹45,000).
If you default, the bank can liquidate your FD to recover dues.
2️⃣ Credit Limit & Interest-Free Period
Most FD credit cards offer 45-50 days interest-free period.
If you don’t pay the full bill, high interest (up to 3.5% monthly) applies.
3️⃣ Key Differences from Traditional Credit Cards
| Feature | FD Credit Card | Regular Credit Card |
|---|---|---|
| Collateral | FD required | No collateral |
| Approval | Easy (no CIBIL) | Needs good credit |
| Limit | 70-90% of FD | Based on income & score |
| Rewards | Fewer benefits | More rewards & perks |
✅ Who Is Eligible for an FD Credit Card?
📋 Eligibility Criteria (2025 Updates)
✔ Age: 18+ years (some banks require 21+)
✔ FD Amount: Varies by bank (₹10,000–₹1,00,000+)
✔ Documents Needed:
PAN card
Aadhaar card
Passport-size photo
FD receipt (if applying separately)
🎯 Who Should Get an FD Credit Card?
Students with no income
First-jobbers with no credit history
NRIs returning to India
Individuals with low CIBIL scores
💳🏆 Top 3 FD Credit Cards in India (2025)
🥇 1. SBI Unnati Credit Card
🔹 FD Requirement: ₹25,000+
🔹 Credit Limit: Up to 90% of FD
🔹 Annual Fee: Zero for first 4 years (₹499 + GST afterwards)
🔹 Rewards: 1% cashback on all spends (capped at ₹5,000/year)
💡 Best For: Beginners & low-risk users
🥈 2. ICICI Bank Coral Credit Card (FD Variant)
🔹 FD Requirement: ₹40,000+
🔹 Credit Limit: Up to 85% of FD
🔹 Annual Fee: ₹500 (waived if spends exceed ₹50,000/year)
🔹 Rewards: 2X reward points on dining, movies, and travel
💡 Best For: Frequent spenders who want rewards
🥉 3. Axis Bank Insta Easy Credit Card
🔹 FD Requirement: ₹15,000+ (lowest in India!)
🔹 Credit Limit: 75% of FD
🔹 Annual Fee: Zero for life
🔹 Rewards: Discounts on Flipkart, Swiggy, and Zomato
💡 Best For: Minimalists & budget-conscious users
📝 How to Apply for an FD Credit Card (2025 Guide)
🔹 Online Process:
Visit the bank’s website (SBI, ICICI, Axis).
Select “Credit Card Against FD” option.
Fill application (PAN, Aadhaar, FD details).
Upload documents & e-sign.
Card dispatched in 5-7 days!
🔹 Offline Process:
Visit nearest branch with documents.
Open an FD (if not already done).
Submit credit card application.
Get card delivered in 7-10 days.
💡 Pro Tip: Some banks offer instant virtual cards (ICICI & Axis) for online use while you wait for the physical card!
”
Things to Watc”h Out For’
Hidden’ Charges &” Risks
‘Late payment fees (₹500–₹1,000)’
High interest (3-3.5% per’ month) if dues are unpaid
‘FD gets blocked until you close the card
What If You’ Default?
The bank liquidates your FD to” recover dues.
Your CIBIL score drops if payments are delayed.
🔎 How Do FD Credit Cards Work?
1️⃣ Step 1: Lock Your FD 🔒
You deposit ₹25,000 (example) in a fixed deposit.
Bank gives you a credit card with 70-90% limit (₹17,500–₹22,500).
2️⃣ Step 2: Spend & Repay 💸⏳
Use it like a normal credit card (shopping, bills, fuel).
Get 45-50 days interest-free period ⏳ (if paid in full).
3️⃣ Step 3: Build Credit or Lose FD? 📊⚠️
Pay bills on time? ✅ CIBIL score improves!
Miss payments? ❌ Bank blocks & liquidates FD!
📌 FD Credit Card vs. Regular Card – Key Differences
| Feature | FD Credit Card 🏦 | Regular Credit Card 💳 |
|---|---|---|
| Collateral | ✅ (FD needed) | ❌ (Unsecured) |
| Approval | ✅ (Easy) | ❌ (Needs CIBIL 700+) |
| Credit Limit | 70-90% of FD | Based on income |
| Rewards | Fewer | More (Travel, Cashback) |
| Risk | Low (FD secured) | High (Debt risk) |
💡 Pro Tip: Start with an FD card, build credit, then switch to premium cards! 🔄
⚠️ 5 BIG Risks of FD Credit Cards (Don’t Ignore!)
1️⃣ FD is LOCKED 🔒 – Can’t withdraw until you close the card.
2️⃣ High Late Fees 💸 – ₹500–₹1,000 per missed payment!
3️⃣ Interest Up to 3.5% per Month 📅 (If not paid in full).
4️⃣ Low Credit Limit – Only 70-90% of FD.
5️⃣ CIBIL Damage if Misused 📉 – Defaults hurt your score!
