Credit card against FDs: Check details and best offers

Usually all banks issue credit card to its customers and credit cards offer freebies such as life insurance, accidental insurance, airport lounge access and cash back. To get a credit card the person should have an account with the bank. Banks also charge a high interest charge and penalty fees on credit card. But some banks are now offering credit cards against fixed deposits (FD) and these cards carry lower interest rate as compared to other credit cards. These are also issued to those with relatively lower credit score.

Money9 gives you a brief description of leading six credit cards issued against an FD. Several leading public and private sector banks offer credit cards against FD. The features of these cards vary from one another. The minimum amount against which a credit card can be issued also varies from one bank to another.

SBI Advantage Plus

You can withdraw cash across the world with this card. The bank allows up to 100 cash withdrawal limit. An FD is opened in your name for the amount fixed. The FD will have a lien in favour of SBI cards.

You can also get add-on cards for your family members on the same account. One key feature of this card is that it allows you to transfer the outstanding amount of any other credit cards to get the benefit of lower interest. It carries an annual fee of Rs 500.

ICICI Bank Coral Credit Card

You can open an FD with a minimum of Rs 20,000 and get a coral credit card against it. The minimum tenure of the FD has to be 6 months. You have to pay a joining fee of Rs 500 and, thereafter, an annual fee of Rs 500 from the second year.

There are several offers on BookMyShow, free airport lounge access and savings on fuel purchases bundled with this one.

ICICI Bank Platinum Credit Card

You can get this card by opening an FD worth a minimum of Rs 20,000. The application process is similar to the Coral Card with the only difference being that a Platinum Card is issued instantly.

So, if you walk into your nearest ICICI Bank and open an FD account, you can walk out with this credit card in your pocket. The features and benefits include a low rate of interest and savings on dining as well as fuel. As an added bonus, there is no annual or joining fee.

Axis Bank Insta Easy Credit Card

You can get an Insta Easy Credit Card against an FD of a minimum of Rs 20,000 and a maximum of Rs 25 lakh. You can choose the credit limit of your card. The bank allows credit limit of up to 80% of the FD amount.

Cash withdrawals of up to 100% of the credit limit are allowed. There is a 50-day credit free period and there is no joining or annual fee charged on the card.

YES Prosperity Rewards Plus

YES Bank offers credit cards against an FD of a minimum of Rs 50,000. One can earn accelerated rewards, joining benefits. A membership fee of Rs 350 is charged upon joining and, thereafter, an annual fee of Rs 350 is charged.

The bank has a tie-up with several merchants and companies for groceries, gadgets, and apparel as well as travel tickets.

YES FIRST Preferred

This is a premium credit card offered by YES Bank to its customers. The card is issued to individuals with a minimum net salary of Rs 2 lakh per month or an Income Tax Return of Rs 24 Lakh and above in a fiscal year.

The preferred card is available against an FD of Rs 3 lakh and above.

Benefits

One of the advantages of a credit card against FDs is that it can be issued to even those having a low credit score. These cards are not only easier to access but also help improve an individual’s low credit score.

These cards also carry lower interest rates compared to other credit cards. Sometimes it can be even half.

If you already have an existing FD in a bank, you can visit the nearest branch and apply for a credit card against it. You will need to submit an identity proof. No income proof is required.

If you don’t have an FD, make a deposit and fill the application form for a credit card against your FD. Remember, the higher the FD amount, the higher will be your credit limit.