What Is an FD Credit Card? Benefits, Eligibility & How It Works
Building a credit score can be challenging, especially if you’re new to credit or have a limited financial history. That’s where an FD Credit Card can help. It’s a unique type of credit card that is backed by a fixed deposit (FD), offering both security and flexibility. If you’re wondering how it works, who it’s for, or how to get started, this guide breaks it down in simple terms.
What Is an FD Credit Card?
An FD Credit Card is a secured credit card issued against your FD deposit. Instead of checking your credit score, the bank uses your bank FD as a guarantee. This makes it a great option for students, homemakers, or anyone looking to build or repair their credit profile.
The credit limit is usually a percentage (often 80-90%) of the fixed deposit amount. So, if you place a ₹50,000 FD deposit, your credit limit may be up to ₹45,000.
How Does an FD Credit Card Work?
FD Deposit and Card Limit
When you open a fixed deposit with a fd bank, that amount is held as collateral. Based on this amount, the bank issues you a credit card with a pre-set limit. The deposit remains untouched unless you default on your payments.
Many banks also allow you to use a flexible FD, which means you can enjoy the benefits of both credit and savings without compromising on liquidity.
Issuance Process via Apps
Thanks to digital banking, applying for this type of card is easier than ever. You can use an fd credit card app or an fd account app to:
- Open a fixed deposit
- Submit KYC documents
- Link your FD to the credit card
- Receive your card digitally or by mail
The online FD app process is quick, safe, and convenient.
Benefits of Using an FD Credit Card
There are many advantages to using an FD Credit Card, especially if you’re starting your credit journey.
- No credit history needed – perfect for beginners
- Builds your credit score over time with responsible usage
- Earn interest on your bank FD while using the credit card
- Simple to apply through an online FD or fd app
- Lower risk for banks, which means faster approval
If you’re looking for a card with fewer risks and more control, this option is ideal.
Who Is Eligible for an FD Credit Card?
Almost anyone with a valid fixed deposit is eligible. Here’s what you usually need:
- A fixed deposit of ₹10,000 or more (amount varies by bank)
- Minimum age: 18 years
- Valid KYC documents
- No existing credit card defaults
The best part? You don’t need a credit score to apply. Whether you’re a student, self-employed, or a freelancer, you can get started easily.
How to Apply for an FD Credit Card Online
Steps to Apply via Online FD App or Credit Card App
- Choose a trusted fd bank or financial institution.
- Open an FD through a fd account app or website.
- Complete your KYC verification online.
- Link your FD to the card during the application process.
- Receive your card within a few days—digitally or by post.
You can also manage your credit card and deposit through the same FD app, making everything fd easy and centralized.
Things to Keep in Mind Before Applying
Before applying, consider the following:
- No early withdrawal: Most banks lock your FD until the card is closed.
- Minimum tenure: Your FD should usually be active for 6–12 months or more.
- Late payments hurt: Even though it’s a secured card, missing payments can harm your credit score.
Use the card wisely and pay dues on time to make the most of your secured credit journey.
Final Thoughts: Is an FD Credit Card Right for You?
If you’re new to credit or want a safer option, an FD Credit Card is a smart start. It’s easy to apply through an online FD platform, and you get the dual benefit of earning interest while building your credit score.
With digital tools like an fd credit card app or online fd app, you can manage everything from your phone. It’s fast, secure, and designed to make financial growth more accessible for everyone.
