Credit cards against fixed deposits can be one of the best option for individuals who are interested in having a credit card but are not eligible. Credit cards are of best use when there is a financial emergency. It is not a bad idea to have one if you are using it in a planned way.
Many banks reject credit card application for small business individuals, housewives, with low credit score etc as there is no regular income.
If you have fixed deposit in the bank, you can avail a credit card based on that. However, the maximum limit can vary between 60-85 per cent on fixed deposit amount.
Here are top banks which are providing credit card against bank fixed deposits.
1) SBI - Advantage Plus Card Features
With SBI Advantage Plus Card you will have to open a Fixed Deposit with State Bank of India. The final credit limit on your SBI Advantage Plus Card could go up to 85% of the FD amount.
Once you pay annual fee and the joining fee as charged in the first bill, an Encash facility will be extended to you for Rs. 25,000 or Rs. 50,000 and the transfer the funds to SBI. The FD will have a lien in favor of SBI Cards.
2) Axis Bank- Insta Easy Credit Card
The minimum Fixed Deposit requirement for issuance of is Rs 20,000 and maximum of Rs 25,00,000. Insta Easy Credit Card cannot be issued against Tax Saver FDs, Flexi-Deposits (Auto-sweep FDs), FDs in the name of HUF/society/trust/companies. Joining Fee Rs.500. Finance Charges (Retail Purchases & Cash) 2.50% per month(34.49% per annum).
3) ICICI Bank
The Cardholder should maintain or open a Fixed Deposit of minimum Rs 20,000 amount with ICICI Bank. Credit limit will be 85 % of fixed deposit value ,subject to maximum of Rs 3 lac. The Instant Credit Card shall be activated after lien is marked on the Fixed Deposit.
4) Kotak Mahindra bank- Aqua Gold Card
Individuals with can enjoy the benefits of Interest free cash withdrawals, 2.5% fuel surcharge waiver, a credit limit up to 80% of term deposit amount and a free for life credit card. The maximum credit amount is High credit limit, up to Rs 12 lakhs
5) Central bank of India- Aspire Credit Card
Any individual above 18 years of age, can open Cent Aspire Deposit Account with our bank. The minimum is Rs 20,000/- and thereafter in multiples of Rs.1000/-. The maximum credit limit of 80% of Term Deposit amount.