Which is the Best Credit Card Against FD in India?

Most banks issue credit cards without collateral to an individual with a good credit score. Though, if you do not have the required credit score or do not meet the eligibility criteria, you might find getting a standard credit card difficult. In such situations, secured credit cards can be a good option. One such secured credit card category is credit card against FD.

These credit cards are most suitable for individuals who do not have any credit history or have a low credit score. Herein, the bank would keep the fixed deposit as a security against the credit card. As it is a secured credit card, the interest charged will be lower than other credit cards, and the credit limit offered varies between 80-90% of the FD. A credit card against FD offers you all the benefits of a credit card while you continue to earn interest on the fixed deposit.

Which is the best credit card against FD in India? What are the features offered by these credit cards? If you have such questions, read on to learn more about the best credit cards against FD.

Best Credit Cards Against FD

Listed here are some of the best options to help you choose the best credit card against FD that meets your requirements:

Axis Insta Easy Credit Card

This credit card against FD from Axis Bank offers a credit limit of up to 80% of the fixed deposit. The minimum fixed deposit amount required is Rs. 20,000. This credit card comes with a 50-day interest-free period.

Axis Insta Easy Credit Card offers cash withdrawals up to 100% of the available credit limit. Cardholders get a 1% fuel surcharge waiver across India and 15% off at partner restaurants. The bank charges no annual fees for this credit card.

Kotak 811 #DreamDifferent Credit Card

Kotak Mahindra Bank issues this credit card against FD against a minimum FD of Rs. 15,000. The bank offers credit limits of up to 90% of the FD amount for this secured credit card. There is no annual fee payable against this credit card.

The bank offers interest-free cash withdrawals for up to 48 days. You will get two reward points for every Rs. 100 spent online and one reward point for every other transaction of Rs. 100. Kotak 811 #DreamDifferent Credit Card offers 500 bonus reward points on spending Rs. 5,000 within 45 days of issuance. If the annual spending exceeds Rs. 75,000, the bank offers a cashback of Rs. 750.

YES Prosperity Rewards Plus Credit Card

YES Bank issues this credit card against FD for salaried and self-employed customers. The minimum FD amount for this credit card is Rs. 30,000. The applicants must be between the age of 21 to 60 years to be eligible. This entry-level credit card comes with a joining fee and renewal fee of Rs. 399 each.

The joining fee is waived on spending Rs. 10,000 within 90 days of starting using the card. The renewal fee will be waived if annual spending is above Rs. 50,000. YES bank offers 12,000 bonus reward points if you spend more than Rs. 3,60,000 a year. With this credit card, you can also get a fuel surcharge waiver across India. Moreover, you can be four reward points for every spend of Rs. 200 in some categories.

IDFC FIRST WOW Credit Card

IDFC Bank issues this secured credit card against FD with no documentation required. The minimum FD required for this credit card is Rs. 2,000. You can get a credit limit of up to 100% of the fixed deposit, earning up to 6% interest per year. IDFC Bank does not charge any annual fee or joining fee for this credit card.

You are eligible for up to a 20% discount at partner restaurants. Cash withdrawals of up to 100% of the credit limit are allowed by the bank. You can also enjoy up to 4 times reward points on every spend. If you opt for an EMI payment within 90 days of card set-up, bank offers 5% cashback up to Rs. 1,000. IDFC First Bank also allows payment of other credit card bills with this secured card.

SBI Unnati Credit Card

The State Bank of India issues this popular credit card against FD. The minimum fixed deposit required for this credit card is Rs. 25,000. SBI offers a credit limit of up to 100% of the FD amount for this credit card. Moreover, the annual fee is waived-off for the first four years. From the fifth year, a yearly fee of Rs. 499 will be levied. Customers get one reward point for every spend of Rs. 100 using this credit card. This credit card is available for salaried as well as self-employed individuals.

SBI offers a cashback of Rs. 500 if the annual spending in a year is above Rs. 50,000. This benefit is available for every membership year. Reward points offered can be used for purchases from SBI Rewards Catalogue. SBI Unnati Credit Card also comes with a 1% fuel surcharge waiver across India. This benefit is available for every fuel purchase between Rs. 500 to Rs. 3,000.  

Conclusion

A credit card against FD is a great option if you have a low credit score or have no credit history. It is important to use the credit card carefully to avoid spending more than you can afford. A lien will be marked against the fixed deposit until you clear all the credit card dues. While the interest for a secured credit card is lower than others, it is still better to use it only when necessary. Make the most of available offers and reward points to lower the actual cost of the credit card.

Read more such informative blogs on personal finance on Piramal Finance. We always suggest what’s financially best for you and help take care of your personal loan and credit card requirements if any.