Unlock Credit With Your FD! 5 Best Credit Cards Against Fixed Deposits

Fixed deposits are one of the most secure and stable method of investment, especially for risk-averse investors. But what if these FDs could help people in generating credit for their expenses? Several banks and financial institutions offer the option to apply for credit cards by depositing certain amount as fixed deposits.

While this is a favourable option for those who are low on their credit score, it is equally beneficial for those who want to invest their money for long term and avail credit benefits.

Top 5 Credit Cards Against FDs (Fixed Deposits)

Government as well as private banks offer the facility to apply for credit cards by investing in fixed deposits. Here are the top credit cards against FDs, as compiled by Paisabazaar.

SBI Step UP Credit Card

People can apply for this credit card by creating an FD of minimum Rs 2000 with the bank. The SBI Step Up credit card offers 90% of credit limit of the FD and comes with zero joining fee and annual fees. People can earn an interest rate of up to 6.5% on these fixed deposits.Additionally, there is no joining fee for FDs exceeding Rs 5,000, while a charge of Rs 250 plus 18% GST applies for FDs up to Rs 5,000.

Another advantage is that there is no requirement to have a savings account to avail this credit card. Users can enjoy an interest-free credit period of up to 50 days, offering flexibility in managing finances effectively. The combination of these features makes this credit card an attractive option for those looking to enhance their financial standing without incurring additional costs. The absence of annual and joining fees for higher FDs further adds to its appeal.

ICICI Instant Platinum Credit Card

The ICICI Instant Platinum Credit Card offers multiple benefits, cashbacks and rewards to users, as they enjoy interest on their fixed deposits (of more than Rs 50,000). The credit card comes with no joining or annual fees, making it a cost-effective choice for users. This feature allows cardholders to enjoy the benefits without worrying about additional charges.

Cardholders can enjoy a 25% discount of up to Rs 100 when purchasing at least two tickets through BookMyShow. This offer makes entertainment more affordable and accessible for users.

SBI Unnati Credit Card

Unlike the previous SBI Step Up Credit Card, this one requires a minimum fixed deposit of Rs 40,000 and comes with a limited period offer of no-annual fee. The credit card users can get no annual fee for the first 4 years and earn reward points on every Rs 100 spend. Additionally, a 1% fuel surcharge waiver is available, capped at Rs. 100 per statement cycle for purchases ranging from Rs. 500 to Rs. 3,000.

Cardholders can enjoy milestone rewards such as a Rs. 500 cashback upon reaching annual expenditures of Rs. 50,000. The card also provides enticing offers and discounts from popular brands like Zomato, Xiaomi, Amazon, ClearTrip, Ajio, and MakeMyTrip.

Kotak 811 Dream Different Credit Card

To apply for this credit card, people would need to apply for an FD with a minimum amount of Rs 5,555 (for 811 saving accounts customer). The credit card holders can get the benefit of lifetime free charges. The credit limit is set at 90% of the fixed deposit amount providing flexibility for users. Cardholders can withdraw cash up to % of their credit limit, making it convenient for emergencies.

For petrol purchases ranging from Rs. 500 to Rs. 3,000, a 1% fuel surcharge waiver is available. This benefit can be availed at any petrol pump, with a maximum waiver of Rs. 3,500 annually.

IDFC First Wow Credit Card

Applicants for this credit card would need to open an FD (minimum of Rs 10,000). However, their credit limit will be dependent on their FD amount as they can avail a minimum 100% of FD amount. They can enjoy upto 7.5% of interest on their FD value. Additionally, they will have exclusive benefits like up to 20% discounts at 1,500 restaurants. This perk allows for enjoyable dining experiences without straining the budget. There is personal accident coverage available up to Rs 2 lakhs. This insurance provides financial protection in case of unforeseen events, ensuring safety and security.