🚀 How to Apply in 2025 (Online/Offline)
📱 Online Application (5 Mins!)
1️⃣ Go to bank website (SBI/ICICI/Axis).
2️⃣ Click “Credit Card Against FD”.
3️⃣ Fill details + upload docs (PAN, Aadhaar, photo).
4️⃣ E-sign & submit!
5️⃣ Card arrives in 5-7 days!
🏦 Offline Application (Safe & Easy)
1️⃣ Visit branch with documents.
2️⃣ Open FD (if not done).
3️⃣ Submit application form.
4️⃣ Get card in 7-10 days!
💡 Hack: Some banks give instant virtual card for online use!
🎯 Who Should Get an FD Credit Card?
✔ Students (No income? No problem!)
✔ First-jobbers (Build credit early!)
✔ NRIs returning to India (No credit history?)
✔ Low CIBIL score? (Rebuild smartly!)
❌ Avoid if: You already have a good credit card or can’t lock FD money.
✅❌ FD Credit Cards: Advantages & Disadvantages (2025 Updated)
FD (Fixed Deposit) Credit Cards are great for beginners, but they also have some risks. Let’s break down the pros and cons in detail so you can decide if they’re right for you!
👍 Advantages of FD Credit Cards
1️⃣ No Credit History Needed (Best for Beginners!)
🚫 No CIBIL score? No problem!
✅ Approval is guaranteed (since your FD acts as security).
🎯 Perfect for students, first-jobbers, or NRIs with no credit history.
2️⃣ Helps Build CIBIL Score Fast
📈 Use responsibly → Boost credit score in 6-12 months!
💳 Later, you can upgrade to unsecured cards (like SBI SimplyCLICK or ICICI Amazon Pay).
3️⃣ Low Risk of Rejection
🔒 Bank takes zero risk (your FD is collateral).
✔ Approval rate = 99% (vs. 50-60% for unsecured cards).
4️⃣ Flexible FD Amounts (Some Start at Just ₹10K!)
💰 Minimum FD requirements:
Axis Bank: ₹15,000
SBI: ₹25,000
ICICI: ₹40,000
5️⃣ Interest-Free Period (Just Like Regular Cards!)
⏳ 45-50 days interest-free if you pay the full bill on time.
6️⃣ Safer Than Unsecured Cards (No Debt Trap!)
🛡️ Worst case? Bank closes FD to recover dues (no loan default risk).
👎 Disadvantages of FD Credit Cards
1️⃣ Lower Credit Limit (Only 70-90% of FD)
📉 Example:
FD = ₹50,000 → Credit limit = ₹35,000–₹45,000
Regular cards may give ₹1L+ limit with good income.
2️⃣ FD is Locked (Can’t Withdraw Until Card Closure)
🔒 Your money is stuck till you close the card.
⚠️ Need emergency cash? You must break FD & lose interest.
3️⃣ Fewer Rewards & Perks
🎁 Basic rewards only (1-2% cashback vs. 5-10% on premium cards).
✖ No airport lounge access, free golf, or premium discounts.
4️⃣ High Interest If Not Paid in Full (Up to 3.5% Monthly!)
💸 Miss a payment? Interest = 42% per year! (vs. 24-36% on unsecured cards).
5️⃣ Annual Fees (Some Banks Charge!)
💳 Examples:
SBI Unnati: Free for 4 years, then ₹499/year.
ICICI Coral: ₹500/year (waived on ₹50K+ spends).
Axis Insta Easy: Zero fees for life!
6️⃣ No Credit Limit Increase Without FD Top-Up
📌 Want a higher limit? Deposit more in FD (unlike unsecured cards where banks increase limits automatically).
⚖️ FD Credit Card vs. Regular Credit Card (Quick Comparison)
| Feature | FD Credit Card ✅ | Regular Credit Card 💳 |
|---|---|---|
| Collateral Needed | Yes (FD) | No |
| Approval Chance | 99% | 50-70% (needs good CIBIL) |
| Credit Limit | 70-90% of FD | Based on income & score |
| Rewards | Basic (1-2%) | High (5-10% + lounge access) |
| Risk | Low (FD secured) | High (debt risk) |
🎯 Conclusion: Should You Get an FD Credit Card?
👍 Pros:
✔ No credit score needed
✔ Helps build credit history
✔ Lower risk of rejection
👎 Cons:
✖ Lower credit limit
✖ Fewer rewards than unsecured cards
✖ FD remains locked
💬 Final Verdict:
If you’re new to credit or rebuilding your score, an FD credit card is a smart choice! Just pay bills on time, and in 6-12 months, you can upgrade to a regular credit card.
🚀 Ready to apply? Check out SBI, ICICI, or Axis Bank’s latest offers today!
💬 Final Verdict: Is an FD Credit Card Worth It?
👍 YES, if you:
Need first-time credit
Want to build CIBIL fast
Can pay bills on time
👎 NO, if you:
Already have good unsecured cards
Need high rewards & limits
