The basic idea
- You open a fixed deposit, for example ₹2,000.
- The bank marks the FD as security for your card.
- You get a credit card with a limit linked to the FD.
- You use the card and pay the bill each month.
What happens to your FD
- It stays in your name.
- It keeps earning interest at the bank's FD rate.
- It is only used if you don't pay your card bill.
- When you close the card after clearing dues, the FD is released to you.
How the limit works
The limit is linked to your FD, usually a large share of it. A bigger FD means a bigger limit. See how much limit a ₹2,000 FD gives.
FD card vs debit card
| FD credit card | Debit card | |
|---|---|---|
| Uses your money directly | No, you pay a bill later | Yes |
| Builds CIBIL score | Yes | No |
| Interest-free period | Yes, until the due date | Not applicable |
Who it suits
Students, people with no credit history and anyone without income proof. Read student credit card without CIBIL.
Frequently asked questions
Is an FD credit card the same as a secured credit card?
Yes. "Secured credit card" is the general term; the security is a fixed deposit.
Can I break my FD while using the card?
Not while the card is active. Close the card after paying all dues and the FD is released.
Does the FD card have a CVV and work online?
Yes. It works like any other credit card.
Keep reading
FD Credit Card for StudentsHow a card against a fixed deposit worksHow Much Limit Do You Get on a ₹2,000 FD Card?What limit to expect, and how to increase it.Can a Student Get a Credit Card Without Income?Yes, with a card against a small fixed deposit. Here's how.How to Build a CIBIL Score as a Student (Step by Step)Six steps to go from no score to a strong one while you study.