5 MinsJuly 23, 2021
Credit Card against Fixed Deposit is an excellent way to enjoy Credit Card benefits while utilising your savings. This financial aid is especially beneficial for customers who want to build their credit score by using their existing savings.
What is a Credit Card against Fixed Deposit?
Credit Card against FD is a secured Credit Card offered to customers using a Fixed Deposit as a collateral. Simply put, if you have low credit scores or are unable to fulfil Credit Card requirements, you can still get a Credit Card by pledging
an FD with Axis Bank as collateral.
How does a Credit Card against FD work?
An FD-linked Credit Card is a product that enables you to enjoy Credit Card benefits by using your savings to build credit scores. Basic requirement for this type of credit card is only PAN and Aadhaar to verify your details. The credit limit
is typically a percentage of the FD amount.
What are the benefits of Credit Card against FD?
Guaranteed approval: As the Credit Card is backed by a Fixed Deposit, approval is almost guaranteed, making it an excellent option for those with limited or no credit history.
Higher credit limit: Usually, a bank offers 75% to 85% of the deposit amount as the credit limit on these types of cards. Therefore, higher the FD amount, higher will be your credit limit.
Minimal documentation: Only PAN and Aadhaar card are required to process the application.
Build credit history: Using a Credit Card responsibly can help you build and improve your credit score.
Attractive interest on FD: A Credit Card against FD benefits you by allowing your Fixed Deposit to continue earning interest while you enjoy the Credit Card benefits without disrupting your savings.
Reward points and benefits: Credit Cards often come with reward points, cashback offers and many other benefits enhancing your spending experience.
Low fees and charges: Credit Cards against FD often come with lower fees and charges compared to regular credit cards.
How to get a Credit Card against FD?
Eligibility Criteria for Credit Card against Fixed Deposit
- Age requirement: Must be 18 years old or above
- Fixed Deposit tenure: The minimum tenure is 1 year
- Minimum deposit amount: The minimum deposit amount for FD is ₹15,000
- KYC compliance: You must comply with the KYC rules set by the bank
Documents required to apply for a Secured Credit Card
- PAN card and Aadhaar card
Steps to apply:
1. Verify details: Begin the process by verifying your details with PAN and Aadhaar. It’s quick, simple and secure.
2. Choose card and fund FD: Select the Credit Card that best suits your needs from the available options and fund your Fixed Deposit.
3. Complete KYC via video call (For Non-Axis Bank Customers): We have made the KYC process effortless with a quick video call. You can now book an FD and get a Credit Card without opening an Axis Bank Savings Account.
4. Book your FD and get your Credit Card: Once your details are verified and the FD is booked, your Credit Card application is approved simultaneously.
So why wait? Apply for a Credit Card against FD today by clicking here.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
